Author: a16z crypto Regulatory Team, Compiled by: DAOSquare
a16z Crypto Regulatory Update is a series of reports , which highlights the latest crypto regulatory and policy events related to web3 and crypto builders, tracked and curated by the a16z crypto regulatory team. These overviews are based on the latest news, latest updates, new guidance, ongoing legislation and frameworks issued by regulators/bodies, industry alliances and professional associations, banks, governments and other entities as they impact the crypto industry (or applications) around the world program). We also occasionally include selected additional resources in our updates, such as speeches, posts, or other commentary from us or others.
Quick preview
The U.S. Treasury Department and Internal Revenue Service (IRS) announced that businesses do not have to report cash receipts until they issue regulations Digital asset income.
The U.S. Securities and Exchange Commission (SEC) expanded the definition of "dealer" to include those who regularly engage in trading and market activities, including A market participant that provides substantial liquidity in digital asset securities). The new definition may cover certain crypto businesses that are required to register with the SEC, become members of a self-regulatory organization, and comply with federal securities laws
Federal Deposit Insurance Corporation (FDIC)
US commodity futures trading Commission (CFTC)
- U.S. Commodity Futures Trading Commission (CFTC) charges against digital assets The platform Debiex is suspected of using the popular romance scam strategy to fraudulently misappropriate $2.3 million of customer funds for digital asset commodity trading.
- Office of Customer Education and Outreach of the U.S. Commodity Futures Trading Commission (CFTC) Education and Outreach issued a customer advisory warning the public about artificial intelligence scams, some of which are related to crypto-asset arbitrage algorithms.
- Office of Customer Education and Outreach of the U.S. Commodity Futures Trading Commission (CFTC) Education and Outreach issued a customer advisory alerting users of dating apps, messaging services and social media to be aware of scams asking for financial support or investment advice, sometimes related to crypto investments.
- CFTC Chairman Rostin Behnam said, "Lack of Legislation has not dampened enthusiasm for digital assets,” while the need for federal legislation for cash market digital assets “has never been more important.”
United States Congress
- Tennessee Republican Senator Bill Haggerty and Wyoming Republican Senator Cynthia Lummis Proposed "Partnerships to Stop Illicit Financial Conduct Bill 2024, which would establish a scheme under which certain government agencies and designated private business entities would share information about potential illegal financial irregularities and threats, and the new risks associated with them.
- Wyoming Republican Senator Cynthia Lummis, North Carolina House of Representatives Representative Wiley Nickel (Democratic Party) and Nebraska House Rep. Mike Flood (R) introduced a Congressional Review Act resolution to overturn U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 121, which requires those offering crypto assets to consumers The company in custody records the assets in custody on the company's balance sheet.
- North Carolina House Financial Services Committee Chairman Patrick McHenry (Republican) and others sent a letter to consumers Financial Protection Bureau (CFPB) Director Rohit Chopra is urging him to reopen and extend the public comment period on the CFPB’s recent proposal to “define large players in the market for general-purpose digital consumer payment applications.”
- North Carolina House Financial Services Committee Chairman Patrick McHenry (Republican) and others sent a letter to the Secretary of the Treasury Janet Yellen, in her capacity as chair of the Financial Stability Oversight Council (FSOC), asked for clarification on the FSOC’s call to fill existing regulatory gaps in the spot market for non-securities digital assets.
- Ohio Republican Senator JD Vance, North Carolina Republican Senator Thom Tillis, Tennessee Republican Senator Bill Hagerty, Republican Senator Cynthia Lummis of Wyoming, and Republican Senator Katie Boyd Britt of Alabama sent a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler regarding the SEC's enforcement against Digital Licensing Inc. (also known as "DEBT Box") expressed concern about the development of the program.
- Wyoming Republican Senator Cynthia Lummis told CoinDesk TV that she is optimistic that "this year, maybe even "The first half of the year" is optimistic about stablecoin legislation.
United StatesDepartment of Justice
- The U.S. Department of Justice (DOJ) has unsealed an indictment charging a Belarusian and Cypriot national in connection with the operation of the now-defunct Cryptocurrency exchange BTC-e is involved, which facilitates transactions for cybercriminals around the world.
- The U.S. Department of Justice has charged three people in connection with the SIM-swapping scam. The amount of the fraud exceeded $400 million. According to media reports, FTX< span style="font-size: 18px;"> It may have fallen victim to the attack hours after declaring bankruptcy.
- The U.S. Department of Justice recently charged two crypto fraud suspects and secured another People have pleaded guilty in connection with a global crypto Ponzi scheme called HyperFund involving $1.89 billion. The U.S. Securities and Exchange Commission (SEC) charged two of the individuals in related civil lawsuits.
- A federal jury has convicted Hydrogen Technology's former financial engineering executive of manipulating securities prices and scheming to buy Hydrogen Technology’s Cryptocurrency HYDRO Defrauded Investors.
- A commodities trading adviser has been sentenced to two years in prison and home confinement after having Pleaded guilty to using cherry-picking to steal client profits at a pair of commodity pools he set up to trade cryptocurrency and foreign exchange futures.
- An Indian national admitted to selling controlled materials on darknet markets and agreed to confiscate 150 million USD cryptocurrency.
