DSG CRYPTO REGULATORY ROUNDUP: JANUARY 2024

International Bodies

EU Banking Authority Extends Anti-Money Laundering Guidance: EU-based crypto firms are now subject to guidance from the banking watchdog in its “fight against financial crime.”  More here.

United States

U.S. SEC Approves Bitcoin ETFs : The Securities and Exchange Commission (SEC) on January 10 approved the first U.S.-listed exchange traded funds (ETFs) to track bitcoin, in a watershed for the world’s largest cryptocurrency and the broader crypto industry.  More here.

Bitcoin Pump Prompts Review  Miner Energy Use: The Department of Energy (DOE) is collecting data on U.S. crypto miners’ energy consumption starting next week.  The DOE  is demanding crypto miners report their energy consumption for the next six months after concerns about a recent increase in the price of Bitcoin, which is leading to a rush of crypto mining.  More here.

SEC’s Settlement Gag Rule ‘Undermines Regulatory Integrity’ – Hester Peirce: Settlements are the “most common” way the SEC resolves enforcement actions, but this stops defendants from speaking out, says Hester Peirce.  More here.

Chair Of Digital Assets Subcommittee Hopes to See Crypto Bills ’Coming To Fruition’ In 2024: The U.S. House Financial Services Committee passed the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act in July 2023. Representative French Hill (R-AR) said U.S. lawmakers in the House of Representatives had marked up two bills aimed at addressing stablecoins and the regulatory framework of cryptocurrencies and had a “very good working draft” of the latter by the end of 2023. The subcommittee chair said he hoped both bills would be “on the same track” moving forward. More here.

CFTC Seeks Feedback on AI Use in Compliance And Market Dynamics: The CFTC announced that the request for comment complements the directives the Biden Administration established for the safe, secure and trustworthy development of artificial intelligence.  More here.

U.S. GAO Recommendations to SEC Before Spot Bitcoin ETF Approval: In its assessment, the GAO found that although the SEC has a dedicated wing toward emerging technologies, it’s not well equipped to deal with the current challenges and needs specific improvements.  More here.

Coinbase to Dispute SEC Crypto Authority in Federal Court: The SEC’s lawsuit against Coinbase will be heard in New York on January 17. The case may determine the future of several crypto tokens in the United States.  More here.

FINRA Finds Violations In 70 Percent of Crypto Asset Public Communications Reviewed: The U.S. regulator launched the review on crypto-related public communications following the collapse of FTX in November 2022.  More here.

U.S. Lawmakers Push Back on Proposed CFPB Rule, Citing Potential Impact on Crypto: Representatives Patrick McHenry (R-NC), Mike Flood (R-NE), and French Hill (R-AR) called for an additional 60-days for a CFPB proposal to consider the impact on digital assets.  More here.

U.S. Virginia Introduces Bill to Protect Digital Assets Mining Rights: The legislation establishes rights for digital assets miners and validators and provides tax incentives for the purchase of goods and services with cryptocurrencies.  More here.

SEC Crypto Enforcement Actions Under Gary Gensler Reach 10-Year High: According to Cornerstone Research, since the SEC chair was confirmed by the U.S. Senate in 2021, the commission has “ramped up” the number of crypto-related enforcement cases.  More here.