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Kennedy Backs CLARITY Act, Paving Senate Path for Crypto Rules
13 days ago•Source: BeInCrypto
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12.065 min•1 month ago
SEC Clarifies When Crypto Trade Interfaces Can Operate Without Broker-Dealer Registration
SEC staff provide an interim view that a Covered User Interface Provider (e.g., a self-custodial wallet with a crypto asset securities UI) may operate without registering as a broker-dealer under Section 15(a) if it does not solicit investors, offers objective execution routes, discloses affiliations and material risks, uses a fixed fee, and maintains policies to evaluate venues and parameters; the guidance outlines disclosure requirements and is open for public comment, expiring five years from April 13, 2026.
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Prediction Markets Enter a High-Stakes Regulatory War
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Regulatory Roadblocks Hinder Economic Theory Testing and Political Betting Platform
The U.S. Commodity Futures Trading Commission (CFTC) has rejected a proposal by prediction market Kalshi to introduce a derivative contract tied to congressional elections, citing concerns about becoming an "election cop" and the potential for gambling on elections. The CFTC's decision reflects its consistent stance against election betting, as seen in previous rejections of similar applications. While there are arguments against prediction markets in elections, proponents argue that they provide valuable data for political scientists and could tap into the concept of crowdsourcing truth. However, the CFTC's decision raises concerns that it is stifling the prediction markets industry before it can fully develop.
FTC Antitrust Suit Against Amazon Heads to Court as Negotiations Reach Deadlock
The Federal Trade Commission (FTC) is preparing to file a lawsuit against Amazon later this month after the e-commerce giant's officials failed to offer any concessions in settlement talks over antitrust claims. The FTC has been examining Amazon's practices, including allegations of favoring its own products over competitors' and how it treats outside sellers on its platform.
SEC's Crackdown on Binance and Coinbase Sends Shockwaves Through Crypto Industry.
The SEC has requested permission from the District of Columbia Court to freeze the assets of BAM Trading and BAM Management, the companies operating as Binance.US, and serve Binance CEO Changpeng Zhao via unspecified non-traditional methods. The SEC is seeking to "repatriate and freeze" the assets of BAM Management and BAM Trading and compel the firms to provide full accounting information and refrain from concealing or destroying any relevant documents. Earlier this month, the SEC sued Binance for allegedly violating securities laws and filed a motion to freeze the assets of BAM Trading and BAM Management.
Crypto Regulation Efforts Intensify in U.S. Congress
US Senator Cynthia Lummis is working on a regulatory framework that would enable individuals and companies to own and trade digital assets within the United States. Working alongside Senator Kirsten Gillibrand, Lummis has been working on a revamped bipartisan effort to introduce comprehensive regulations for cryptocurrencies. The forthcoming bill primarily seeks to define cryptocurrencies while potentially removing the “security” tag associated with them. Additionally, the proposed legislation will supposedly impose a universal ban on algorithmic stablecoins although further deliberations are necessary to determine the entities authorized to issue stablecoins and the requirements associated for maintaining their USD reserves.
CFTC Victorious in Lawsuit Against Ooki DAO.
The U.S. Commodity Futures Trading Commission (CFTC) has won a lawsuit against decentralized autonomous organization (DAO) Ooki DAO, which allegedly offered unregistered commodities. The judge ruled that Ooki DAO operated an illegal trading platform and unlawfully acted as an unregistered futures commission merchant (FCM), ordering the organization to pay $643,542 in penalty and permanently cease its operations. This ruling challenges the perception that DeFi actors are immune to regulatory scrutiny.
SEC Denies Coinbase's Request for Crypto-Specific Rules, Urges Enforcement Actions Instead.
The US Securities and Exchange Commission (SEC) has told an appeals court that Coinbase has not provided sufficient evidence to justify the creation of a new regulatory framework for the digital asset industry. Coinbase had filed a petition with the SEC in July 2022, asking for guidance around digital assets. The SEC has not yet made a decision on the petition and "continues to consider" the filing, the regulator said in a filing. The SEC also noted that considering new rules or amendments to existing regulations does not preclude it from enforcing existing regulations.
Criticism Mounts Against SEC's Proposed Crypto Custody Rule Changes
The SEC's proposed rule demanding investment firms safeguard all of their clients' assets, including crypto, with approved custodians has drawn criticism from financial giant JPMorgan, the Small Business Administration, and the crypto sector. The proposed rule said any assets entrusted to investment advisers need to be held with "qualified custodians," which generally means a chartered bank or trust company, a broker-dealer registered with the SEC, or a futures commission merchant registered with the Commodity Futures Trading Commission. The SEC's Chair, Gary Gensler, said the rule would help ensure that advisers don't inappropriately use, lose, or abuse investors' assets.
New York Proposes 'Landmark' Crypto Law for Strongest Regulations in US
New York State Attorney General Letitia James has proposed a "landmark" crypto legislation that claims to be "the strongest and most comprehensive set of regulations on cryptocurrency" in the United States. The proposed bill, called the "Crypto Regulation, Protection, Transparency, and Oversight (CRPTO) Act," would increase transparency, eliminate conflicts of interest, and impose measures to protect investors, consistent with regulations imposed on other financial services. The bill would also require independent public audits of cryptocurrency exchanges, strengthen the New York State Department of Financial Services' regulatory authority of digital assets, and bolster investor protections by enacting and codifying "know-your-customer" provisions.
"New York Attorney General Proposes Comprehensive Crypto Regulations"
New York Attorney General Letitia James has proposed a new set of state crypto regulations that would increase transparency and enhance investor protections in the digital asset sector. The proposed legislation would implement public audit requirements for crypto exchanges, reduce conflict-of-interest issues, require reimbursement for victims of fraudulent transfers, and ban the use of the word “stablecoin” to describe digital assets that aren’t backed up on a 1:1 basis by dollars or other high-quality liquid assets. James says her office will submit the bill to New York state lawmakers for consideration in the ongoing legislative session.
NY Attorney General Proposes Crypto Regulation Bill to Combat Fraud and Dysfunction
New York Attorney General Letitia James has proposed a bill that would give the New York Department of Financial Services stronger authority to regulate digital assets, including the power to shut down businesses engaging in fraud and illegality. The legislation seeks to ban marketplaces from keeping custody of customer funds and would require exchanges to reimburse customers if they are victims of fraud. The bill also targets a range of stakeholders from crypto issuers and exchange platforms to digital asset influencers, with all to be held to detailed disclosure requirements. The proposed legislation must still be passed by state lawmakers to become state law.