Republican Presidential Candidate Vivek Ramaswamy Unveils Crypto Policy Framework with Three Freedoms of Crypto
Republican presidential candidate Vivek Ramaswamy has presented a crypto policy framework called "The Three Freedoms of Crypto" at the North American Blockchain Summit. The framework aims to protect developers of smart contract code from being held liable for the actions of users. Ramaswamy has promised to direct government prosecutors to go after bad actors, not the code they use or the developers who write it. He has also pledged to provide regulatory clarity that gives new cryptocurrencies "safe harbor" exemptions from securities laws and prevent federal agencies from creating rules that limit the use of self-hosted wallets. Ramaswamy is currently polling between 0% and 8% of the Republican vote in New Hampshire.
Coinext CEO: Brazil’s cryptocurrency regulatory environment is driving competitiveness
CEO of Coinext said that Brazil's cryptocurrency regulatory environment is driving competitiveness.
IMF to Publish Handbook on Central Bank Digital Currencies and Their Potential to Improve Payment Systems
The International Monetary Fund (IMF) is set to publish a handbook on central bank digital currencies (CBDCs), with initial findings suggesting that a well-designed CBDC could improve payment systems alongside other solutions. The handbook, due after the 2023 annual meetings, will cover a range of frequently asked questions on CBDCs, including policy objectives, legal considerations, cyber resilience and readiness to issue. While the US is not currently supportive of a digital dollar, other major jurisdictions such as the European Union appear more open to CBDCs, with an official at the Bank of Italy suggesting a digital euro could be the answer to stablecoins. The IMF paper advises policymakers to explore CBDCs carefully and systematically, given the complexities and novelty involved.
U.S. lawmakers from both parties send letter urging regulators not to implement SEC’s crypto accounting announcement
According to Jinse Finance, Patrick McHenry (Republican from North Carolina), Chairman of the House Financial Services Committee, and Senator Cynthia Lummis (Republican from Wyoming), along with colleagues from both parties, jointly wrote to the regulatory agencies of the Currency Supervision Bureau (OCC), the Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA), urging these regulatory agencies not to implement the SEC's crypto accounting bulletin (SAB 121).
CFTC Chairman: It is possible for an incident like FTX to happen again
Rostin Behnam, chairman of the US Commodity Futures Trading Commission (CFTC), stated that after nearly a year since the collapse of the cryptocurrency exchange FTX (resulting in billions of dollars in losses for customers), "nothing has changed and we may face another FTX-type event." Behnam believes that Congress needs to develop a roadmap, echoing his comments at last year's Senate Banking Committee hearing. He then stated that the CFTC lacks the power to fully regulate the digital commodity market, and in order to prevent this from happening again, Congress must provide appropriate powers to it.
California Governor Signs Digital Financial Assets Law, Regulating Cryptocurrency Industry
The signing of the Digital Financial Assets Law by California Governor Gavin Newsom has caused a stir in the industry, with many viewing it as a response to recent scandals. The new law is based on New York's bitlicense regime and puts the responsibility of filling in the details on California's Department of Financial Protection and Innovation (DFPI). The DFPI should prioritize protecting consumers, investors, and the company itself from cyber threats and criminal misuse, as well as enforcing policies tailored to the business and consistently deploying and enforcing them. The agency should also draft regulations well in advance, define terms and the scope of regulation, and consider having companies register with the agency before applying for licensing. The California bill will come into effect on July 1, 2025, and the industry should start preparing for compliance measures without waiting for regulations to be issued.
Turkey's New Crypto Regulations to Focus on Licensing and Taxation, Aim to Shed FATF Grey-List Status
Turkey is expected to introduce regulations to regulate the crypto market in 2024, with a focus on licensing and taxation. Turkey ranked fourth globally in raw crypto transaction volumes, reflecting Turks' desire to counteract currency devaluation and youths' interest in new technology. The government said work on regulation for crypto asset service providers and taxation of digital virtual assets will be on the agenda for 2024.
Bim Afolami appointed as Economic Secretary to the Treasury, to oversee UK's crypto policies
Bim Afolami, a Member of Parliament, has been appointed by King Charles II as the new Economic Secretary to the Treasury of the United Kingdom. Afolami's appointment is part of a restructuring of ministers and secretaries. As Economic Secretary, Afolami will oversee policies related to digital assets and central bank digital currencies in the UK. The self-regulatory trade association CryptoUK plans to brief Afolami on the potential contributions of crypto to the UK economy and other challenges in the sector. The UK government has been addressing policies related to AI, fintech, and the metaverse through regulation, enforcement actions, and investigations.
Blockchain Association Opposes Proposed IRS Tax Regulations for Cryptocurrency Transactions
The Blockchain Association, a US-based cryptocurrency advocacy group, has submitted a letter to the Internal Revenue Service (IRS) opposing proposed tax regulations. The group argues that the rules, which aim to regulate the sale and exchange of digital assets by brokers, exceed the IRS's authority and demonstrate a "fundamental misunderstanding" of digital assets and decentralised technology. The Blockchain Association claims that many participants in the crypto space would struggle to comply with the regulations if enacted, and that the rules could infringe on privacy rights. The proposed regulations could go into effect in 2026 for transactions conducted in 2025.
Crypto Industry Pushes Back Against Proposed Regulations on Reporting Cryptocurrency Transactions
The crypto industry is resisting proposed regulations that would require crypto brokers to report certain transactions, citing concerns about the impact on decentralized finance and constitutional issues. More than 124,000 letters have been submitted in response to the proposed rules, with some arguing that they go beyond the definition of a broker. The Blockchain Association's senior counsel has stated that the proposal is too broad and should only apply to centralized entities. The proposal has also raised constitutional concerns, including privacy issues and vague definitions.
