US Congress needs to take control of crypto legislation

According to Kristin Smith, CEO of the Blockchain Association, a prominent U.S. crypto industry nonprofit, the United States Congress needs to take control of crypto legislation and make it a more “open process” where the entire marketplace is looked at “comprehensively.” This recommendation comes from Smith, who serves as the president of the Blockchain Association.

During an interview with Bloomberg on February 22, 2019, Smith said that the cryptocurrency business need U.S. politicians to lead crypto legislation, despite the fact that this would make the process “extremely long.” In the meanwhile, regulators will “step in.”

Smith mentioned that despite regulators “moving very quickly,” progress on legislation is happening “behind closed doors,” implying that it is essential for more industry involvement in a “open process,” which would involve Congress. He said this to suggest that it is vital for more industry involvement in a “open process.”

Smith is of the opinion that “very particular facts and circumstances” are at the root of the problem with legislators taking the lead on legislation via enforcement actions and settlements.

She stated that it is a tough situation for Congress to be in at the present due to the fact that many people in Washington, D.C. who “were close” to the former FTX CEO Sam Bankman-Fried and FTX feel “burned” and “betrayed” over the collapse of the cryptocurrency exchange in November 2022.

Smith is optimistic that stablecoin legislation will soon be implemented in the United States because, according to Smith, Congress has been looking into it “since 2019” and “the work has been done.” She said that it “came close” to occurring the year before, just before to the failure of FTX.

She went on to say that the dangers associated with cryptocurrencies are distinct from those associated with conventional financial services, and that as a result, regulators need to spend more time looking at market regulation and “tailor to those risks.”

Smith suggested that stablecoin and “market side” regulation should be a higher priority than focusing on legislating crypto-related criminal activity, saying that public ledgers make it “much more transparent” than what we see in the traditional financial system. This idea stemmed from Smith’s assertion that stablecoins and “market side” regulation were more important than focusing on legislating crypto-related criminal activity.

This comes after the chief policy officer of the Blockchain Association, Jake Chervinsky, took to Twitter on February 15 to state that regardless of how many enforcement actions the Securities and Exchange Commission and the Commodity Futures Trading Commission bring, they are “bound by legal reality.” Chervinsky also stated that “neither” has the authority to “comprehensively regulate crypto.” This news comes after Chervinsky made these statements.


Tagged : / / / / / / / / / /

Public feedback on the SFC’s proposed cryptocurrency exchange licensing regime

The Securities and Futures Commission (SFC) in Hong Kong is seeking comment from the general public on its most recent proposed licensing framework for cryptocurrency exchanges. The SFC has asked for feedback from members of the general public. It is anticipated that this framework will begin to function beginning in June of 2023.

During the public consultation window, some of the most important questions that will be addressed include whether or not licensed exchanges should be allowed to serve retail investors in the country and what kinds of measures should be put in place to provide a range of “robust investor protection measures.” Both of these questions will be discussed. Another important question that will be discussed is whether or not licensed exchanges should be allowed to serve institutional investors. In addition to this, the subject of whether or not to allow regulated exchanges in the nation to provide services to institutional investors will be brought up for discussion as well.

On February 20, the Securities and Futures Commission (SFC) released a statement that described a new licensing framework for the industry and provided a summary of the consultation process that had taken place. All centralized cryptocurrency trading platforms that are now operating in Hong Kong are needed to get a license from the regulatory body in order to continue doing business in that region in accordance with the industry’s newly implemented licensing regulations.

The Securities and Futures Commission of Canada (SFC) has developed a set of proposed regulatory standards, which were derived from the prerequisites that are already in place for registered securities brokers and automated trading venues. The SFC is responsible for regulating the securities and futures markets in Canada. However, in order to meet the new regulatory requirements, several criteria that have previously been established have been amended. These modifications have been made.


Tagged : / / / / /

Australia Opens Public Consultation on National Taxonomy of Crypto Assets

In response to the ongoing regulatory arms race taking place throughout the world, Australia has initiated a public consultation over the classification of its own cryptocurrency assets. The national authorities want to differentiate between four primary categories of items that are connected to the cryptocurrency business.

The Australian Treasury issued a consultation document on “token mapping” on February 3, claiming that it would serve as a fundamental step in the government’s multistage reform strategy to regulate the market. This announcement was made. It is intended to contribute to “a fact-based, consumer mindful, and innovation-friendly” approach to the formulation of public policy.

In this study, some fundamental definitions for cryptographic concepts are proposed using a methodology that is both “functional” and technology-neutral.

