International Bodies
EU Scraps Proposed $1K Payment Limit for Self-Custody Crypto Wallets: The European Union is moving ahead with new anti-money laundering laws to limit cash and some crypto transactions, but proposed noncustodial wallet limits did not make the final cut. More here.
UK Regulator to Tighten Measures Against Crypto Market Abuse: The United Kingdom’s financial regulator said it will improve its market monitoring abilities and develop advanced analytics systems. More here.
United States
Court Rules that the SEC Can Proceed with Coinbase Lawsuit: Coinbase’s motion to drop the SEC’s case against the exchange was denied in court, allowing the regulator to proceed with its lawsuit. The decision, made by U.S. District Judge Katherine Failla, allows the SEC to pursue its lawsuit against Coinbase, which alleges that the exchange operates as an unregistered exchange, broker, and clearing agency, according to March 27 court documents. More here.
Lawmakers Demand SEC Clarify Position on Ether: According to a letter sent to SEC Chair Gary Gensler, leaving ether in regulatory limbo between the SEC and CFTC could have “irreparable consequences for the digital asset markets.” More here.
Gensler Criticizes Crypto Industry: Chair Gensler implied many market participants preferred to “whittle away at the SEC’s disclosure regime” rather than register, despite criticism that the requirements were unclear. More here.
Advocacy Groups File Amicus Briefs Encouraging SEC to Write Crypto Rules: The Crypto Council for Innovation, Satoshi Action Fund, Texas Blockchain Council, Paradigm, Lejilex and the U.S. Chamber of Commerce all called on the SEC to establish guidelines. More here.
SEC Requests Extra $158M From Federal Budget to Police Crypto: Part of the funds would hire staff across SEC divisions, with one job dedicated to crypto and another to help with the increased lawsuits the agency faces. More here.
CFTC Targets Draft Vertical Integration Rule by Summer: The Commodity Futures Trading Commission (CFTC) is set to release a draft rule by summer aimed at addressing the complexities of vertically integrated models within the financial market. The initiative, announced by Chair Rostin Behnam, seeks to establish clear regulations for entities that combine brokerage, clearinghouse, and exchange functions under one umbrella, following the recent trend toward consolidated structures. More here.
President Biden Resurrects 30 Percent Crypto Mining Tax in New Budget Proposal: U.S. Senator Cynthia Lummis (R-WY) said that while this shows that the government is bullish on crypto, a 30 percent tax would destroy the industry’s foothold in the country. More here.
CFTC’s Behnam Calls on Congress to Regulate Crypto: CFTC Chair Behnam has called on Congress again to pass legislation clarifying regulatory jurisdictions for cryptocurrencies. “We need to fill the gap in crypto regulation,” Behnam said, citing bitcoin’s recent price volatility. “We need to act, Congress needs to act to fill this gap, specifically around bitcoin which clearly is a commodity,” he added. More here.
HFSC Votes To Disapprove SEC Crypto Custody Bulletin: The House Financial Services Committee has voted 31-20 to disapprove a SEC bulletin that limits banks’ ability to hold customers’ crypto assets. More here.
Senators Pressure SEC’s Gensler Not to Approve Any More Crypto ETFs: Two Democratic Senators, Jack Reed (D-RI) and Laphonza Butler (D-CA) argue that any further approvals would expose investors to risks including “fraud and manipulation.” More here.
McHenry Says House Has ‘Workable’ Stablecoin Bill: House Financial Services Committee Chairman, Patrick McHenry (R-NC), in his final year in Congress, is still optimistic about passing a U.S. stablecoin bill, and Senator Cynthia Lummis (R-WY) said the Senate’s majority leader is open to it. More here.
Virginia Passes Crypto-Friendly Bill to Foster Blockchain Expansion: Virginia Senate Bill No. 339, which aims to create a work group dedicated to studying cryptocurrencies, blockchain, and crypto mining, received majority support from the Senate. More here.
Crypto Fan Won Ohio Senate Primary: Bernie Moreno will be the Republican nominee for Senate in Ohio, facing Sen. Sherrod Brown (D-OH) in this year’s general election. More here.
CFTC Commissioner Pham Warns Against Infringing on SEC’s Authority: Two U.S. financial regulators cannot seem to reach a consensus on how to treat certain cryptocurrencies as securities or commodities. More here.
Biden Administration Takes Action to Safeguard Public from AI Risks: By December 1, agencies must establish specific safeguards for AI applications that could affect the rights or safety of Americans, as outlined in a White House fact sheet. More here.