The Regulatory State #27 - 4/4/22
EU lawmakers vote to extend additional AML provisions to crypto and outlaw anonymous wallet transactions, extending the Travel Rule, and effectively ending anonymity across crypto (in Europe). This puts KYC offerings and premissioned protocols in the driver seat (anticipated) and will take some time to implement with the practical effect being protocols and wallet based transactions will have to verify who is on the other side of the transaction.
EU Parliament Passes Privacy-Busting Crypto Rules Despite Industry Criticism (CoinDesk)
European Union Proposes Crackdown on Non-Custodial Crypto Wallets (Decrypt)
SEC quietly proposes a 200+ page proposal that extends the definition of regulated “dealers” to include passive market makers and liquidity providers, broadly seen as a direct attack on decentralized finance without explicitly referencing it.
How the SEC Proposal to Change One Definition Could 'Kill' DeFi(Decrypt)
Jake Chervinsky: “The SEC just proposed a rule that would expand the definition of regulated "dealers" to include people who "employ passive market making strategies" that have "the effect of providing liquidity" to others.”
Gabriel Shapiro: “it's an all-out shadow attack on decentralized finance”
SEC will require crypto exchanges to report, on balance sheet, the crypto holdings held on behalf of customers, in an effort to drive further transparency and ultimately drive risk management requirements.
SEC Tells Exchanges to Treat Customer Crypto Holdings as Liabilities (WSJ)
US Companies Must Disclose Customer Crypto Holdings, Says SEC (Decrypt)
SEC Leans on Crypto Firms to Report Assets Held for Customers (Bloomberg)
Global regulatory parity is entering a phase of hyperdrive, as large crypto-native institutions are entering regulated paradigms, sanctions enforcement is accelerating global regulatory coordination, and lawmakers are doubling down on CBDC ambitions.
Kraken Hits Key Milestone in Quest to Gain Fed Account, Equal Treatment With Traditional Banks (CoinDesk)
Grayscale’s Fight for a Bitcoin ETF Could End in Lawsuit Against SEC (Bloomberg)
USDC Reserves Will Be Custodied With BNY Mellon, Says Circle (Decrypt)
EU Seeks to Speed Up Crypto Rules in Push to Tighten Sanctions (Bloomberg)
Russia Sanctions Could Spur Use of Crypto: IMF's Gopinath (CoinDesk)
Wall Street Watchdog Cautions Banks on Trading Crypto Derivatives (CoinDesk)
Elizabeth Warren Calls for US to Create a CBDC (CoinDesk)
The information above does not constitute an offer to sell digital assets or a solicitation of an offer to buy digital assets. None of the information here is a recommendation to invest in any securities.