At the end of last week, the federal agencies presented the results of their six-month work on the main directions for the regulation of digital assets in the United States. The resulting first cryptocurrency framework, posted on the White House website, may not contain many surprises or exact details, but as part of President Joe Biden’s executive order, it will certainly affect political decisions made in the country. the future.
Perhaps the most important section of the framework is devoted to central bank digital currencies (CBDCs). In her it is revealed that the administration has already developed policy objectives for a US CBDC system, but more research is needed on the possible technological basis of such a system. Still, the intent seems pretty serious, as Treasury will lead an interagency task force with participation from the Federal Reserve, the National Economic Council, the National Security Council, and the Office of Science and Technology Policy.
The document has not been taken well by the industry as policy makers’ focus on security and law enforcement is too visible. Kristin Smith, CEO of the US-based Blockchain Association, called it “a missed opportunity to cement America’s leadership in crypto,” noting its heavy emphasis on risks, not opportunities. , and the lack of substantive recommendations on the promotion of the cryptocurrency industry. Speaking to Cointelegraph, Sheila Warren of the Crypto Council for Innovation said that the policy recommendations appeared to be based on an “outdated and unbalanced understanding” of cryptocurrencies, which could leave the details to be determined by other lawmakers or the next administration. .
The merger and its regulatory implications
Ethereum’s upgrade to proof-of-stake (PoS) may have put the cryptocurrency back in the Securities and Exchange Commission’s (SEC) crosshairs. SEC Chairman Gary Gensler has said that cryptocurrencies and intermediaries that allow holders to “stake” their cryptocurrencies can define it as a security under the Howey test. Gensler went on to say that intermediaries offering staking services to their clients “look a lot like — with some labeling changes — loans.” The SEC has previously said that they did not view Ether (ETH) as a security, with the Commodity Futures Trading Commission (CFTC) and the SEC agreeing that it acted more like a commodity.
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18 possible ways to design the American CBDC
The Office of Science and Technology Policy presented a report analyzing the design options of 18 central bank digital currency systems for their possible implementation in the US. The technical analysis of the 18 CBDC design options was carried out in six broad categories: participants, governance, security, transactions, data and adjustments.. To help policymakers decide on the ideal CBDC system in the US, the OSTP report highlighted the implications of including third parties in the two design options of the “participant” category: transport layer and interoperability. When it comes to governance, the report weighed various factors related to permissions, access prioritization, identity privacy, and remediation.
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Thailand Prepares to Ban Crypto Loans
The Thai Securities and Exchange Commission (SEC) is preparing to take sweeping action in the wake of the crashes crypto lending platforms experienced in the summer of 2022. The Thai SEC plans to ban cryptocurrency platforms from providing or supporting digital asset deposit services. The planned ban includes several main points. It will prohibit operators from accepting a deposit of digital assets with the promise of paying returns to depositors, even if the returns come not from the increasing value of the assets but from the promotion budget. The advertising of loan and deposit services will also be prohibited.
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.