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- Crypto Regulatory Landscape
Thank you to all those who participated in the first ever DAI poll!
The results are in, and our topic for this week is …
… The Crypto Regulatory Landscape!
It’s no surprise one of the biggest headwinds currently holding the crypto industry back is the lack of clear (and sensical) regulations.
We finally saw the Securities & Exchange Commission formally approve the first Bitcoin Spot ETFs earlier this year, and prices have responded by quickly accelerating toward near all-time highs.
Let’s dive into the key regulatory trends set to affect the industry in 2024…
Key Developments From the Past Week
The Chair of the Commodities Future Trading Commission (CFTC), Rostin Behnam, urged Congress to close the regulatory gap in the crypto commodity spot market and reaffirmed the CFTC's position that ETH is a commodity.
Fed Chair, Jerome Powell, told Senate Banking Committee members that the Fed would never issue a CBDC directly to individuals, only through banks, and would only do so with clear Congressional authorization.
The Energy Information Administration agreed to stop its "emergency" data collection from commercial crypto miners, destroy the data it had already collected, and will now follow the traditional notice and public comment process.
U.S. Stablecoin Regulations
Wyoming Senator Cynthia Lummis is also leading the charge for stablecoin regulation in the U.S.
In October 2023, Lummis backed a massive campaign against Tether, asking the U.S. Justice Department (DOJ) to consider criminal charges against the stablecoin firm amid some reports alleging that it engaged in illicit financial transactions.
Most recently, Lummis has also been aggressively opposing central bank digital currencies, arguing that such digital currencies are “anti-democratic and a means of financial censorship.”
Between the lines: "Senators Lummis and Gillibrand have been working for several months on a bill that provides regulatory clarity around stablecoins while protecting consumers from bad actors," spokespeople for both senators' offices said in a statement to Axios.
Coinbase vs. The SEC: Motion to Dismiss Ruling Awaited
Within the Shareholder Letter for Q4 2023, Coinbase highlighted the SEC vs Coinbase case remains ongoing. The SEC and Coinbase await a ruling on the Coinbase Motion to Dismiss (MTD).
Coinbase filed a Motion to Dismiss in August 2023, arguing the SEC lacks the statutory authority to regulate US crypto exchanges. In January 2024, presiding Judge Katherine Failla heard oral arguments from Coinbase and the SEC for and against the MTD.
Legal experts tilted the scales of justice in Coinbase’s favor. Bloomberg Intelligence Senior Litigation Analyst Elliot Z. Stein attended the hearing and gave Coinbase a 70% chance of winning. Stein noted that Coinbase gave a more convincing definition of an investment contract. The Senior Litigation Analyst also thought the case could reach the US Supreme Court if it survives.
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Top News Headlines
Top Crypto Prices by Market Cap.
1. Bitcoin $68,517.00 7D 7.8% | 6. Cardano $0.701 7D -4.8% |
Source: Coingecko Price Feed, Mar. 10th 2024, 10:30pm EST. Data excludes Lido Staked Ether, and stablecoins USDC and USDT.
Before we say goodbye, let us know your Bitcoin price prediction for the coming week!
Will Bitcoin finish the upcoming week above or below $69k? |
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