The United States as the Anatomical Theater of Cryptographic Regulation, September 1320

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Fall has traditionally been the open house season for financial regulators in the United States. The thicket of news from Capitol Hill, federal courts, and various regulatory bodies can seem overwhelming these days, especially to those of us who reside outside of these venerable institutions. It is also clear that the results of these legal battles will have far-reaching effects on crypto markets, adoption and, in general, the relationship between state power and industry around the world. But that’s not the only reason anyone is interested in how the old world adapts to digital finance to keep up with US developments.

Gensler of the Hill

Security and Foreign Exchange Committee chairman Gary Gensler appeared before the Senate Banking, Housing and Urban Affairs Committee last week. During the hearing, we didn’t get much clarity on how Gensler wants to deal with stablecoins beyond his opinion that a lot of them may well be titles.

It was good to see at least some senators, such as Pat Toomey, ready to call Gensler for inconsistencies and omissions in his argument. What was concerning was seeing mostly Republicans on the innovation side and mostly Democrats on the side of tighter investor protection (despite all the laughs and memes produced by Senator Warrens Ethereum). With crypto becoming yet another partisan issue is a nightmare scenario, thankfully it doesn’t appear to be so outside of this particular Senate hearing yet.

CFTC, renewed

The Commodity Futures Trading Commission, which has always been more lenient towards the corner of the crypto space under its purview, will soon have a permanent chairman and two new commissioners. The three candidates, the interim president who has spoken widely in favor of innovation, a lawyer specializing in digital finance and another with a solid background in enforcement seem to have the potential to be a positive force. for crypto, but let’s not get too excited just yet.

Crypto becomes political

The rest of the world continues to provide major policy developments for digital assets. Cuba has recognized the cryptocurrency and now allows its use as a transfer and investment vehicle. In El Salvador, opponents of President Nayib Bukeles made a political statement by setting a crypto kiosk on fire. In South Korea, the majority party clashed with the finance minister over a controversial crypto tax code, trying to postpone its implementation. Do you notice a common theme? Cryptocurrency issues are on political agendas around the world.

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