DSG Crypto Regulatory Roundup: May 2024
International Bodies
Turkey Proposes Aligning Crypto Legislation with International Standards: The Turkish ruling party submitted a draft crypto bill to the parliament on May 16 that focuses on licensing and registration for crypto service providers and aligns with internation standards. More here.
United States
U.S. House Approves FIT21 Crypto Bill with Bipartisan Support: In a 279 to 136 vote on May 22, House lawmakers approved H.R.4763, the Financial Innovation and Technology for the 21st Century (FIT21) Act. If passed by the Senate and signed into law, the bill clarifies the roles the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have over digital assets. 71 Democrats joined with 208 Republicans to vote in favor of the bill. More here.
CBDC Anti-Surveillance State Act Passes U.S. House in Partisan Vote: The CBDC Anti-Surveillance State Act passed the United States House of Representatives on a largely partisan vote on May 23. The bill, which faces a vote in the Senate, amends the Federal Reserve Act of 1913 to prohibit Federal Reserve banks “from offering certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes. More here.
Spot Ether ETFs Receive Official Approval from the SEC: The United States Securities and Exchange Commission has given the regulatory green light to spot Ether exchange-traded funds (ETFs) in the United States. In a May 23 filing, the SEC approved the 19b-4 filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise — approving the rule changes allowing spot Ether ETFs to be listed and traded on their respective exchanges. More here.
Resolution Overturning SEC Crypto Rule is On Biden’s Desk – Now What?: On May 23, the House presented President Biden a joint resolution calling for the Securities and Exchange Commission (SEC) to strike down a rule affecting financial institutions doing business with crypto firms. H.J.Res.109 would strike down the SEC’s Staff Accounting Bulletin (SAB) No. 121. On May 8, 21 Democrats in the House sided with Republicans to pass H.J.Res.109. A similar bipartisan result followed in the Senate on May 16, as the resolution passed with a 60 to 38 vote. More here.
FalconX to Pay $1.8M for Failing to Register as FCM: Crypto trading firm FalconX will pay out $1.8 million to settle charges from the Commodity Futures Trading Commission which said the firm failed to register as a futures commission merchant. The exchange’s Edge product acted as a crypto prime broker, offering access to various crypto exchanges to trade derivatives, the CFTC said, but was not properly registered. More here.
House Passes Slate of Blockchain Bills: The House passed a pair of bills on May 15 aimed at boosting blockchain, the digital ledger technology behind cryptocurrency. Representative Larry Bucshon’s (R-IN) bill would require the Department of Commerce to examine how to use blockchain to monitor the supply chain and promote innovation. The House also passed legislation from Representative Darren Soto (D-FL) by a voice vote that would require the Department of Commerce and the Federal Trade Commission to study blockchain technology and digital tokens, respectively. More here.
Former President Trump Says His Campaign Will Accept Crypto: Former President Trump announced his campaign to run for president in 2024 would accept cryptocurrency donations. In a May 21 notice, the Trump 2024 campaign said it had launched a fundraising page for eligible people to donate in crypto using the Coinbase Commerce product. More here.
Donald Trump Declares U.S. Must Not Settle for ‘Second Place’ in Crypto Industry: The United States must not settle for anything but top place in the cryptocurrency industry, according to former President Trump. “I am very positive and open minded to cryptocurrency companies, and all things related to this new and burgeoning industry,” he claimed before taking aim at the current president, Joe Biden. More here.
One-Third of U.S. Voters Say They’ll Weigh Candidates ‘Crypto Views’ Before Voting: A Harris Poll, funded by bitcoin ETF issuer Grayscale, assessing U.S. voters concluded interest in crypto is on the rise, and 33 percent said digital assets will figure into their support of candidates. One in three U.S. voters said they’ll consider a political candidate’s position on cryptocurrencies before making a voting decision. While those 33 percent are taking a keen interest, the online survey of more than 1,700 people found 77 percent said a U.S. presidential candidate should at least have an “informed perspective” on crypto. More here.
NYSE, CoinDesk Working on Bitcoin Index Options: The New York Stock Exchange is working alongside CoinDesk Indices to launch cash-settled options tracking CoinDesk’s Bitcoin Price Index. More here.
NYSE Would Consider Crypto Trading on Clearer Regulation: The New York Stock Exchange would consider allowing trading of cryptocurrencies if regulations on the sector were clearer, President Lynn Martin said. “If there was clear regulatory guidance [in the US], it would be an opportunity to look at,” Martin said at a conference, adding bitcoin ETFs’ $58 billion in assets is a “strong sign” there is demand for crypto products. More here.
U.S. Treasury Report Outlines Potential Financial Risks of NFTS: The United States Treasury Department has released its first-ever finance risk assessment for nonfungible tokens (NFTs) to provide regulators with greater insight into potential risks and security concerns. More here.