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Late last week, federal agencies presented the results of their six-month work on key directions for digital asset regulation in the United States. The resulting first-ever encryption framework, published on the White House website, may not contain many surprises or exact details, but, under President Joe Biden’s executive order, it will in no way affect doubts the political decisions to come.

Perhaps the most important section of the framework is devoted to central bank digital currencies (CBDC). He revealed that the administration has already developed policy goals for a CBDC system in the United States, but further research into the possible technological underpinnings of such a system is needed. Still, the intent seems serious enough as Treasury will lead an interagency task force with participation from the Federal Reserve, National Economic Council, National Security Council, and Office of Science and Technology Policy.

industry did not take the document well, because policymakers’ focus on security and enforcement is all too visible. Kristin Smith, executive director of the US-based Blockchain Association, called it a “missed opportunity to cement US leadership in crypto,” pointing to a focus on risk, not opportunity, and the lack of substantive recommendations on promoting the crypto industry. Speaking to Cointelegraph, Sheila Warren of the Crypto Council for Innovation said the policy recommendations appeared to be based on an “outdated and unbalanced understanding” of crypto, which could leave details to be determined by other lawmakers or the next. administration.

The merger and its regulatory implications

The upgrade from Ethereum to proof of stake (PoS) may have put the cryptocurrency back in the sights of the Securities and Exchange Commission. SEC Chairman Gary Gensler has reportedly said that cryptocurrencies and intermediaries that allow holders to “stake” their crypto can define it as security according to the Howey test. Gensler went on to say that intermediaries offering staking services to their clients “look very similar – with some labeling changes – to loans.” The SEC has previously stated that it has not seen Ether (ETH) as a security, the Commodity Futures Trading Commission (CFTC) and the SEC agreeing that it acted more like a commodity.

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18 Potential Design Shapes for the US CBDC

The Office of Science and Technology Policy has submitted a report analyzing the design choices of 18 central bank digital currency systems for possible implementation in the United States. The technical analysis of the 18 CBDC design choices was conducted across six broad categories: Participants, Governance, Security, Transactions. , data and adjustments. To help policy makers choose the ideal US CBDC system, the OSTP report highlighted the implications of including third parties in both design choices under the “participant” category – transport layer and interoperability. For governance, the report assessed various factors related to permissions, access prioritization, identity privacy, and remediation.

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Thailand Prepares to Ban Crypto Lending

Thailand’s Securities and Exchange Commission (SEC) is preparing to take drastic action following the crypto lending platform crashes that occurred in the summer of 2022. The Thai SEC plans to ban crypto platforms from providing or supporting digital asset custody services. The proposed ban includes several main points. It will prohibit operators from taking a deposit of digital assets with the promise of paying returns to depositors – even if the returns do not come from the growing value of the assets but from the promotional budget. Advertising of loan and deposit services would also be prohibited.

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