Last week, the United States came one step closer to regulatory clarity for the cryptocurrency industry. The House of Representatives Financial Services Committee (FSC) passed the Financial Innovation and Technology for the 21st Century Act by a vote of 35-15. The bill aims to introduce rules on when crypto firms must register with the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC). In addition, a law that indicates certainty in Blockchain was also voted down. Here are the details…
Progress for cryptocurrency regulations in the US
The House of Representatives Financial Services Committee (FSC) approved the Financial Innovation and Technology for the 21st Century Act by a vote of 35-15. Meanwhile, the bipartisan Blockchain Regulatory Certainty Act, backed by Republican Representative Tom Emmer and Democratic Representative Darren Soto, also passed a vote in the FSC. The law aims to set guidelines that remove barriers and requirements for “Blockchain developers and service providers” such as miners, multi-signature service providers, and decentralized finance platforms. Despite the legislation’s progress, some lawmakers refused to support another proposed piece of legislation. This rejected part was the Digital Assets Market Structure Bill. Representative Maxine Waters said the bill is heeding very closely the calls of the crypto industry. She also denounced she for ignoring the SEC’s regulatory guidance.
The US Senate also passed the $886 billion 2024 National Defense Authorization Act. The bill included a crypto-related amendment by a group of senators, including Cynthia Lummis, Elizabeth Warren, Kirsten Gillibrand, and Roger Marshall. This change will enable the establishment of review standards for crypto. It will also require the U.S. Department of the Treasury to do a study to block anonymous crypto transactions. This includes using crypto mixers like Tornado Cash, which are used to make transactions private.
New capital rules for cryptocurrencies emerge in Canada
On the other hand, according to the Office of the Superintendent of Financial Institutions (OSFI), Canada’s financial watchdog is proposing changes in its approach to capital and liquidity towards cryptoassets. The proposed rules will simplify institutions’ approach to perceived crypto risks. It will also identify four categories of cryptoassets and their capital transactions. OSFI is opening two draft guidelines for public comment by 20 September. One of the guidelines affects federally regulated depository institutions such as banks and credit unions. The other addresses the regulatory capital treatment of crypto-asset exposure for insurers.
Russia’s CBDC receives final regulatory approval
As Cryptokoin.com also reported, there are critical crypto money developments outside of the Americas. Russia is making progress on its central bank digital currency (CBDC), with President Vladimir Putin signing the digital ruble bill. With this approval, the digital ruble law is expected to come into effect officially from August 1, 2023. It is also planned that all rules will be ready to be implemented, except for one rule. The third article, which includes amendments to some Russian laws, including those related to bankruptcy and inheritance, is noteworthy. This is expected to take effect from August 2024. The new legislation officially authorizes the Bank of Russia to launch the first CBDC pilot with real consumers. Previously, the government had planned to launch trials in April in collaboration with 13 local banks.
Binance wants CFTC lawsuit dropped
Finally, crypto exchange Binance and its CEO, CZ, demanded the dismissal of the lawsuit filed by the CFTC. In a court filing, attorneys for Binance and CZ accused the CFTC of overstepping its regulatory mandate and of overriding regulatory oversight. The file states that the CFTC is trying to regulate foreign individuals and companies operating outside the United States. It is argued that this goes beyond the limits of legal authority. It is also stated that he interfered with the principles of well-established friendship with foreign sovereigns.
The CFTC filed a lawsuit against Binance in March, alleging that the company offers unregistered derivatives products in the US, including cryptocurrency trading services, futures and options products. The regulator also accused Binance of inadequate auditing, lack of reliable Know Your Customer or Anti-Money Laundering programs, and futures commissions, not signing up with the exchange in a certain way.
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