Two more crypto accounts in the US: Law Decoded, July 17–24

The past week was marked by two new legislative initiatives for the crypto industry in the United States. Senator Jack Reed sponsored a bipartisan bill that would tighten know-your-customer (KYC) and anti-money laundering (AML) regulations and approval requirements for decentralized finance (DeFi). Bill DeFi operations must go through The same requirements apply to “other financial companies, including centralized crypto trading platforms, casinos and even pawnshops”.

Two Major crypto lobby groups affected Legislation: Coin Center and the Blockchain Association. The former issued separate statements calling the law a “disorderly”, “impractical” and “unconstitutional” way of regulating DeFi. Kristin Smith, CEO of the Blockchain Association, reiterated Coin Center’s concerns, calling the new legislation unnecessary. Smith said federal law enforcement agencies already have the tools and expertise to deal with this “relatively small but significant problem.”

Republicans on the House Agriculture and House Financial Services Committees introduced the Financial Innovation and Technology for the 21st Century Act. The bill gives the Commodity Futures Trading Commission (CFTC) jurisdiction over digital goodsClarifying the Securities and Exchange Commission’s (SEC) authority to create a process for digital assets, which were initially treated as securities sold as commodities. Representatives French Hill and Dusty Johnson, who co-sponsored the bill, Sent a letter to SEC Chairman Gary Gensler The day before the bill was introduced, Joe criticized the agency’s so-called “regulation by enforcement” of the crypto industry.

Multiple Spot Crypto ETF Filings Head to the Federal Register

Spot bitcoin exchange-traded fund (ETF) filings from several companies have been published in the Federal Register, taking them a step further in the SEC process. The Federal Register has received notice of proposed rule changes that would allow bitcoin ETF applications from BlackRock, Fidelity, Invesco Galaxy, VanEck and WisdomTree. Publishing the application in the Official Journal of the US Government gives the SEC the opportunity to accept or reject the application, extend the time allowed, or open the application to public comment.

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Kuwait bans crypto and virtual asset transactions

The State of Kuwait is the latest jurisdiction to regulate almost all operations involving cryptocurrencies such as bitcoin (B T c, Kuwait’s main financial regulator, the Capital Markets Authority (CMA), has issued a circular on monitoring and issuing virtual assets in the country. In the circular, the CMA reaffirmed its commitment to a “complete ban” on major use cases and operations involving cryptocurrencies, including payments, investments and mining. The circular also bars local regulators from issuing licenses that would allow companies to provide virtual asset services as a commercial business.

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Marathon shareholders filed a lawsuit against the company’s top management

US-based crypto mining company Marathon Digital is going to court after its shareholders allege that CEO Fred Thiel, along with other top executives, violated fiduciary duties, unjustly enriched himself and squandered the company’s resources. According to the legal team, the company’s management downplayed its problems, artificially inflated Marathon’s valuation, received excessive compensation, made lucrative insider sales, and unfairly received large bonuses based on false and misleading statements.

Wants to get the company’s governance right by strengthening the shareholder board’s oversight of operations, nominating at least four shareholder candidates for the board, and eliminating the previous process of director election.

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