DSG Crypto Regulatory Roundup: July 2024
International Bodies
German Government Prepared for Next $276M BTC Sell-Off: The German government has continued its Bitcoin sell-off after sending roughly 3,100 BTC worth around $178 million in the span of an hour on July 9. At the same time, the government also withdrew roughly 1,700 Bitcoin worth around $91.78 million from Bitstamp, recouping BTC holdings from the exchange. At the time of writing, the German government has also shifted a further 3,107 BTC out of its main holdings, likely preparing for a further imminent sell-off. More here.
EU Releases Crypto-Asset Classification Tools to Help Firms Comply with MiCA: On July 12, three European Supervisory Authorities, the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority, released a consultation paper intended to standardize and clarify the classification of digital assets across the region. The newly released guidelines provide a structured approach to classifying various types of crypto assets, including determining whether a token falls under MiCA through question-based prompts. More here.
United States
Spot Ethereum ETF Launch Delayed by SEC Comments: The launch of United States-based spot Ether exchange-traded funds (ETFs), which many expected to occur as early as July 2, has been delayed by the U.S. Securities and Exchange Commission (SEC). The SEC has taken additional time to return the S-1 forms submitted by prospective spot Ether ETF issuers. The SEC commented on the S-1 forms and requested resubmissions by July 8, however, this new timeline means the launch of the spot Ethereum ETFs could be postponed until mid-to-late July. More here.
SEC vs. Binance: Court Rules BNB Sales, Cryptocurrencies Not Securities: Cryptocurrencies and secondary sales of the BNB token do not constitute securities, a United States federal court ruled in another significant victory for the crypto industry. Cryptocurrencies and secondary sales of BNB do not constitute securities offerings, according to Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia. In a major win for the crypto industry, Judge Jackson ruled that cryptocurrency tokens themselves are not securities. More here.
North Carolina’s CBDC Ban Bill Vetoed by Governor: North Carolina Governor Roy Cooper has vetoed a bill banning the state from implementing a U.S. Federal Reserve-issued central bank digital currency (CBDC) despite receiving near-unanimous support in the state’s House of Representatives and Senate. Cooper, explained in a June 5 statement that House Bill 690 was too “premature, vague, and reactionary” to sign into law. More here.
U.S. Senate Recommends Blockchain for National Security Tests: The United States Senate Committee on Armed Services directed the Secretary of Defense, Retired General Lloyd Austin, to test potential applications of blockchain technology for supply chain management and other national security applications within the US Department of Defense (DOD). The committee issued the report for the fiscal year 2025 National Defense Authorization Act (NDAA) on July 9. The committee recognized the potential of blockchain technology to enhance the supply chains of US national defense and economic competitiveness. More here.
U.S. Lawmakers Meet with Crypto Advocates in DC Roundtable: Members of the United States Congress and an adviser to President Joe Biden, acting in her personal capacity, joined a roundtable event with crypto industry heads. On July 10, Representative Ro Khanna, Representative Joe Neguse, Senator Kristin Gillibrand, and Anita Dunn discussed digital assets with industry advocates, including Crypto Council for Innovation CEO Sheila Warren, Blockchain Association CEO Kristin Smith, Coinbase chief legal officer Paul Grewal, Ripple CEO Brad Garlinghouse, Stellar Development Foundation CEO Denelle Dixon, and entrepreneur Mark Cuban. More here.
Supreme Court Ruling ‘Changes the Game’ for Crypto U.S. Firms: The impact of the United States Supreme Court’s Loper Bright vs. Raimondo decision is potentially profound for the cryptocurrency industry. Loper Bright’s impact will be “enormous” in the long run, according to Joshua Simmons, partner at Wiley Rein and adjunct professor at the University of Virginia School of Law. Simmons acknowledged the ruling was a “game changer” for the crypto and blockchain sector in particular. More here.
Donald Trump Picks Crypto-Friendly JD Vance as Running Mate: Prospective Republican Party presidential candidate and former President Donald Trump has chosen Senator JD Vance to be his running mate in 2024. In a July 15 announcement on Truth Social, Trump saidthe Ohio senator would join his ticket as the vice presidential Republican candidate. Vance is rated as a “strong” supporter of cryptocurrencies by Coinbase’s Stand With Crypto initiative, based on positive social media posts and voting in favor of pro-crypto pieces of legislation. More here.
SEC Requests Final S-1 Submissions for Ether ETF Launch: The SEC has reportedly delivered final instructions to asset managers preparing to launch Ether exchange-traded funds (ETFs). According to Bloomberg analyst Eric Balchunas, the Commission instructed issuers to submit their final S-1 filings by July 16, targeting a launch for the new funds on July 23. The final filings must include the fees issuers plan to charge in their new crypto funds. More here.
U.S. Spot Ethereum ETFs to Begin Trading on July 23: On July 22, the US Securities and Exchange Commission (SEC) approved the final S-1 registration statements necessary for the ETFs to launch on stock exchanges, including the Nasdaq, the NYSE Arca, and the Chicago Board Options Exchange. The successful spot Ether ETF issuers include BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck and Invesco Galaxy. More here.
U.S. Senator Marshall Withdraws Support for Senator Warren’s Anti-Crypto Bill: U.S. Republican Senator Roger Marshall has withdrawn his support for the Digital Asset Anti-Money Laundering Act (DAAMLA), a controversial anti-crypto bill he co-sponsored with Democratic Senator Elizabeth Warren in 2022. Marshall withdrew his support as a co-sponsor of the bill on July 24, leaving 18 senators still supporting the bill. More here.
SEC Approves Grayscale Bitcoin Mini Trust for Trading on NYSE Arca: The U.S. Securities and Exchange Commission (SEC) approved Grayscale’s newest spot Bitcoin (BTC) exchange-traded fund (ETF), Grayscale Bitcoin Mini Trust (BTC), for listing on the New York Stock Exchange’s (NYSE) Arca electronic trading platform. The approval is an important milestone for Grayscale, which announced plans to spin off a portion of its flagship Bitcoin fund, Grayscale Bitcoin Trust (GBTC), into the new Mini Trust. More here.
Bill Targeting Illicit Use of Crypto Passes U.S. House: U.S. lawmakers in the House of Representatives have voted in favor of legislation targeting the illicit use of cryptocurrencies. House members passed the Financial Technology Protection Act on July 22 after the bill was introduced in April 2023. Representative Zach Nunn and Jim Himes introduced the bill to address how “rogue and foreign nations” could bypass sanctions. More here.