All in 1 Week !! Bankruptcy, Bank Runs, AND Seizures
Along w/ International Calls for Stablecoin Regulation, Ukraine seizes Russian Crypto, & Meet David Schweikert (R-AZ)
Tracking the most important developments of the past week for policy, regulation, compliance, and legalities, related to web3. Are you an expert in in Compliance, HR, Legal, Tokenomics, Governance, Accounting, Tax, Policy or Regulation? Apply here!
Key Read: US Treasury on CBDCs
In the Government: 🇺🇸 Send the Treasury your thoughts on crypto regulation, 🌎 International calls for crypto and stablecoin regulation, ðŸ‡ðŸ‡°Â the rise of virtual assets in Hong Kong
In the Courtroom: 🇺🇸 Celsius officially bankrupt, 🇺🇸 SEC gets sued again, 🇺🇦🇷🇺 Ukraine seizes crypto-related Russian assets, 🇺🇸🇯🇵 US pressures Japan on Russian crypto mines
Crypto Political Profile: David Schweikert (R-AZ)
Key Read
US Treasury reports, CBDCs would stabilize the financial system by reducing bank runs.
Standout Quote: “Once a CBDC is introduced, policymakers have a new source of information: the flow of funds into the digital currency."
Translation: CBDCs are tools of government surveillance, allowing them to track and freeze assets at will. They aid events like what happened in China a few weeks back, the country with most prominent and advanced CBDC project to date.
In Government — (Regulation/Policy)
🇺🇸 - Send your Comments on Biden’s Crypto EO to the US Treasury
Anyone can submit an official comment letter by August 8th, writing what you think rules for cryptocurrency industry should look like.
Why this Matters. The US Treasury asking for comments on President Biden’s executive order on cryptocurrency regulation and innovation demonstrates an acknowledgment of the precedent for US to act on Crypto.
🌎 - Financial Stability Board (FSB) Calls for Crypto Regulation
Why this Matters. The FSB, which is composed of all G20 countries, announced this week its plans to propose international crypto and stablecoin regulation by October 2022.
🌎 - Bank for International Settlements Publishes Stablecoin Guidance Report
The report makes several regulatory suggestions, but overall, makes the broad claim that stablecoins should be considered ‘financial market infrastructures’ (FMIs) and thus should be regulated like other FMIs.
Why this Matters. BIS is an international financial institution that recently published a paper on how to apply principles for financial market infrastructures (PFMI) to stablecoins.
ðŸ‡ðŸ‡° - ‘Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022’ Proposed
Supporters suggest this bill will bring a clear and comprehensive regulatory framework to the virtual asset industry, and will ultimately introduce such assets into Hong Kong’s mainstream financial services sector.
Why this Matters. The proposal would introduce licensing for virtual asset service providers (VASPs), with an ultimate goal of promoting anti-money laundering and counter-terrorist financing.
From the Courtroom — (Legal news in web3)
🇺🇸 - Celsius Files for Chapter 11 Bankruptcy
Why this Matters. In previous weeks, Celsius pushed against legal advice to file for Chapter 11 bankruptcy, but Wednesday night was a breaking point for the crypto lender. The firm declared assets and estimated liabilities both between $1 billion and $10 billion, along with more than 100,000 creditors in the court petition.
🇺🇸 - Bitwise to Sue SEC over Bitcoin ETF Rejection
Like Grayscale, Bitwise is considering pursuing legal action against the SEC who rejected their Bitcoin ETF proposal.
Wait for it: Grayscale’s attorneys just noted that litigation against the SEC could take up to 2 years, so we aren’t expecting these ETFs to go anywhere just yet.
🇺🇦 🇷🇺 - Ukraine Seizes Assets from Russia-related Crypto Brokers
Authorities have seized 850,000 Euros, 470,000 USD and 460,000 Ukrainian hryvnia (amounting to about 1.67 million USD in total); 830 kilograms of silver; six pieces of land; and three apartments from over-the-counter (OTC) brokers.
Why this Matters. This bounty was allegedly sourced from OTC brokers making illegal crypto trades on the behalf of Russian users.
🇺🇸 🇯🇵 - US Urges Japan to Put Pressure on Russia-Related Crypto Miners and Exchanges
In Japan, several crypto exchanges have continued conducting business in Siberia since Ukraine was invaded, despite Japan’s demand for exchanges to monitor transactions involving sanctioned people and entities.
More Russia: The US has recently requested that these crypto exchanges and mining facilities cut their ties to the Russian region.
Crypto Candidate in the Upcoming AZ (Aug. 2nd) Republican Primary
Up to midterms, Twali Wrapped will be profiling crypto-friendly candidates either from the nearest, upcoming primaries or politicians with significant support of crypto. This week meet:
Sources for Background, for Policy Goals, & for Legislation.