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Coinbase CEO Brian Armstrong Celebrates House Victory for Clear Crypto Regulation

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6 months ago

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The House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking a significant step in cryptocurrency regulation. Coinbase CEO Brian Armstrong hailed this victory, emphasizing the importance of clear and sensible crypto rules. With 71 Democrats voting in favor, surpassing expectations, the legislation now heads to the Senate.

Brian Armstrong Celebrates Historic FIT21 House Vote

According to Armstrong, this House approval of FIT21 is a “historic vote.” He believes this decision will establish clear rules to regulate cryptocurrency if it becomes law. Armstrong stressed that Americans want their representatives to protect their rights to use crypto. He added that they also seek clear rules to safeguard consumers, preventing the lack of clarity from being used by a few activists to target the industry unlawfully.

 

Brian Armstrong also highlighted the role of Stand With Crypto, a crypto advocacy group initiated by Coinbase. This group aims to support the push for sensible regulation in the crypto space. The House vote represents a rejection of efforts to undermine crypto technology, according to Armstrong. He expressed confidence that voters would remember this outcome.

 

The passage of FIT21 in the House is only the first step. The legislation now moves to the Senate for consideration. However, the Biden administration opposes the bill, arguing it lacks adequate protections for digital asset investors and consumers. This opposition could pose a challenge as the Senate debates the legislation.

 

Despite this, the White House has stated it will not issue a veto threat against FIT21 if it passes the House. This position leaves room for potential negotiation and compromise as the bill progresses. The Senate’s decision will be crucial in determining the future of crypto regulation in the United States.

Coinbase Pushes for Clear Crypto Regulations

In June 2023, the Securities and Exchange Commission (SEC) sued Coinbase for allegedly violating securities law. The lawsuit named 13 cryptocurrencies, including Solana and Cardano, as securities. This legal action followed the SEC’s issuance of a Wells notice against Coinbase in March of the same year.

Coinbase has consistently argued for clearer rules regarding digital asset regulation. In March 2024, the company asked an appeals court to direct the SEC to create a robust crypto regulatory framework. Coinbase contended that the SEC‘s avoidance of rulemaking violated the Administrative Procedures Act. The House’s approval of FIT21 aligns with Coinbase’s long-standing call for regulatory clarity.

Despite the bill’s passage, not all lawmakers are in favor. US House Ranking Member Maxine Waters criticized the bill, stating it is not fit for purpose and could create significant loopholes. Other Democrats also voiced opposition to the crypto bill, echoing concerns about potential gaps in investor protection.

Also Read: SEC Files Updates For BlackRock, Fidelity, and Other Ethereum ETFs

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

US Court Rules Tornado Cash Smart Contracts Not Property, Lifts Ban

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4 hours ago

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November 27, 2024

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A U.S. appeals court has ruled that the Treasury Department’s Office of Foreign Assets Control (OFAC) exceeded its authority by sanctioning Tornado Cash’s immutable smart contracts. This decision overturns earlier actions taken by OFAC and removes Tornado Cash’s smart contracts from the sanctions list, allowing U.S. citizens to resume their use of the protocol.

US Court Rules Tornado Cash Smart Contracts Not Property

On November 26, the Fifth Circuit Court of Appeals delivered a key ruling on the legality of sanctions imposed on Tornado Cash by OFAC. The court found that the sanctions were unlawful because Tornado Cash’s smart contracts, as immutable open-source code, cannot be owned or controlled by any entity or individual.

“We hold that Tornado Cash’s immutable smart contracts (the lines of privacy-enabling software code) are not the ‘property’ of a foreign national or entity,” the three-judge panel stated in its decision. The court explained that under the International Emergency Economic Powers Act (IEEPA), OFAC is only authorized to sanction property owned or controlled by foreign persons, which does not apply to the autonomous smart contracts.

The court directed a Texas district court to grant a motion for partial summary judgment filed by the plaintiffs, led by Joseph Van Loon, challenging the sanctions.

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Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Donald Trump Plans To Give CFTC Oversight of $3T Crypto Market

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5 hours ago

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November 27, 2024

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The incoming Donald Trump administration is considering expanding the regulatory authority of the Commodity Futures Trading Commission (CFTC) to cover the $3 trillion digital asset market. This potential move is part of an initiative to reshape financial regulations in the U.S. under President-elect Trump. The decision could mark a major shift in how the crypto market is regulated.

