Regulation
Despite Warren’s Concerns, Senate Passes Crypto Bill Allowing Banks to Hold Bitcoin
U.S. Senator Elizabeth Warren has called on the Senate to vote against proposed legislation allowing highly regulated financial firms to provide custody services for Bitcoin (BTC) and other cryptocurrencies. Her opposition stems from concerns over the safety and security of digital assets in the hands of financial institutions. This call comes amid a broader debate on how cryptocurrencies should be integrated into the financial system.
Elizabeth Warren Urges NO Vote on Crypto Bill
Senator Warren has long criticized digital assets, linking them to terrorism and misconduct. Last month, she enacted a letter highlighting concerns over stablecoins and their potential exploitation by terrorist organizations and rogue nations. She believes that placing digital assets in the hands of financial institutions could pose significant risks to their safety and security. According to Elizabeth Warren, the lack of robust regulatory frameworks around digital assets makes them susceptible to misuse and fraud, further endangering the financial system.
Her stance is rooted in the belief that digital assets, while innovative, require stringent oversight to prevent illicit activities. The senator’s call for a NO vote on the legislation reflects her broader skepticism towards cryptocurrencies and their integration into the mainstream financial sector. She argues that without adequate safeguards, the financial system could be exposed to new vulnerabilities, potentially leading to significant financial instability.
Senate Passes Crypto Custody Bill
However, Senator Warren’s position has faced significant opposition. Fellow Senator Cynthia Lummis urged the Senate to vote YES on the legislation, arguing that highly regulated financial firms are the safest custodians for digital assets. Lummis stated that financial institutions have the necessary infrastructure and experience to manage digital assets, thereby protecting investors securely.
In addition, XRP pro-crypto lawyer John Deaton criticized Warren’s focus on digital assets, suggesting it was a misplaced priority. Deaton argued that Massachusetts faces several pressing issues, such as illegal immigration, deficit spending, and income inequality, which should take precedence over the regulation of cryptocurrencies. He contended that Warren’s efforts were more aligned with the interests of the banking industry than with addressing the state’s immediate concerns.
Despite Senator Warren’s call to action, the Senate voted to repeal Gensler’s anti-crypto rule SAB121, with 51 votes in favor. Key Democratic senators broke party lines to support the repeal. The decision now rests with President Biden, who must choose whether to veto the legislation or let it pass.
The president’s decision carries significant political implications. A veto could align him with anti-crypto sentiments, potentially alienating pro-crypto voters and industry stakeholders. On the other hand, allowing the legislation to pass is a move towards modernizing the financial system and embracing technological innovation. This decision is critical as it could influence voter sentiment in the upcoming election, making it a pivotal moment for the Biden administration.
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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.
The U.S. House will vote next week to overturn President Joe Biden’s veto of Staff Accounting Bulletin 121, also known as SAB 121. The bulletin has stirred controversy in the crypto industry. It mandates that firms custodying crypto record customer holdings as liabilities.
House Majority Leader Steve Scalise indicated the vote might occur on Tuesday or Wednesday. Following the veto, the vote is a constitutional obligation. The measure previously passed the House with a 228-182 vote.
Bipartisan Push to Overturn SAB 121 Veto
SAB 121 requires firms holding crypto assets for customers to list these as liabilities. This rule has raised concerns among banks and the crypto industry. They argue it could hinder their ability to safeguard digital assets.
The resolution to overturn SAB 121 has seen bipartisan support. In May, the Senate passed it with a 60-38 vote, including support from Senate Majority Leader Chuck Schumer. However, overturning a veto requires a two-thirds majority in the House and Senate.
From venture capital firm Paradigm, Alexander Grieve noted the challenge but saw potential. “Remember when Biden vetoed the SAB121 rollback? It’s back on the House floor next week.” He pointed out the previous bipartisan support for the FIT21 crypto market structure bill.
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Challenges Mount in Overturning Crypto Rule Veto
Despite bipartisan support, overturning the veto remains challenging. The House needs 290 votes, 60 more than the initial 228 votes in favor. Cody Carbone from the Chamber of Digital Commerce expressed doubts about reaching this threshold.
Carbone emphasized the difficulty of changing 60 members’ minds in a week. He acknowledged the efforts for consumer protection and good governance. However, he believes the attempt to override the veto will ultimately fail.
