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On April 14, the US Senate voted to confirm Gary Gensler as Chairman of the Securities and Exchange Commission (SEC). A professor at the Massachusetts Institute of Technology whose research focused on issues related to fintech and crypto, Gensler will oversee the SEC, which was one of the active US regulatory agencies when it comes to enforcing rules in the crypto space – and has jurisdiction to determine whether crypto tokens, their issuers and dealers fall under US securities laws.
The crypto industry largely welcomed Gensler’s nomination. While some observers expect that he may push for aggressive regulatory enforcement targeting companies that violate securities rules in the crypto space, others suggest that an SEC chairman who understands cryptocurrencies could lead the agency to take bold steps, such as Bitcoin Exchange Traded Fund (ETF) approval for the first time.
A top US regulator with deep knowledge of the crypto space could cut both ways – potentially more willing to take a very tough stance in the event of a breach, but also willing to make decisions that could spur innovation.
The same week the Senate confirmed Gensler for president, SEC Commissioner Hester Pierce released the long awaited update to its proposal for a safe harbor framework. Dubbed “Crypto Mom” Hailed by industry watchers for its open approach to innovation, Pierce’s proposal lays out a proposed path for developers to launch new tokens with a three-year grace period during which they would be exempt from registration under securities laws.
The public is invited to comment on the proposal. Not surprisingly, the crypto industry has championed the concept to ensure the US market remains open and friendly to crypto innovators.
We look forward to seeing what the future holds for the SEC under Chairman Gensler, and what happens with Commissioner Pierce’s safe harbor proposal. meanwhile, watch our webinar on how crypto companies can list new tokens and stay compliant.
🇺🇸 OFAC issues more crypto-related sanctions
On April 15, the US Treasury’s Office of Foreign Assets Control (OFAC) issued its sixth round of cryptocurrency-related sanctions. Sanctions goal Individuals and Entities Associated with Russia Involved in US Election Meddling. As part of the crackdown, OFAC listed 27 crypto addresses — including privacy coin addresses — associated with sanctioned parties. Watch ours On-demand webinar with OFAC Director Andrea Gacki to learn more about OFAC’s activities related to cryptocurrencies.
🇪🇺 Digital Euro Update: People want privacy
European Central Bank this week published findings from its public consultation on the digital euro. A study has shown that privacy is the main concern of the European public regarding a possible central bank digital currency (CBDC) across Europe. We wrote about it privacy implications of CBDC earlier – a topic we explored as part of Technology pioneers of the World Economic Forum program.
🇹🇷 Turkey bans crypto payments, while crypto thrives in 🇮🇳 India despite ban fears
Turkey announced it last week bans cryptocurrencies for payments. While trading of cryptocurrencies on Turkish stock exchanges will be permitted, the use of cryptocurrencies to purchase goods and services will not be permitted. In what should be a potential warning to Turkey about the potential futility of banning crypto activities, reports suggest crypto is still thriving in India despite ongoing drama over a possible ban there. Some observers in India argue that there is a risk of a ban it can be overblown and that the government may yet arrive at a more balanced approach.
🇱🇰 Sri Lanka warns of unregulated exchange risks
Central Bank of Sri Lanka issued a statement warning the public to beware of the risks arising from doing business with domestic crypto exchanges, which are still unregulated. Unregulated and non-aligned stock markets present risks that can be assessed through use Elliptical Discoveryour repository of due diligence information for over 200 VASPs.
Missed our last week’s update? Watch here: US bank chiefs seek regulatory clarity on crypto
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