At the most fundamental level, it provides an explanation of the fundamental ideas behind cryptographic networks, cryptographic tokens, and smart contracts. A decentralised computer network that is capable of hosting crypto tokens is what the Treasury envisions when it talks about what a crypto network is. The storing of information and the processing of user commands are its two fundamental functions. According to the research study, Bitcoin and Ethereum are the two public crypto networks that have the largest name recognition.

A unit of digital information that may be “exclusively utilised or controlled” by a person who does not administrate the host hardware where the token is recorded is referred to as a crypto token. This is the definition of a crypto token. According to the research report, one of the most important characteristics that set crypto tokens apart from other types of digital records is the ability to exercise “exclusive use and control.”

A computer code that is submitted to the database of a crypto network is what constitutes a smart contract. It entails intermediaries or agents executing tasks under promises or other arrangements or processes being carried out by cryptographic networks without the need of intermediaries or agents, as well as without the use of promises.

Using these straightforward concepts as a foundation, the study presents its taxonomy of four distinct categories of crypto-related products:

Although the study does not present any legislative efforts and rather suggests to begin the conversation on this taxonomy, the authors of the article predict that a significant section of the crypto ecosystem will be able to comply with current regulations with only minor modifications. It is the parts of the ecosystem whose services are being assured by public, self-service software that may need the development of a whole new regulatory framework.

The Treasury Department will keep an open mind and listen for input until March 3. Midway through the year 2023, a similar report will be published on the potential licencing and custody framework for cryptocurrencies. This will be the next key stage in the ongoing process of a national regulatory debate.

The consultation document that His Majesty’s Treasury of the United Kingdom had prepared for the crypto regulation was also released on February 1. In it, the financial authority stressed the lack of requirement in the separate law, given that the current Financial Services and Markets Act is capable of covering digital assets. This is due to the fact that the Financial Services and Markets Act was amended in 2013.


Tagged : / / / / /

U.S. Representative French Hill offers insights into digital asset regulations

To guarantee that “America remains the home for innovation in fintech and blockchain,” the chairman of a recently established congressional subcommittee on digital assets in the United States has vowed to work toward the promotion of progressive cryptocurrency rules.

On the 26th of January, French Hill, a representative for the United States in the House of Representatives, appeared on the programme Squawk Box on CNBC and provided some of the first insights into what may be expected for crypto legislation in the nation.

“Identifying best practises and policies that continue to strengthen diversity and inclusion in the digital asset ecosystem” is the mission of the Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, which was established on January 12 and is chaired by Hill. This subcommittee also focuses on digital assets and financial technology.

During the course of the interview, Hill said that Bitcoin (BTC) was not nearly prepared to be used as a real-time payment mechanism yet. However, he went on to say that “we want to make sure that America is the location for innovation in fintech and blockchain is part of that future.”

Hill said, in response to a question concerning the feasibility of a spot Bitcoin exchange-traded fund (ETF), that the newly formed subcommittee also wants to investigate the viability of such a fund.

The Securities and Exchange Commission has repeatedly turned down proposals for spot Bitcoin exchange-traded funds (ETFs), including one submitted by Grayscale, the company that manages the most cryptocurrency assets in the world.

Other topics that will get attention from the panel include the federal privacy legislation, a measure concerning stablecoins, and the implications for the securities market. In addition, the subcommittee will collaborate with the Senate about the commodities facet of the cryptocurrency business.

He said that cryptocurrency trading and exchanges would need to be “overseen,” although he did not identify which agency would be responsible for doing so.

According to what he stated, “all of that is up for discussion, and all of it is going to be a focus this year.”

By asking, “as long as Gary Gensler is there, do you see any movement being made?” The presenter gave the impression that the SEC has been unproductively dragging its feet.


Tagged : / / /

New York State Introduces Bill Allowing State Agencies to Accept Crypto

A measure that would allow state agencies to accept cryptocurrencies as a means of payment for fines, civil penalties, taxes, fees, and other charges imposed by the state was presented to the New York State Assembly on January 26. This law would take effect if it is passed.

Democratic Assembly Member Clyde Vanel, who is widely regarded as a crypto-friendly legislator, is the person responsible for the introduction of New York State Assembly Bill A523. It gives state agencies the authority to enter into “agreements with persons to provide the acceptance, by offices of the state, of cryptocurrency as a means of payment” for a variety of different types of fees, including “fines, civil penalties, rent, rates, taxes, fees, charges, revenue, financial obligations or other amounts, including penalties, special assessments and interest, owed to state agencies.”

The measure does not mandate that state agencies accept cryptocurrencies as a form of payment; nevertheless, it does make it clear that state entities might legally agree to accept such payments, and that these agreements ought to be enforced by the judicial system.

