Remember the time when the passing mention of bitcoins, stablecoins, or even central bank digital currencies by a senior government official was considered big news across the crypto market? It looks like it was forever. While we are in the process of global popularization of digital assets, this kind of data comes in large quantities every day and is predictable. Randall Quarles, a retiring member of the US Federal Reserve Board, warned against over-regulation of stack currencies and even condemned some of the findings made by the president’s task force on financial markets in a November report. Treasury Secretary Janet Yellen admitted she wasn’t sure about the digital dollar, but would-be Fed Vice President Lyle Brainard appears to be fully involved in the central bank’s digital currency project. Needless to say, prominent economic policy decision makers are deeply immersed in these issues.
Below is a short version of the latest Legislative newsletter. For a full overview of the policy changes over the past week, sign up for the full newsletter below.
SEC in ETF Spotlight Again
Meanwhile, the Securities and Exchange Commission is working on bitcoin-traded funds. WisdomTree’s request for a BTC spot product for trading on the CBOE bZx exchange was another application that was rejected by the regulator. The rationale behind the decision came when a Securities and Exchange Commission ruling indicated that sponsors of the proposed ETF lacked a clear ability to prevent fraud and manipulation and protect investors.
The Securities and Exchange Commission (SEC) has been criticized from several quarters for its discriminatory stance against the adoption of derivatives based on derivatives, while discouraging products based on the asset itself. The latest round of criticism came from asset manager Grayscale Investments in a letter to SEC Secretary Vanessa Countryman, in which the company claims that refusing to work with both types of BTC-based products is a violation of the Administrative Protection Act (APA).
Crypto CEOs will rise up the hill
Later this week, the US House of Representatives Financial Services Committee is calling for a hearing on digital assets and the future of finance – essentially what is officially called a hearing. Top cryptocurrency executives, including representatives from Circle, FTX, Bitfury and Coinbase, will climb Capitol Hill to advocate for soft regulation of the industry and its role in the country’s economic competitiveness. This could be the biggest opportunity in months for crypto zone leaders to win over the ears of key legislators and voice their opinions and recommendations directly.
The latest issue of this newsletter has focused so much on the disturbing news from India that the new bill proposes a complete ban on all “private cryptocurrencies.” The good news is, things can be much less dire than they first appear. The sponsor of the bill, former Indian Finance Minister Subhash Garg, said the wording of the potential ban was “misleading” and that the actual form of crypto regulation in the country would emerge after extensive discussions with stakeholders and industry participants.
What’s more, a memo received by local media indicates that the government has considered a number of cryptocurrency regulatory measures rather than outright bans.