The crypto industry remains hopeful but realistic about the upcoming vote. They recognize the steep hill to climb to overturn the veto. The focus now is on rallying additional support in the House.
The outcome of the vote has significant implications for the crypto industry. If the veto is overturned, it could ease concerns about banks’ ability to safeguard digital assets. Conversely, if it stands, firms may need help complying with SAB 121.
The crypto industry has been vocal about its concerns. They argue that the rule could stifle innovation and hinder the growth of digital assets. The upcoming vote is crucial for determining the regulatory landscape for crypto.
Supporters of overturning the veto emphasize the importance of flexibility for financial institutions. They argue that SAB 121 imposes undue burdens on firms holding crypto assets. The vote will be a crucial indicator of congressional support for the crypto industry.
Also Read: Venezuela’s Digital Asset Remittances Hit Yearly $460 Million
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.
- Starting Monday, July 8th, Kucoin will charge a 7.5% tax on all transactions made by users registered in Nigeria.
- This decision comes from a regulatory update from the Nigerian SEC.
Kucoin exchange took to Twitter (X) to announce that starting Monday, July 8th, Nigerian users will be charged a 7.5% value-added tax on all transactions. This move, spurred by the Nigerian SEC’s regulatory actions, comes a month after the regulator asked all crypto exchanges and businesses to re-register or risk enforcement action.
This levy may be a sign that the Nigerian SEC is at the early stages of recognising cryptocurrencies, three years after the country’s Central Bank ordered banks to stop transacting with cryptos either for themselves or corporate entities.
The Nigerian government has tried to impose a 10% levy on crypto transactions through the 2023 Finance Act but was unable to enforce it due largely to regulatory opacity.
While the SEC Chairman Emomotimi Agama has not commented on the new tax, the regulator admits that this new rule is part of its plan to regulate crypto.
In a court hearing in Abuja, Nigerian authorities intensified their legal battle against the cryptocurrency exchange Binance. Central Bank officials testified that Binance operated without a license, which aligns with allegations of facilitating illegal transactions on its platform.
Binance Accused of Unlicensed Operations in Nigeria
Olubukola Akinwunmi, a key figure from Nigeria’s central bank, claimed Binance had no authority to enable cryptocurrency trades in Nigeria. The lack of a formal license emerged as a significant point during the court proceedings. The Economic and Financial Crimes Commission leveraged this point, underscoring potential legal violations by Binance.
Akinwunmi explained that Binance’s services equated to a money brokerage requiring specific regulatory approval. He highlighted the peer-to-peer platform’s ability to exchange naira for other fiat currencies. Such operations typically necessitate central bank authorization as a recognized exchange or a bureau de change.
Moreover, the central bank official criticized Binance for allowing pseudonymous trading on its platform. Despite Binance’s stringent identity verification measures for Nigerian users, these practices have been questioned. Binance mandates local banking details and government-issued IDs for Nigerian traders.
Also Read: Venezuela’s Digital Asset Remittances Hit Yearly $460 Million
Gambaryan’s Health Ignored by Nigerian Officials
Tigran Gambaryan, Binance’s US-based compliance executive, faces charges alongside the firm. Since his arrest in February, Gambaryan has been held at Kuje Prison and has encountered severe health issues, including malaria and pneumonia. His condition worsened, leading to a collapse at the trial’s outset in May.
Despite a judicial order for medical attention, prison officials delayed compliance, only conducting tests weeks later. The results have not been disclosed to Gambaryan’s defense team. This neglect sparked criticism from Justice Emeka Nwite, who admonished the prosecution and prison authorities for disregarding his directives.
Justice Nwite warned of consequences if the medical reports are not presented by the next court date, set for July 16. Meanwhile, prison officials have dismissed allegations of mistreatment, asserting that Gambaryan is not in a severe health condition. The ongoing trial has drawn attention to the broader implications of cryptocurrency regulation in Nigeria.
Following these legal challenges, Binance ceased its operations for Nigerian users, affecting an estimated 13 million customers. The sudden withdrawal has left many seeking alternative trading platforms.
Also Read: Multicoin Capital To Fund Crypto-Friendly US Candidates In Solana
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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