Regulators Discuss Crypto as US Law Decoded Report Unveiled Nov 13-20


The House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion held a hearing to discuss the use of blockchain technology titled “Crypto Crime in Context: Breaking Down the Illicit Activity in Digital Assets.” Representative French Hill stated that crypto should not be blamed for terror financing, as it is no different from phone and internet. Witnesses from Consensys and Chainalysis spoke about the need for collaboration between government and private sector, as well as the need for well-crafted legislation, to aid in the prevention of misuse of digital assets.

At a hearing held by the Senate Special Committee on Aging, U.S. Senator Elizabeth Warren highlighted the dangers of cryptocurrency scams. Steve Weisman, an expert in the field of scams and cybersecurity, said that crypto posed greater challenges with transparency than credit card fraud. He expressed support for Warren’s Digital Asset Anti-Money Laundering Act, which seeks to ensure that digital assets are subject to the same Anti-Money Laundering laws as traditional fiat currency.

The New York State Department of Financial Services (NYDFS) announced new restrictions that require crypto companies to submit their coin listing and delisting policies to the NYDFS for approval. The incoming changes apply to all digital currency business entities licensed in the state. These policies must meet the NYDFS’ more stringent risk assessment standards in order to protect investors.

Republican United States Presidential candidate Vivek Ramaswamy released a crypto policy framework called “The Three Freedoms of Crypto.” He declared that, if elected, he would “direct government prosecutors to prosecute bad actors, not the code they use and not the developers who write that code.” Ramaswamy specifically targeted sanctions against crypto mixer Tornado Cash, describing them as inappropriate. He also promised to provide regulatory clarity that would give new cryptocurrencies “safe harbor” exemptions from securities laws and to prevent any federal agency from creating rules that limit the use of self-hosted wallets.

The Australian Taxation Office (ATO) issued guidance on capital gains tax (CGT) treatment of decentralized finance and wrapping crypto tokens for individuals. The ATO clarified that the transfer of crypto assets to an address that the sender does not control or that already holds a balance will be regarded as a taxable CGT event.

The Democratic Party of Korea, which holds 167 out of 300 seats in the National Assembly, has made it mandatory for prospective candidates to disclose their digital asset holdings before the 2024 general election. This disclosure will form part of the party’s effort to show the “high moral standards” of its candidates. The information on each candidate will be made available on a separate online platform featuring details of their careers, educational background and legislative activity plans.

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