DSG CRYPTO REGULATORY ROUNDUP: JUNE 2024
International Bodies
Dubai Financial Regulator Updates Crypto Token Rules for Funds: The Dubai Financial Services Authority (DFSA), an independent regulator in the United Arab Emirates that oversees entities registered in the Dubai International Financial Centre (DIFC), has announced amendments to its cryptocurrency regime. These changes aim to enhance and advance the regulatory framework for tokens within its special economic zone. More here.
MiCA Laws Come into Effect in Europe: The cryptocurrency landscape within the European Union is poised for a significant transformation as the first set of new regulations under the Markets in Crypto-Assets (MiCA) Regulation is about to take effect. The implementation of MiCA is expected to take place gradually. Regulations concerning stablecoins are anticipated to come into effect on June 30. More here.
United States
U.S. President Joe Biden Vetoes SAB 121 Repeal: U.S. President Joe Biden vetoed a resolution that would have overruled the U.S. Securities and Exchange Commission (SEC) SAB 121. In a May 31 letter, Biden wrote, “This reversal of the considered judgment of SEC staff in this way risks undercutting the SEC’s broader authorities regarding accounting practices.” The guidelines were set to take effect on April 11 but were met with considerable backlash from the crypto community and lawmakers alike. More here.
New Law Grants U.S. President Power to Block Digital Asset Access: A new U.S. law grants the president unprecedented authority to block access to digital assets. On Monday, Senator Mark Warner inserted elements of his Terrorist Financing Prevention Act into The Intelligence Authorization Act for Fiscal Year 2025. Under the new law, the President can block transactions between U.S. persons and foreign entities identified as supporting terrorist organizations. This includes imposing strict conditions on foreign financial institutions maintaining accounts in the U.S. if they are found facilitating such transactions. More here.
SEC’s Gensler Anticipates Ether ETF Approvals by Sept: SEC Chair Gary Gensler announced that the final approvals for ether ETFs should be finished this summer, with registration details currently being finalized at the staff level. During a Senate budget hearing, Gensler reiterated his concerns about noncompliance in the crypto industry and avoided specifying whether ether is a commodity. More here.
SEC to Drop Investigation into Ethereum: The SEC is dropping its investigation into whether Ether is a security. “The Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0,” Ethereum developer Consensys said in a June 19 X post. “This means that the SEC will not bring charges alleging that sales of ETH are securities transactions,” which the firm hailed as a “major win for Ethereum developers, technology providers, and industry participants.” More here.
Ethereum ETF Process is ‘Going Smoothly,’ says SEC’s Gensler: The process of launching the first spot Ether exchange-traded funds (ETFs) in the United States is “going smoothly,” says the SEC Chair Gary Gensler on June 25 at Bloomberg conference. The SEC approved 19b-4 filings from eight ETF bidders on May 23, but the asset managers are still tweaking their Form S-1s — the final filings the SEC needs to approve before they go live for trading. More here.
Bitcoin ETF Issuer VanEck Files for Solana ETF in the US: VanEck, one of the first issuers of spot Bitcoin exchange-traded funds (ETFs) in the United States, has filed for a new Solana ETF. Matthew Sigel, head of digital assets research at VanEck, took to X on June 27 to announce that the firm has filed for a Solana. The new fund, called the VanEck Solana Trust, aims to capitalize on Solana’s decentralized nature, high utility and economic feasibility, Sigel said. According to the executive, the trust is the first filing for a Solana ETF in the United States. More here.
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 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.
New IRS Rules to Tighten Crypto Tax Reporting: The Biden administration has introduced new tax regulations for cryptocurrency platforms, requiring them to report user transactions to the IRS starting in 2026. This move aims to curb tax evasion and simplify tax reporting for crypto investors. While the rules apply mainly to custodial platforms like Coinbase and Binance, decentralized finance platforms will be addressed in a separate rule. More here.