US Crypto Regulation Progresses with Approval of New Acts
Last week, the United States made strides towards regulatory clarity in the crypto industry. The House Financial Services Committee (FSC) approved the Financial Innovation and Technology for the 21st Century Act, which aims to establish rules for crypto firms to register with the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC). Additionally, the bipartisan Blockchain Regulatory Certainty Act passed, removing hurdles for blockchain developers and service providers. However, the Digital Assets Market Structure Bill faced opposition for being too industry-friendly.
- The Financial Innovation and Technology for the 21st Century Act aims to establish rules for crypto firms to register with the CFTC or SEC.
- The Blockchain Regulatory Certainty Act removes obstacles for blockchain developers and service providers.
- The Digital Assets Market Structure Bill was criticized for being too accommodating to the crypto industry.
- The US Senate passed an amendment to the National Defense Authorization Act, requiring examination standards for crypto and a study on anonymous transactions.
Canada Proposes New Capital Rules for Crypto Assets
Canada’s Office of the Superintendent of Financial Institutions (OSFI) is proposing changes to its capital and liquidity approach to crypto assets. The proposed rules simplify the treatment of crypto risks by defining four categories of crypto assets and their capital treatment. Public consultations on the draft guidelines are open until Sept. 20 and will affect deposit-taking institutions and insurers.
Russia’s CBDC Receives Final Legal Approval
President Vladimir Putin has signed Russia’s digital ruble bill into law, allowing the central bank to launch a CBDC pilot with real consumers. The digital ruble law will come into effect on Aug. 1, 2023, with amendments to federal laws taking effect from August 2024. Previously, trials were expected to begin in April in collaboration with local banks.
Binance Requests Dismissal of CFTC Lawsuit
Binance and its CEO Changpeng “CZ” Zhao have requested the dismissal of a lawsuit filed by the CFTC. The filing accuses the CFTC of overstepping its regulatory authority and interfering with foreign individuals and corporations operating outside the US. The CFTC had sued Binance for offering unregistered derivatives products and lacking proper supervision and registration.
Hot Take:
The progress in US crypto regulation shows a willingness to establish clear rules for the industry, but there are still debates about the extent of regulatory oversight. The approval of Canada’s proposed capital rules for crypto assets reflects efforts to address perceived risks. Russia’s CBDC approval signals its commitment to digital currency innovation. Binance’s request for dismissal highlights the ongoing tensions between regulators and crypto exchanges.
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