House Financial Services Ranking Member Maxine Waters (D, CA) says her side is ready to move along stablecoin legislation according to Politico. “We continue to be in a relationship on stablecoins (…) We want to get it. We’re working with them — our staffs are still working,” Waters tells Politico’s Jasper Goodman. Her suggestion is that “a deal” is possible by the end of the year. Read it.
what you should know: Back in March, the Ranking Member was optimistic about stablecoin legislation saying, “I believe the legislation could be passed when we get back to Congress… in [the space of] a few days.” And then in April at the first stablecoin hearing of the 118th Congress, she said the stablecoin bill had “no chance….” Are things really different this time? The pre-emptive (Federal floor, etc.) vs. states right issue is the main point of contention. But even solving this may not mean Dem leadership led by the White House – not Waters – is going to want a stablecoin bill to pass. Since FTX’s implosion, Dems have appeared to believe being “anti-crypto” is a winning position for the 2024 general election.
offshore USD stablecoins
As the United States arguably falls behind in creating a digital assets regulatory framework, more countries are opening up to the issuance of – local – U.S. dollar-backed stablecoins.
In a press release yesterday, Paxos says it’s been approved by the Monetary Authority of Singapore (MAS) to issue a USD stablecoin in MAS’ jurisdiction. The release explains, “All Paxos stablecoins are fully backed 1:1 by the US Dollar and cash equivalents, ensuring that they are stable, safe, and reliable. Similar to its other tokens, Paxos will issue monthly attestations and reserve reports so that all holders know exactly what they own.” Read the release. And, read more in CoinDesk.
is today the day?
It’s possible that Bitcoin spot market ETFs could be approved today by the Securities Exchange Commission (SEC) – a first. In a feature article, The New York Times covers the recent momentum in Bitcoin prices in anticipation of the approval: “Some proponents have hailed the possibility of this new investment vehicle, known as a spot Bitcoin E.T.F., as crypto’s ‘salvation.’ In August, Grayscale Investments, a crypto asset manager, scored a legal victory over the S.E.C. that seemed to pave the way for it to offer the Bitcoin product.” Read it.
CFTC on illicit financing
Speaking at the 2023 U.S. Treasury Market Conference yesterday, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam said, “When the use of digital assets and related enabling technologies for illicit finance purposes threatens national security and may fund acts of war and terrorism, we must continue to aggressively demand that all market entrants implement and comply with know-your-customer (KYC) and anti-money laundering (AML) procedures and Customer Information Programs (CIPs).” Read the speech.
what you should know: The recent Wall Street Journal articles on crypto financing terrorism continue to reverberate.
Crypto app Strike announced that it will make available the purchase of Bitcoin using a debit card through its app by virtue of a new partnership with Checkout[.]com. The app’s new feature will extend across 65 countries.
Strike CEO Jack Mallers explains to Fortune, “Checkout.com is providing a card network gateway, meaning it brokers relationships with the likes of Visa and Mastercard. Checkout.com itself is not doing the fiat-to-Bitcoin conversions, but instead will serve as an alternative payment rail to wire transfers, ACH, and card processing already available in the U.S, opening up the Bitcoin on-ramp to users globally.” Read more.
digital asset donations
In a detailed article on JD Supra, Andie Kramer of ASKramer Law suggests that there are benefits in donating digital assets to charities. She suggests, “Donors might want to specifically identify those digital assets to contribute as the ones they hold with the lowest tax basis and the largest amount of unrecognized appreciation. Such a donor would be able to “mop up” on a tax-free basis the largest amount of unrecognized gain hold in their digital asset positions.” Read this. It’s lengthy, but full of ideas in case you’d like to donate your favorite crypto or NFT.
Blockchain trade associations Global Blockchain Business Council (GBBC) and U.S. Blockchain Coalition (USBC), which describes itself as a “coalition of state-focused blockchain associations,” have merged. The press release explained that USBC will become a “national initiative” of GBBC. Read the release.
still more tips
Biggest Stablecoin Issuer Tether Now Wants to Become a Major Bitcoin Miner – Bloomberg
BlackRock files for spot ethereum ETF to further crypto push – Reuters
Fallen Crypto Star Do Kwon Loses Appeal on Fake-Passport Conviction – The Wall Street Journal