Donald Trump Administration Eyes CFTC To Oversee Digital Asset Regulation

According to a Fox Business report, Donald Trump’s administration is looking to increase the regulatory reach of the CFTC by granting the agency oversight of the growing digital asset market. The proposal would specifically target digital assets such as Bitcoin and Ethereum, which are considered commodities under current law. If the plan moves forward, the CFTC would gain the authority to regulate the spot markets and exchanges.

Currently, the Commodity Futures Trading Commission oversees U.S. derivatives markets, including futures and options on commodities like oil and gold. However, the commission has not been responsible for regulating the digital asset spot markets. This move will grant the regulatory body new authority to enforce rules and ensure fair trading practices. 

The decision is part of Donald Trump’s effort to reduce cryptocurrency regulatory burdens on the industry while providing clearer oversight.

Challenges of Expanding CFTC Role in Crypto Regulation

However, the current budget of the CFTC is much smaller than that of the Securities and Exchange Commission (SEC). The Commodity Futures Trading Commission’s 2024 budget is roughly $400 million, compared to the SEC’s budget of $2.4 billion. This discrepancy is a challenge to the agency’s ability to oversee a $3 trillion market effectively. 

In addition, the CFTC employs only around 700 staff members, compared to the SEC’s 5,300 employees. This limited capacity could require additional funding and resources if the commission is tasked with overseeing digital asset transactions.

Former CFTC Chair Chris Giancarlo supports stronger crypto regulation and backs the agency’s expanded role. Giancarlo argued that the commission has been involved in crypto markets since 2015, when it recognized Bitcoin as a commodity. Giancarlo has suggested that, with proper funding and leadership, the regulatory commission could regulate digital commodities.

Also known as “Crypto Dad” for his progressive stance on blockchain and digital currencies, Giancarlo is a frontrunner for the proposed White House crypto czar role under Donald Trump. The role will streamline crypto regulations and promote blockchain development.

Under Giancarlo’s leadership, the commission approved the trading of Bitcoin futures, further cementing its role in overseeing the digital currency space. 

In addition to overseeing the spot market, the regulatory body would also have the authority to regulate crypto exchanges, which are critical to the market. 

Many in the crypto industry have voiced frustration with the SEC’s approach, which has led SEC chair Gary Gensler to announce his resignation on January 20, 2025. As a result, Donald Trump’s push for the CFTC to lead has garnered support from the crypto sector.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Morocco reconsidering its crypto ban, drafting crypto regulations

Published

12 hours ago

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November 26, 2024

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Morocco reconsidering its crypto ban, drafting crypto regulations
  • Morocco is drafting new crypto regulations to reverse its 2017 digital asset ban.
  • Morocco’s central bank is exploring the creation of a central bank digital currency (CBDC).
  • Global trends show more countries, like the UK and EU, moving toward crypto regulation.

Morocco is reconsidering its stance on cryptocurrencies, with plans to reverse a 2017 ban on digital assets and introduce comprehensive regulatory frameworks.

Morocco’s central bank, Bank Al-Maghrib, is currently drafting new legislation aimed at regulating digital currencies, signalling a significant shift in the government’s approach to cryptocurrencies.

Abdellatif Jouahri, the governor of the central bank, confirmed that the new draft law is under review and could soon be adopted. The law is part of Morocco’s strategy to regulate cryptocurrencies more effectively in response to growing interest and adoption, despite the initial ban.

By late 2023, nearly 5% of Moroccans were using digital assets, highlighting the widespread use of cryptocurrencies, even in the face of prohibitive laws.

The move comes at a time of rising global interest in cryptocurrencies, with Bitcoin nearing the milestone of $100,000, further fueling global crypto discussions.

Morocco considering creating a CBDC

In addition to legalizing cryptocurrencies, the country is exploring the possibility of creating a central bank digital currency (CBDC).

The central bank’s governor revealed that the central bank is assessing how a CBDC could support public policy objectives, such as promoting financial inclusion, by offering a regulated and secure digital currency alternative.

The global momentum towards clearer crypto regulations

As Morocco moves closer to legalizing cryptocurrencies, the country joins a global wave of nations embracing digital assets.

The European Union’s Markets in Crypto-Assets Regulation (MiCA), expected to be implemented by the end of 2024, and the UK, which plans to introduce a comprehensive crypto regulatory framework in early 2025, are just some examples of nations that are creating regulatory clarity in the digital finance space.

These steps suggest a future where the digital finance landscape is more structured, secure, and conducive to innovation, providing clearer guidelines for investors and businesses in the crypto market.

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