bicameral CBDC legislation
On Wednesday, Sen. Rick Scott (R, FL) has thrown his “CBDC legislation” hat into the ring with the “Chinese CBDC Prohibition Act” which “prohibit the use of the Chinese Central Bank Digital Currency, also known as the Digital Yuan, by U.S. licensed money service businesses.” See the release. Rep. Blaine Luetkemeyer (R, MO), Chairman of the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, had originally introduced the legislation in the House back in February.
Also co-sponsoring up for the bill in the Senate were Ted Cruz (R, TX) and Marsha Blackburn (R, TN). Cruz said in a statement, “The Chinese Communist Party intends to use a central bank digital currency to spy on Americans’ private financial transactions. We must eliminate the CCP’s underhanded attempts to gain access to American financial data, that threaten their privacy and undermines our national security. This bill prevents the CCP from monitoring American transactions and financial data.”
what you should know: There are many flavors of Anti-CBDC bills from Republicans in Congress, but what makes this unique is, this bill specifically targets the Chinese central bank’s CBDC. Moreover, there are national security implications as the stature of the U.S. Dollar, the world’s reserve currency, may increasingly be threatened by China’s Digital Yuan.
legislation crossroads
In an Op-Ed in Forbes, former congressional staffer Sam Lyman, who is now a public policy executive at Bitcoin infrastructure provider Riot Platforms, takes issue with what he sees as misinformation being spread in Congress about digital assets. He takes issue with Senator Elizabeth Warren (D, MA) who “saw a crisis and capitalized on it” for her own Digital Asset Anti-Money Laundering Act by using data about crypto’s use in terrorist financing that Lyman notes has been debunked. He writes, “Will misinformation form the foundation of crypto policymaking? Or will lawmakers heed the facts, even when they defy their previously held viewpoints?” Lyman believes we’re at a crossroads. Read more.
what you should know: There’s more momentum than ever for legislation such as Sen. Warren’s. Will it be enough to pass both Houses of Congress is the question? The Republican majority in the House would appear to indicate it’s not. But with the general election looming in 2024, a Democratic sweep in Congress could grease the wheels for the Senator in the next Congress.
self-regulation
Blockchain industry group Proof of Stake Alliance (PoSA) announced its “Industry Principles for Staking.” With proof of stake (PoS) blockchains growing to include 19 of the top 20 smart contract platforms and a market cap of over $250 billion USD as of September 2023 according to a PoSA press release, the group hopes that the new principles will solidify the industry’s interest in both consumer protections and innnovation. See the principles (PDF).
Polygon legal and policy executive Rebecca Rettig said about the principles, “We hear over & over from policymakers that the industry should put forward proposals for best practices & how to regulate. [PoSA] has done just that today w the Staking Industry Principles … to promote consumer protection, market integrity & responsible innovation.” Read on X.
what you should know: Self-regulation may be scoffed at by digital asset critics but it’s not without precedent in traditional finance realms. Associations such as FINRA (securities related)and the National Futures Association (commodities) are self-regulatory bodies, for example.
use case – gamer income
Decrypt reports that a blockchain games development company called LootRush will let gamers rent out their non-fungible tokens (NFTs) to earn passive income for game items like cards and land. The company claims to already have 100 of its 1,000-game library enabled with the NFT renting capabilities. Read more. The CEO calls his company the “AirBnB” of gaming NFTs.
more tips:
What is an NFT? – OpenSea
still more tips
BlackRock appears to take first steps toward an ether ETF – CNBC
Polygon Village launches $90 million fund for ecosystem development – The Block
Opinion by Moody’s Head of DeFi Rajeev Bamra: “Can Stablecoins Get Past Their Instability?” – CoinDesk