Post-ETF policy landscape and Novi fears, Oct. 18–25


The most important regulatory story of the week, if not the 12 months, has been the US Safety and Change Fee’s lack of opposition to the launch of the first-ever Bitcoin (BTC) exchange-traded funds, which took eight long years to materialize. Whereas the primary ETFs are monitoring CME-traded Bitcoin futures relatively than the asset’s spot value, the crypto house is already anticipating a pure-Bitcoin ETF as a logical subsequent step. This bar may show to be immensely tough to clear, nevertheless, as SEC Chair Gary Gensler appears far much less satisfied of the stringency of investor protections that such merchandise supply.

Beneath is the concise model of the most recent “Regulation Decoded” e-newsletter. For the complete breakdown of coverage developments over the past week, register for the complete e-newsletter under.

Crypto and the nationwide safety recreation

The U.S. Treasury Division revealed final week that the rising use of digital belongings poses a growing threat to the nation’s sanctions program. Adversaries can now use these various monetary rails to mitigate the consequences of U.S.-imposed sanctions inside the dollar-denominated realm. Just some days later, a high-ranking Treasury official reiterated the division’s heightened give attention to targeting crypto infrastructure utilized by unhealthy actors. The official additionally made it clear that there’s an understanding inside the division that the majority crypto transactions serve completely reliable functions.

Novi nervousness

It took mere hours for a gaggle of Senate Democrats to get extraordinarily nervous about Fb’s limited pilot of its digital wallet, Novi, run in partnership with Coinbase and Paxos. The take a look at noticed a remittances hall opening between the U.S. and Guatemala for a small variety of customers, whereby they might ship and obtain Pax Greenback (USDP), a dollar-backed stablecoin.

A gaggle of 5 senators, together with vocal crypto critic Elizabeth Warren and Banking Committee Chairman Sherrod Brown, responded with a letter condemning Fb’s “revived effort to launch a cryptocurrency and digital pockets,” citing quite a few scandals surrounding the corporate as a justification for why it can’t be trusted to come back anyplace close to launching non-public cash.

The thunder from down beneath

Large information from Australia captured the crypto crowd’s consideration as an Australian Senate committee tasked with devising measures to make the nation a number one expertise and monetary heart rolled out a far-reaching report on the state and prospects of crypto regulation. The report, which was met favorably by the trade, might lay the groundwork for Australia to affix the ranks of the world’s extra crypto-friendly jurisdictions.

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