The long-awaited markup of the stablecoin and market structure bills by the House Financial Services Committee will been moved as Politico’s Eleanor Mueller reports, “staffers received another email Friday informing them that the markup would take place on July 26 instead.” Read a bit more.
Separately, Politico notes that House Agriculture Chair Glenn Thompson (R, PA) wants his committee to engage in a markup of the market structure bill “before August recess.” Republicans are hoping they can get more Democratic support on the market structure bill given last week’s Ripple/XRP decision, too, says the publication.
The Financial Stability Board (FSB) announced yesterday that it has finalized its “global regulatory framework for crypto-asset activities.” Get it.
As Cointelegraph notes, “The framework consists of two distinct sets of recommendations: ‘High-level recommendations for the regulation, supervision and oversight of crypto-asset activities and markets;’ and ‘Revised high-level recommendations for the regulation, supervision, and oversight of “global stablecoin” arrangements.'” Read more.
The FSB’s framework has likely had plenty of U.S. input from the FSB’s three U.S. board members: the Federal Reserve Vice Chair Michael Barr, Securities and Exchange Commission (SEC) Chair Gary Gensler and Treasury Undersecretary Nellie Liang.
After announcing the new framework yesterday, FSB Secretary General John Schindler sounded a lot like Chair Gensler telling reporters, “… cryptoasset players need to stop operating outside the regulatory perimeter or in non-compliance with existing rules. (…) These players can no longer argue there is a lack of regulatory clarity, as our framework makes clear the standards that should apply.” Read more in Reuters.
accounting for crypto
In a Twitter thread critical of the SEC’s approach to digital assets regulation, Castle Island venture capitalist, Matt Walsh, points to the impact of Staff Accounting Bulletin No. 121 (SAB 121) which he says “prevents major banks from touching crypto in the United States.” Read his thread.
Moreover, Walsh points to a June 28 American Banker article that appears to show SAB 121 “preventing BNY [Mellon]’s custody offering from getting off the ground. When the bank sought the approval from NYDFS to operate they were operating under the assumption that this line of business would operate like all other asset classes.” Read the June 28 American Banker piece.
Chair Gary Gensler Defends SEC on Perceived Gap Between Crypto and Today’s Accounting Rules – blockchain tipsheet (July, 2022)
Looking for a quick blast on stablecoins? Congressional Research Service (CRS) issued a new report on July 12 just in time for the stablecoin bill percolating in the House Financial Services Committee. Titled, “Stablecoin Policy Issues for the 118th Congress,” it’s written by former Federal Reserve Bank analyst, Paul Tierno, who has authored several digital assets reports for CRS.
He begins with the basics: “Many stablecoins have different operational structures and reserve compositions…Reserve assets backing stablecoins could include fiat currencies, traditional financial assets, or..” Read the rest.
Alex Grieve, formerly of government relations firm Tiger Hill, has joined venture investment firm Paradigm where he’ll lead government relations. Grieve told Axios, “I’m thrilled to be joining Paradigm at this critical juncture in crypto policy. Given the Ripple decision last week, and the legislative momentum on Capitol Hill, it is clear the industry’s efforts are paying off.” Read a bit more.
Much has been made of non-U.S. jurisdictions embracing digital asset regulatory frameworks in hopes of getting a headstart on the benefits of the emerging industry. But, The Wall Street Journal finds not all local banks – such as those in Hong Kong – are on board. One Hong Kong company pays salaries from its crypto income, but must first transfer some of its crypto overseas, convert it to a foreign fiat currency and then sends it to a Hong Kong bank to cover it again to local currency and get into the hands of employees. The WSJ says, “This added step is because the company’s Hong Kong banks won’t accept funds directly sourced from crypto.” Read more.
still more tips
Despite BlackRock, Don’t Expect a Flood of Spot-Bitcoin ETFs Soon: Experts – CoinDesk
“Crypto. Here for Good.” – Showcasing crypto use cases and all the good that crypto enables – Blockchain Association
SEC’s Gensler Says He’s Disappointed With Ripple Ruling on Retail Investors – Bloomberg
“Congressman French Hill (R, AR) Talks US Crypto Regulations, SEC Gary Gensler, Ripple XRP, BlackRock, CBDCs” – Thinking Crypto podcast on YouTube (40 minutes)