The term “cryptocurrency” is defined in the proposed legislation as “any kind of digital currency in which encryption methods are employed to govern the formation of units of money including, but not limited to, bitcoin, ethereum, litecoin, and bitcoin cash.”

Stablecoins such as USD Coin (USDC) and Tether may or may not be included in this definition, depending on how the concept is understood (USDT). On the one hand, the issuer of the stablecoin rather than cryptography is often responsible for regulating the supply of the stablecoin. On the other hand, the bill does recognise that certain cryptocurrencies have a “issuer,” and it provides that agencies can charge the payor an extra fee if such a fee is charged by the cryptocurrency’s issuer. Additionally, the bill does recognise that some cryptocurrencies have a “mining pool,” but it does not recognise that some cryptocurrencies have a “mining pool.”

In order for the measure to be enacted into law, it will first need to get approval from both the Assembly and the Senate of New York, and then it will need to be signed by Governor Kathy Hochul.

Many people have the impression that the state government of New York is against cryptocurrencies. It wasn’t until November 2022 that New York became the first state to adopt a statute that effectively outlawed the mining of almost all cryptocurrencies. In addition to this, it has been attacked for the stringent “BitLicense” that it mandates all cryptocurrency exchanges get. In April of 2022, the Mayor of New York made the case that the legislation requiring a BitLicense ought to be overturned.


Tagged : / / / / / / /

New clause in South Africa’s advertising code for cryptocurrency

The Advertising Regulatory Board (ARB) in South Africa has introduced a new provision for the cryptocurrency business. This clause is intended to safeguard consumers against unethical advertising in the cryptocurrency industry.

A new clause was added to Section III of the advertising code for the nation of South Africa, and it stipulates that businesses and people in the country are required to comply by specific advertising standards relating to the offering of cryptocurrency-related goods and services.

‘Expressly and clearly’ stating that investments may result in the loss of cash “since the value is changeable and may go up as well as down” is something that all advertisements, including those for cryptocurrency offers, are required to do according to the first clause of the regulation.

In addition, advertisements indicating prospective investment losses must not contradict any cautions that are given.

It is essential that marketing communications for certain services and goods be presented in a way that is “clearly understood” to the target demographics.

Advertisements are required to provide statements that are fair and impartial on the returns, features, advantages, and dangers involved with the product or service being promoted.

Rates of return, predictions, or forecasts must also be fully supported, including a description of how they are computed and an explanation of what circumstances apply to the returns that are being promoted.

Any information referring to prior performance cannot be used to guarantee future performance or returns, and it should not be presented in a manner that generates “a favourable image of the marketed product or service.” [Case in point:]

It is inappropriate for advertisements placed by bitcoin service providers who are not also registered credit providers to promote the purchase of cryptocurrencies through credit.

Nevertheless, this does not stop service providers from promoting linked payment options that they provide to customers.

Additionally, it is going to be required of social media influencers and brand ambassadors that they will conform with particular advertising guidelines.

This includes the need that truthful information be shared, as well as the ban against giving advise on trading or investing in crypto assets and the prohibition against making claims of advantages or returns.


Tagged : / / / / / / /

US Federal Reserve bank at the helm of CBDC research effort appoints new president

The Federal Reserve Bank of Boston, or Boston Fed, has selected economist Susan M. Collins, University of Michigan provost, to serve as its new president and chief executive officer.

The seat has become vacant in September 2021, when the then-president Eric Rosengren expedited his retirement amid a controversy around his securities trading while in office. Collins, who is Jamaican-American, will become the first Black woman in the Fed’s history to lead a Federal Reserve Bank. She will assume office on July 1.

The Boston Fed is one of 12 regional branches of the Federal Reserve. Along with the Fed’s Board of Governors and the Federal Open Market Committee, or FOMC, the Federal Reserve Banks participate in the development of U.S. monetary policy. The Boston Fed president is also one of the five regional Reserve bank leaders who serve as voting members on the FOMC, the body responsible for setting interest rates.

As Cointelegraph reported, the Boston Fed, in partnership with the Digital Currency Initiative at the Massachusetts Institute of Technology, has recently completed the first stage of Project Hamilton – a research initiative aimed at developing and testing a hypothetical central bank digital currency (CBDC) design.

As an academic, Collins studied development economics, exchange rate regimes, and macroeconomic imbalances. During her career, she has not made public statements related to CBDCs or digital assets in general. Also, little is known about her monetary policy views: According to a Reuters report, in a 2019 interview Collins spoke in favor of raising the Fed’s 2% inflation target.