DSG Crypto Regulatory Roundup: April 2024
International Bodies
UK to Propose Clearer Crypto Regulations by July: The U.K.’s Economic Secretary to the Treasury, Bim Afolami, said the government’s priority is improving the payments landscape and providing regulatory clarity for digital assets and blockchain. More here.
United States
Stablecoin Bill Unlikely to Get Pinned to FAA Reauthorization, Putting Effort on Hold Again: A flash of hope that an FAA bill could carry U.S. stablecoin rules across the finish line has been momentarily dashed as Congressional leaders were said to ward off amendments. More here.
Patrick McHenry Accuses Gary Gensler of Misleading U.S. Lawmakers Over Ether: The Chair of the U.S. House Financial Service Committee, Patrick McHenry (R-NC) alluded to claims in Consensys’s recent lawsuit against the SEC, suggesting an investigation into Ether as a security. More here.
SEC Reviews New Rules for Bitcoin Options Trading: The SEC is evaluating whether exchanges’ current surveillance and enforcement mechanisms can handle Bitcoin exchange-traded products (ETPs). More here.
Senator Warren Draws Another Pro-Crypto Opponent: The crypto industry’s top foe on the Hill, Senator Elizabeth Warren (D-MA), is getting another crypto-friendly challenger to her reelection bid: Republican Ian Cain. Politico reports that Cain, who founded a startup incubator south of Boston that’s geared toward growing the use of blockchain technology, claims cryptocurrency won’t be a major focus of his campaign, even as he goes up against Congress’ loudest crypto critic and against Republican John Deaton, whose digital-asset advocacy has attracted financial backing from major industry players. More here.
Senators Lummis and Gillibrand Unveil Stablecoin Legislation: Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) have unveiled their own long-awaited legislation to set up rules for stablecoins. Senator Lummis said in an interview that she hopes the bill will be “a signal” to “the whole Congress.” More here.
Senator Brown Says He is Open to Advancing Stablecoin Legislation: Senate Banking Chair Sherrod Brown (D-OH) told Poltico that he is open to advancing stablecoin legislation as part of a package with other financial services proposals, breathing unexpected life into the digital asset push on Capitol Hill. More here.
U.S. Treasury Official Outlines Proposals for Tighter Crypto Crime Control: U.S. Deputy Treasury Secretary Adewale Adeyemo told the Senate Banking Committee that terrorists prefer cash, but the department is worried about crypto’s growth. More here.
SEC Says Self-Reporting Key Factor in Reducing Off-Channel Communication Fines: A senior enforcement official said the regulator considers several factors in determining the size of penalties imposed on financial institutions over recordkeeping violations. More here.
Blockchain Association and Crypto Activist Group Sue SEC Over ‘Dealer Rule’: The Blockchain Association and a Texas-based crypto activist group are suing the SEC over its controversial “Dealer Rule”, arguing it threatens the digital asset industry and innovation. More here.
Is The SEC Too Scary?: Politico reports that SEC Commissioner Hester Peirce lamented the strained relationship between the agency and Wall Street. Peirce, the SEC’s senior Republican commissioner, said she has heard from “countless people” who no longer feel comfortable discussing new products, businesses, and regulatory issues with the SEC in part because of fears of a backlash. An SEC spokesperson shot back: “Staff prioritizes providing the market with helpful, clear information. That said, it is not the role of staff to help well-heeled lawyers find innovative or creative ways around the securities laws.” More here.
Senators Ask Behnam to Explain Bankman-Fried Meetings: Senators Elizabeth Warren (D-MA) and Chuck Grassley (R-IA) are calling on CFTC Chair Rostin Behnam to explain his interactions with former FTX chief Sam Bankman-Fried. Senators Warren and Grassley sent Behnam a letter, requesting he accounted for “all meetings and correspondence between you and Sam Bankman-Fried during your tenure.” More here.