- A federal grand jury indicted a Texas man who submitted He made substantial gains by underreporting or failing to report $4 million worth of Bitcoin sales in false tax returns.
U.S. Department of the Treasury
- The U.S. Treasury Department and Internal Revenue Service (IRS) announced that businesses will not have to report numbers as cash receipts until the Treasury Department and IRS issue regulations that take effect. Asset income.
- The U.S. Department of the Treasury released the 2024 National Risk Assessment of Money Laundering, Terrorism Financing, and Armed Forces Financing ”, which highlights the risks of illegal fundraising and risks related to virtual assets.
- Since the terrorist attacks on Israel on October 7, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposes fifth round of sanctions against Hamas. The sanctions target a network of Hamas-linked financial exchanges in Gaza that play a key role in the transfer of funds, including cryptocurrency transfers.
- U.S. Treasury Secretary Janet Yellen stated in testimony to Congress that digital assets and crypto-asset platforms and The risks associated with stablecoin runs are one of five focus areas of the FSOC’s ongoing work. She also encouraged Congress to pass legislation to regulate spot markets for stablecoins and non-security crypto assets.
- Graham Steele, assistant secretary of the U.S. Department of the Treasury for Financial Institutions, called on policymakers to “adopt more High Standards" to support "credible innovation" in crypto assets.
- IRS reminds taxpayers that digital assets must be answered when filing 2023 federal income tax returns issue and report all digital asset-related income as they do on their 2022 federal tax returns.
United StatesEnergy Information Administration
- As noted in the quick preview, the EIA received emergency permission for identified crypto mining operations operating in the United States Conduct an ad hoc survey of the company's electricity consumption information. The EIA plans to collect data monthly starting from February to July 2024.
U.S. Securities and Exchange Commission (SEC)
- As noted in the quick preview, the SEC has expanded the definition of “dealer” to include transactions that are regularly offered in the context of trading and market activities A large number of liquid market participants, including those related to digital asset securities. The new definition would likely cover certain crypto businesses, which would be required to register with the SEC, become members of a self-regulatory organization and comply with federal securities laws.
- The SEC delays action against Fidelity, BlackRock, Grayscale) as well as Invesco and < /span>Galaxy DigitalDeadline for a decision on the joint Ethereum ETF proposal.
- TradeStation Crypto, Inc. agrees to pay a $1.5 million fine to the U.S. Securities and Exchange Commission for Addressing allegations that it failed to register the offer and sale of a crypto lending product that allowed U.S. investors to deposit or purchase crypto assets in TradeStation accounts in exchange for the company’s promise to pay interest.
- The founder of American Bitcoin Academy and the U.S. Securities and Exchange Commission (SEC) ) reached a settlement after the SEC accused him of defrauding students into purchasing an online crypto trading course and profiting from more than $1 million through a series of lies about what he called crypto hedge fund investment opportunities.
- The U.S. Securities and Exchange Commission asked a federal court to reject its lawsuit against crypto project Digital Licensing Inc. (also known as DEBT Box), and said its officers "have taken and are taking broader corrective measures" regarding the false statements they allegedly made to the court.
- If Genesis Global Capital Able to repay customers in full in bankruptcy, Genesis Global Capital agreed to pay a $21 million fine to the SEC related to its defunct Gemini Earn Lending program in a settlement. However, the settlement agreement must be approved by the bankruptcy court.
- Financial Industry Regulatory Authority releases updates to its targeted tests launching in November 2022 , to review member firms’ practices for communicating with retail customers regarding cryptoassets. FINRA found potentially material violations in approximately 70% of communications.
International
?? EU
- The European Council and Parliament have reached a provisional agreement on a new anti-money laundering scheme, under which crypto asset service providers must conduct transactions of €1,000 or more. Conducted customer due diligence measures and added measures to mitigate risks from self-hosted wallet transactions.
- European Banking Supervisory Authority expands its guidance on money laundering and terrorism financing risk factors to include Cryptoasset service providers are included.
?? Germany
- German police announced that in the history of A total of 50,000 Bitcoins worth $2.17 billion were seized in the "largest" cryptocurrency seizure.
?? Luxembourg strong>
- Crypto liquidity provider B2C2 announced that it has obtained Regulatory approval to operate in Luxembourg.
?? South Korea
- South Korean authorities arrest cryptocurrency proceeds Three executives of the platform Haru Invest are suspected of stealing approximately $828 million worth of cryptocurrency.
?? Thailand
- Thailand Securities and Exchange Commission orders cryptocurrency exchanges Zipmex suspended its digital asset trading and brokerage services for 15 days, during which it was given an opportunity to "correct its financial condition and operational deficiencies." The commission also brought charges against the former CEO of Zipmex Thailand.
?? United Arab Emirates
- OKX's subsidiary in Dubai The company announced that it received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Asset Regulatory Authority.
?? UK
- Bank of England and HM Treasury have released their response to the digital pound consultation paper. The Bank of England and the UK Treasury have not yet decided to issue a digital pound, but they are committed to ongoing research and design work and have pledged privacy as a "core design feature".
?? United Nations
- A United Nations report discusses Use of cryptocurrencies in casinos, money laundering, underground banking, and transnational organized crime in East and Southeast Asia.
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