Reaching Across the Aisle? Everyone's Doing it!
Along w/ 🇺🇸 CFTC rebrands OTI to focus on Crypto, 🇺🇸 Kraken violates Sanctions, & meet Two Pro-Crypto Republican Candidates in Early Aug. Primaries.
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Key Read
CBDC and Stablecoins Will Coexist.
Blockworks differentiates CBDCs (“issued directly by governing authorities [with no] reserve requirements”) from Stablecoins (“digital tokens that offer price stability through a 1:1 backing to fiat”), mentioning how regulation may determine where the arena of one begins and the other ends.
Where We’re At: With 90% of central banks researching CBDCs, 65% of which expect to issue one directly to consumers and businesses soon, experts still think Stablecoins reign in retail since central banks “don’t want to deal with the retail universe.”
In Government — (Web3 Regulation/Policy News)
🇺🇸 - Bipartisan Bill Proposed Exempting Small Crypto Transactions from Taxes
Senators Pat Toomey (R-PA) and Kyrsten Sinema (D-AZ) introduced the Virtual Currency Tax Fairness Act that would exempt small crypto transactions (up to $50 USD with a stipulation for inflation) from capital gains taxes.
Why this Matters. The bill has gained support from prominent crypto-lobbying groups such as Coin Center, the Blockchain Association and the Association for Digital Asset Markets (ADAM).
Want to read more about these organizations? Read Twali Organization Profiles on the Blockchain Association and ADAM.
🇺🇸 - CFTC Announces new Office of Technology Innovation to Focus on Crypto.
The US Commodities and Futures Trading Commission (CFTC) announced that their existing fintech team will be rebranded as the Office of Technology Innovation (OTI), focusing on incorporating innovation and tech into crypto regulatory oversight.
Why this Matters. The rebranding was partly initiated by the Lummis-Gillibrand Crypto Bill and partly by the massive rise in calls for crypto regulation, which has placed much crypto regulatory responsibility squarely in the hands of the CFTC.
Key Quote: from CFTF Chairman Rostin Behnam, “We are past the incubator stage, and digital assets and decentralized financial technologies have outgrown their sandboxes.”
🇺🇸 - Bipartisan Stablecoin Bill Delayed
Discussion on stablecoin regulation from Rep. Maxine Waters (D-CA) and Rep. Patrick T. McHenry (R-NC) has been delayed until the end of September. While draft legislation has yet to be published, it limits who can issue digital tokens to banks, and sets rules for backing stablecoins with liquid assets.
Why this Matters. To regulators, stablecoins are dangerous market players that threaten financial stability. The balance to passing any legislation lies in bipartisan efforts—a trend we’re seeing in crypto regulation beyond stablecoins.
Take Them to Court — (Web3 Legal News)
🇺🇸 - Coinbase Faces SEC Probe Following Insider Trading Case.
A Bloomberg report announced that the SEC is investigating Coinbase for offering unregistered securities through the exchange. Coinbase has not responded, and the SEC’s investigation is not public.
Why this Matters. This new probe comes right after Coinbase was charged with an insider trading case, and the aftermath has been a sharp fall in Coinbase shares.
🇺🇸 - Kraken Under Fire for Violating Sanctions.
Kraken, a US crypto exchange, is being investigated by the Treasury Department for violating sanctions against users in Iran, Cuba and Syria. If found guilty, Kraken is expected to be fined for the violations.
Why this Matters. How decentralized can crypto be in practice while sanctions still govern global trade and relations? For many crypto exchanges, not much. But Kraken has been steadfast against sanctions in the past (resisting calls to freeze Russian accounts in February 2022), so only time will tell how the investigation will affect business.
🇺🇸 - Titanium Blockchain CEO Pleads Guilty to ICO Scam.
The SEC claims that Michael Stollery, CEO of the Titanium blockchain, lied about business relationships with the Federal Reserve and firms to boost Titanium’s Initial Coin Offering (ICO). Stollery is pleading guilty.
Why this Matters. Flashback to when the SEC publicly accepted bitcoin as a commodity, this lawsuit emphasizes, and strengthens, the SEC’s stance that altcoins should be regulated as securities.
Fun Fact. Payment of claims for this case can be received in ETH.
Two Republicans for our Upcoming Primaries
by Justine Doughty (Blake Masters) & Max Moncaster (Jerrod Sessler)
Up to midterms, Wrapped will be profiling candidates welcoming of crypto either from recent or upcoming primaries or politicians with significant support of crypto. Since last week our guild covered two Democrats, this week we cover two Republicans.
Meet: Blake Masters (Aug. 2nd - Arizona) and Jerrod Sessler (Aug. 2nd - Washington)
Sources for Blake Masters:
*Centralization Ruins the Purpose and Freedom of Crypto
Sources for Jerrod Sessler: