The Zimbabwean government has formed a multi-stakeholder committee, tasked with consulting stakeholders in the cryptocurrency ecosystem. This committee, known as the National Risk Assessment Coordination Committee (NRACC), aims to determine the nature and extent of the cryptocurrency ecosystem in Zimbabwe. It will also evaluate the risks associated with cryptocurrencies, such as their potential misuse for […]
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Binance Nigeria Standoff: Crypto Exchange’s Top Executives Summoned by House of Representatives Committee
Top executives from Binance have been summoned to appear before the Nigerian House of Representatives Financial Crimes Committee no later than March 4. Ginger Onwusibe, the committee’s chairperson, has warned of possible repercussions should Binance executives fail to comply with the request. Latest Escalation in the Standoff Between Binance and Nigerian Authorities The Nigerian House […]
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House Financial Services Committee Advances Bill to Repeal SEC Bulletin Preventing Banks From Offering Crypto Custody Services
The House Financial Services Committee of the U.S. Congress has advanced a resolution that seeks to disavow SEC SAB 121, a bulletin that leaves banks and financial institutions out of the cryptocurrency custody provider market. However, the resolution, advanced with bipartisan support, is unlikely to be passed at a vote on the House floor, according […]
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House Financial Services Committee Members Demand More Time to Debate New Digital Payment Proposal
Leading members of the U.S. House Financial Services Committee, Chairman Patrick McHenry, Subcommittee Chairman French Hill, and Representative Mike Flood, have requested an extension of the public comment period for the CFPB’s proposed rule on digital consumer payment applications. This request centers on the committee’s concerns over the rule’s potential impact on the digital asset industry and its demand for a more comprehensive stakeholder review.
US Lawmakers Challenge CFPB Over Digital Asset Rule, Seek Extended Discussion
Top members of the United States House Financial Services Committee and its Subcommittee on Digital Assets, Financial Technology and Inclusion have requested an extension of the public comment period for a proposed rule by the Consumer Financial Protection Bureau (CFPB). The rule, which aims to redefine the regulatory landscape for digital consumer payment applications, has drawn scrutiny for its potential impact on the digital asset sector.
#NEW: Chairman @PatrickMcHenry, Subcommittee Chairman @RepFrenchHill, and @USRepMikeFlood sent a letter to @CFPB Director Rohit Chopra urging his agency to revisit its larger participants digital consumer payment proposed rule.
Read more https://t.co/CYczuI681v pic.twitter.com/W2kYVmQEM4
— Financial Services GOP (@FinancialCmte) January 30, 2024
In a letter dated Jan. 30, addressed to CFPB Director Rohit Chopra, Committee Chairman Patrick McHenry, along with Subcommittee Chairman French Hill and Representative Mike Flood, expressed concerns over the proposed rule titled “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications.” The lawmakers argued that the rule lacks sufficient justification, provides unclear guidance for third-party service providers, and could have unintended consequences on the digital asset ecosystem.
The letter focused on several key issues. Firstly, the proposed rule was criticized for expanding the Bureau’s regulatory reach into the payments industry without adequate justification or analysis of its impact on competition and consumer welfare. Secondly, the rule’s coverage of third-party service providers remains ambiguous, leading to potential regulatory uncertainty. Lastly, the proposed inclusion of digital assets within the scope of “funds” under the Dodd-Frank Act was seen as a move that could destabilize the digital asset industry by introducing regulatory uncertainty around digital asset transactions.
Given these concerns, the representatives urged the CFPB to reopen the comment period for an additional 60 days. This extension, they argued, would allow for more comprehensive feedback from a broader range of stakeholders before any further action is taken on the rule.
The letter also pointed out the significance of peer-to-peer transactions in the digital asset ecosystem, particularly through “self-hosted wallets.” The lawmakers cautioned that the proposed rule’s broad definition might introduce regulatory risks to digital asset wallet providers, especially those that do not maintain ongoing relationships with consumers.
If the CFPB’s proposed rule goes into effect, how might it impact the crypto industry? Share your thoughts and opinions about this subject in the comments section below.
Luetkemeyer’s Exit Sets Up Potentially Crypto-Friendly Turn in House Banking Committee
Rep. Blaine Luetkemeyer’s retirement at the end of 2024 opens the door for a new era in cryptocurrency regulation, with Rep. French Hill (R-Ark.) poised to lead the charge in the House Financial Services Committee.
Shift in House Financial Services Committee Leadership Could Lead to More Progressive Crypto Legislation
In a move that could impact the future of cryptocurrency regulation, U.S. Rep. Blaine Luetkemeyer (R-Mo.) announced his retirement at the end of 2024. This decision leaves a potential opening for a more crypto-friendly chairmanship of the House Financial Services Committee, following the departure of the current chair, Patrick McHenry, in early 2025 when his term ends.
— Blaine Luetkemeyer (@RepBlaine) January 4, 2024
Luetkemeyer, who currently holds a position on the House Financial Services Committee, had expressed interest in running for McHenry’s chairmanship. His retirement opens the door for Rep. French Hill (R-Ark.), known for leading the committee’s digital assets panel and his involvement in crypto-related legislation, especially concerning stablecoins. Hill, the vice-chairman of the House Financial Services Committee, has stated his intent to bring two crypto regulation bills to the floor and pass them in early 2024.
Ron Hammond, Director of Government Relations at the Blockchain Association, noted Hill’s bipartisan approach and his focus on cryptocurrency. While Luetkemeyer wasn’t anti-crypto, Hammond believes that cryptocurrency would not have been a high priority under his chairmanship, unlike under Hill or McHenry.
Rep. Hill seems to genuinely believe in crypto as a new viable asset class, and its importance in the future. In a Forbes interview, when asked what it means that there are numerous pieces of important upcoming crypto specific legislation, had this to say:
I think it says that members of Congress recognize that Web3 innovation, blockchain innovation, the earliest stage of innovation here is growing; that there’s a demand among institutional investors and consumers. If we don’t facilitate that framework, then you’re going to see that engagement move offshore.
As Luetkemeyer and McHenry step down, the GOP Steering Committee will consider several factors, including legislative performance and fundraising capabilities, to decide on their replacements in 2025.
Rep. Hill is seen as a top contender for the House Financial Services chair position. Other potential candidates include Rep. Bill Huizenga (R-Mich.) and Rep. Andy Barr (R-Ky.), with their chances contingent on the Republicans retaining control of the House after the upcoming elections.
Do you think more US politicians will warm up to crypto? Share your thoughts and opinions about this subject in the comments section below.
Senate Ethics Committee Urged to Investigate Senator Elizabeth Warren on Misleading Crypto Statements
The CEO of the Chamber of Digital Commerce says the Senate Ethics Committee should launch a full investigation on Senator Elizabeth Warren for making false and misleading statements about crypto. “Senator Elizabeth Warren has misled the American people as well as the U.S. Congress on multiple fronts,” she stressed.
‘Senate Ethics Committee Should Launch a Full Investigation’
Chamber of Digital Commerce founder and CEO Perianne Boring slammed U.S. Senator Elizabeth Warren (D-MA) for making false and misleading statements regarding cryptocurrency in an interview with Fox Business on Thursday.
“Senator Elizabeth Warren has misled the American people as well as the U.S. Congress on multiple fronts,” the Chamber of Digital Commerce chief began. “First, she’s misled us to believe that crypto has an AML [anti-money laundering] problem,” she continued, emphasizing:
It does not have an AML problem. The vast majority of illicit finance go through the traditional financial system and legacy banking infrastructure. It’s not happening in the cryptocurrency space.
Boring then explained that every crypto transaction is recorded on a blockchain, adding that “law enforcement has greater tools to track and trace on a blockchain than they do on legacy infrastructures.”
The second area in which Senator Warren has misled Congress and the American public concerns her bill: the Digital Asset Anti-Money Laundering Act. “This bill was introduced under the guise of anti-money laundering to fix the non-existent compliance gap,” Boring described. “She has misled the U.S. Senate and now 20% of the U.S. Senate is sponsoring this bill that they think is going to address the compliance issue.”
The Chamber of Digital Commerce CEO pointed out: “If you read the legislation, you will quickly understand that the requirements are technically impossible to implement in a blockchain-based environment, making it illegal for U.S. persons to use the technology, which effectively bans it for U.S. persons.” She stressed that if the bill passes, it “would be absolutely detrimental” for the crypto space and innovation in the U.S.
Emphasizing that “misleading statements” about crypto “have been perpetuated by a member of the U.S. Senate, the crypto advocate stressed:
Elizabeth Warren must be taken seriously, and the Senate Ethics Committee should launch a full investigation on this.
The Chamber recently started a petition on Change.org titled “Stop The Crypto Ban.” At the time of writing, over 10,000 signatures have been collected.
Do you think the Senate Ethics Committee should launch a full investigation on Elizabeth Warren for making false and misleading statements about crypto? Let us know in the comments section below.
US Lawmaker Spotlights Crypto Bills Approved by House Committee This Year
U.S. Congressman Tom Emmer has highlighted various crypto bills that passed out of the House Committee on Financial Services this year. Among them is his appropriations amendment barring the U.S. Securities and Exchange Commission (SEC) “from using taxpayer dollars on its abusive crypto enforcement tirade until Congress passes legislation giving the SEC jurisdiction over this industry.”
Crypto Bills Greenlighted by House Financial Services Committee in 2023
U.S. Congressman Tom Emmer (R-MN) summarized the House Financial Services Committee’s achievements in 2023 on social media platform X last week. He emphasized that the committee “has moved more legislation in 2023 to boost our capital markets, welcome innovation, and hold unchecked regulators accountable than in previous years.”
The lawmaker proceeded to highlight various bills related to crypto legislation that were greenlighted by the committee during the year. “In July, we passed the Blockchain Regulatory Certainty Act out of Committee to streamline one of the largest barriers to entry in the digital asset space: money transmission regulation,” the congressman described.
Moreover, he noted that “key language” from his Securities Clarity Act was included in the Financial Innovation and Technology (FIT) for the 21st Century Act, which passed out of Committee in July, emphasizing:
This legislation lays the foundation for the Ripple decision, clarifying that a token isn’t automatically a securities contract.
“My bipartisan bill, the Securities Clarity Act, carves this concept in stone to provide the regulatory confidence needed to make sure the next iteration of the internet is designed with American values,” the lawmaker added.
In addition, his CBDC Anti-Surveillance State Act passed out of the committee in September. Rep. Emmer opined:
This is a historic step in defense against the ever-expanding government surveillance apparatus. The bill is cosponsored by 75 members of Congress.
“If not open, permissionless, and private – like cash – a CBDC [central bank digital currency] is nothing more than a CCP-style surveillance tool that can be weaponized to oppress the American way of life,” he previously explained. “We’re not going to let that happen – not on House Republicans’ watch.”
Moreover, Congressman Emmer shared: “Without opposition, in November the House passed my appropriations amendment barring the SEC from using taxpayer dollars on its abusive crypto enforcement tirade until Congress passes legislation giving the SEC jurisdiction over this industry.” The lawmaker opined:
Gary Gensler is as ineffective as he is incompetent … Congress will hold unelected bureaucrats accountable.
The congressman concluded: “This is just the beginning. In 2024, the second half of the 118th Congress, I look forward to moving these measures through the House.”
What do you think about the crypto bills approved by the House Financial Services Committee? Let us know in the comments section below.
Report: Kenyan Parliament Committee Approves Bill Proposing to Widen Definition of Securities to Include Crypto
A Kenyan parliamentary committee has reportedly approved a bill that proposes to widen the definition of securities to include cryptocurrencies. The bill proposes a tax on crypto exchanges and digital wallets as well as a capital gains tax on users who realize a capital gain from the sale of their crypto assets.
Bill Just Two Readings Away From Presidential Assent
A Kenyan parliamentary committee recently voted to approve the publication of a bill that proposes to include cryptocurrencies in the definition of securities, according to a report. The bill, sponsored by Abraham Kirwa, a member of parliament (MP) for Mosop, is now set to go to the Kenyan National Assembly for a second reading. Legislators are expected to debate and make further amendments at the third reading stage.
Once the bill, known as the Capital Markets (Amendment) Bill, 2023, is approved, it will be sent to the Kenyan president for his assent. Kimani Kuria, whose committee approved the bill, said regulating the crypto space is especially crucial in a country that boasts millions of users.
“This is a very critical law that will guard our country against proceeds of crime and terrorism financing. Cryptocurrencies are already being traded by millions of Kenyans yet we have no law to govern it. We approve this Bill for publication,” Kuria, an MP for Molo, reportedly said.
Capital Gains Tax on Crypto
As explained in the report, the Kenyan Capital Markets (Amendment) Bill, 2023 seeks to introduce taxes on crypto exchanges and digital wallets. The bill also proposes a capital gains tax on users who realize a capital gain from the sale of their crypto assets.
The sponsor of the bill, Abraham Kirwa, a member of parliament (MP) for Mosop, insisted that this bill will help ensure that Kenyans are shielded from risks commonly associated with cryptocurrencies. Kirwa also accused the Central Bank of Kenya of dragging its feet and not doing enough to ensure crypto users are protected.
The Central Bank of Kenya (CBK) has seemingly adopted a lukewarm approach towards cryptocurrencies even as their popularity grows. Also, the former governor of the CBK Patrick Njoroge repeatedly spoke out against crypto and bitcoin during his tenure. However, despite this, many Kenyans have embraced crypto assets, and the country is now widely seen as one of Africa’s biggest crypto markets.
Meanwhile, among some of the bill’s key proposals is the requirement that would compel any person possessing cryptocurrencies to furnish Kenya’s Capital Markets Authority with details such as the amount of proceeds from the transaction, any costs related to the transaction, and the amount of any gain or loss on the transaction.
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What are your thoughts on this story? Let us know what you think in the comments section below.
Pennsylvania State House Committee Passes Bill on ‘Reporting Requirements’ for Crypto Miners
The Environmental Resources and Energy Committee of the Pennsylvania General Assembly recently passed a bill which proposes “reporting requirements for qualifying crypto-asset mining operations.” Sponsor of the draft legislation Greg Vitali said the bill “doesn’t prohibit any cryptocurrency operation from operating in any way.”
Reporting Requirements for Crypto Miners
The Pennsylvania House Environmental Resources and Energy Committee recently passed a bill on “reporting requirements for qualifying crypto-asset mining operations and for an impact study.” The committee also reportedly voted to remove the two-year moratorium on new mining operations from Bill 1476.
According to a report published by The Centre Square, the bill was passed despite resistance by Republicans on the committee. Sponsored by committee chairman Greg Vitali, the bill will now be forwarded to the full house. Explaining why he pushed for the bill’s passage, Vitali reportedly said:
This bill simply is a reporting and study bill. It doesn’t prohibit any cryptocurrency operation from operating in any way. It simply requires them to report what they are doing. Right now we’re in a situation where many cryptocurrency operations are gravitating towards Pennsylvania and we simply don’t know where they are and what they’re doing.
As per the draft bill, owners of qualifying crypto-asset mining operations will be required to furnish authorities with “the number and geographic locations” of any such operations. The type of mining machines, and their purchase as well as their retirement dates. As expected, the proposed law also requires crypto miners to share with authorities the amount of electricity consumed as well as when it is used.
However, Martin Causer, a Republican from Bradford, who opposed the bill, said the reporting standards proposed in the Vitali-sponsored bill are “burdensome and not necessary.” Concerning crypto miners’ alleged contribution to the State’s pollution legacy, the Republican representative said:
“A lot of these operations utilize waste coal and actually are beneficial to cleaning up waste coal in the commonwealth — which I think is beneficial.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Brazil Committee Recommends Indicting Binance Officials, CZ
A congressional committee in Brazil has concluded that four Binance officials, among them company CEO Changpeng Zhao (CZ), should be indicted. The suggestion follows a probe targeting crypto platforms suspected of operating pyramid schemes and can potentially affect the global crypto company’s plans in Brazil and add to its legal challenges.
Parliamentary Committee Suggests Indictment of Binance CEO, Senior Brazil Staff
Binance, the world’s largest cryptocurrency exchange by daily trading volume, may face another legal battle if Brazilian authorities accept the recommendation of a committee at the National Congress to indict some of its leaders, including founder and chief executive Changpeng Zhao.
The committee, which had been investigating crypto-related Ponzi schemes, has accused CZ and three senior local Binance employees of fraudulent management, offering or trading securities without prior authorization as well as operating a financial institution again without authorization, Bloomberg reported.
Comprised of 28 members of the Chamber of Deputies, the lower house of parliament, the committee also suggested that Brazil’s Federal Public Prosecutor’s Office should examine the tax compliance of Binance’s local unit and a separate arm, Binance Capital Management.
Reacting to the news, the exchange said in a statement that it went to “great lengths” to actively collaborate with the committee which wrote in a report accompanying its recommendations that Binance is “surrounded by suspicion” in Brazil.
Binance also emphasized it “strongly rejects any attempts to make Binance a target or even expose its users and employees with allegations of bad practices without any proof, amid competitive disputes given the company’s leadership position in Brazil and in the world.”
The Brazilian lawmakers also recommended that the country’s securities regulator, Comissão de Valores Mobiliários (CVM), investigate Binance for “repeated violation of the securities market rules.” The exchange has been accused of continuing to sell derivatives despite having been ordered to stop.
Besides a CVM probe against its local branch, which may result in more fines and penalties, Binance’s proposal to acquire a Brazilian securities brokerage, announced in early 2022, has not been approved yet by the country’s regulatory bodies and central bank.
The parliamentary committee’s recommendation for indictment may turn into another setback for this year. The crypto behemoth has been dragged into legal battles and other clashes with financial regulators in the U.S., Europe, and elsewhere.
Do you think Brazilian authorities will accept the committee’s recommendation to indict Binance officials? Tell us in the comments section below.