Nigeria’s detention of Binance executive Tigran Gambaryan is impacting the country’s blockchain industry, an organization representing blockchain and crypto associations has warned. Evidence of this impact includes the decline in foreign investments. The organization also argued that the continued detention of the Binance executive could jeopardize valuable collaborations and associated benefits. Nigeria’s National Interests A […]
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Hashgraph Association and Blade Labs Partner to Drive Digital Transformation in the Middle East
The Hashgraph Association and Blade Labs have partnered to drive digital transformation using the latter’s conventional and Shariah-compliant digital securities platforms. The CEO of Blade Labs described the Hashgraph Association as a strategic investor that enables the company to integrate its cutting-edge digital asset solutions with more businesses in the Middle East and beyond. Integrating […]
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American Securities Association Sues SEC Over Lack of Transparency in Enforcement Actions
The American Securities Association (ASA) filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) on Thursday for failing to comply with the Freedom of Information Act (FOIA). The ASA seeks to compel the SEC to disclose records related to its “recordkeeping sweep initiative” that imposed penalties on broker-dealers for retaining off-channel communications, such […]
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The Hashgraph Association Partners With Qatar Financial Centre to Launch Digital Assets Venture Studio
The Hashgraph Association, a Swiss non-profit organization, has partnered with the Qatar Financial Centre (QFC) to launch a million digital assets venture studio. The venture studio aims to support companies in developing regulatory-compliant decentralized finance (defi) solutions. Supporting Web3 Startups With Bankable Defi Solutions The Hashgraph Association, a non-profit organization based in Switzerland, has […]
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Congolese Fintech Startups, Government Form Association to Accelerate Financial Inclusion
Democratic Republic of Congo (DRC)-based fintech startups have partnered with the government to launch an association. The goal of the collaboration is to accelerate financial inclusion in the African country. By partnering with the government, the association will play a crucial role in shaping “policies that encourage investment, competition, and access to financial services.” Bolstering […]
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Digital Euro Association Partners With HBAR Foundation to Boost Understanding of CBDCs and Stablecoins
The Digital Euro Association (DEA) has entered into a partnership with the HBAR Foundation. This collaboration aims to bolster its comprehension of central bank digital currencies (CBDCs) and stablecoins. Although this partnership marks a significant milestone in the digital currency landscape it nevertheless does not amount to an endorsement of any ideologies or products. Enhancing […]
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Kenya Advances Toward Digital Asset Hub Ambition With Virtual Assets Bill – Kenya Blockchain Association
The Blockchain Association of Kenya (BAK) is reportedly on the verge of launching a community-led draft bill, a significant stride towards its objective of transforming Kenya into a hub for digital assets. BAK has expressed its intention to integrate feedback from stakeholders into a revised draft. This updated version of the draft bill is due […]
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Hashgraph Association Partners With Saudi Government to Launch Deep Tech Venture Studio
The Hashgraph Association, a nonprofit organization based in Switzerland, announced on Feb. 7 that it had partnered with Saudi Arabia’s Ministry of Investment to launch a deep tech venture studio. The venture studio’s objective is to assist both Saudi and foreign companies develop innovative solutions using deep tech, such as artificial intelligence (AI), blockchain, and […]
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Blockchain Association to Elizabeth Warren: Crypto Can Potentially Disrupt or Compete With ‘Too Big to Fail’ Banks
The Blockchain Association has rejected U.S. Massachusetts Senator Elizabeth Warren’s claims that former security officials collaborating with it seek to weaken the country’s “ability to catch and prosecute America’s enemies.” According to the nonprofit organization, ex-U.S. security officials chose to join the Blockchain Association because they “value freedom and creativity, sovereignty of the individual, and permissionless innovation.”
Blockchain Association Does Not Employ Former U.S. Security Officials
The Blockchain Association has responded to U.S. Senator Elizabeth Warren’s allegations that former U.S. security officials collaborating with the lobby group seek to weaken the country’s “ability to catch and prosecute America’s enemies.” In its response to Warren’s Dec. 18 letter, the nonprofit membership organization clarified that it does not “currently employ anyone with the credentials listed” by the Massachusetts Senator.
2/ First, here’s our full response to Sen. Warren. I encourage you to read it. I think it’s a good summary of what our members are working on, what they care about, and why they’re so engaged in D.C.https://t.co/yFasbRO0ic pic.twitter.com/L4AxhqtEnd
— Kristin Smith (@KMSmithDC) January 9, 2024
Instead, the nonprofit organization counts many former U.S. military, national security, intelligence officers, and law enforcement professionals as its members. As reported by Bitcoin.com News in late December 2023, Warren’s letter expressed concern over the Blockchain Association’s employment of a “small army” of former security officials.
She also lamented what she sees as gaps in the country’s ethics laws which make it possible for former officials to easily secure employment in the private sector immediately after leaving government. The U.S. politician has since asked the Blockchain Association to share details of the former officials’ work on its behalf.
However, in a letter authored by the Blockchain Association’s CEO Kristin Smith, the nonprofit organization explains why former officials have chosen to work in the crypto space instead of more lucrative ventures.
“After leaving government, these public servants could have chosen from myriad, well-deserved professional opportunities. But they were drawn to work in the emerging digital asset industry because they value freedom and creativity, sovereignty of the individual, and permissionless innovation,” the nonprofit organization said.
Crypto Best Positioned to Challenge ‘Too Big to Fail’ Bank
The Blockchain Association also defended its ongoing efforts to prevent Senator Elizabeth Warren’s attempts to pass anti-crypto laws, stating that “crypto values are American values” hence they must be protected. The organization also believes that crypto has a realistic chance of disrupting or competing with the “Too Big to Fail” banks.
On the terrorism-fighting front, the nonprofit organization said that the transparency and traceability of blockchain technology can help enhance the capabilities of tools used by serving national security professionals. The Blockchain Association’s letter added:
“For this reason, it is far better to build the next generation of financial technology on public blockchains than it is to continue patching opaque legacy systems that have already proven wholly insufficient at combating money laundering and terrorist financing.”
What are your thoughts on the Blockchain Association’s letter? Let us know what you think in the comments section below.
Blockchain Association Rebuffs CFPB’s Proposal on Payment Apps and Digital Assets
In a detailed critique, the Blockchain Association counters the CFPB’s latest proposal to oversee digital consumer payment applications, citing legal and jurisdictional overreaches in the bureau’s approach to cryptocurrencies and digital assets.
CFPB Faces Criticism from Blockchain Association Over New Proposal
In November 2023, the Consumer Financial Protection Bureau (CFPB) proposed a new rule aimed at bringing non-bank payment providers and certain crypto transactions under its oversight. The proposal was ostensibly seen as a step towards modernizing financial regulation, and has sparked backlash in the crypto community.
The proposed rule by the CFPB seeks to define a market for general-use digital consumer payment applications. This would bring apps like Venmo and other digital asset platforms under the same regulatory scrutiny traditionally reserved for banks. The implication for the crypto industry is profound, as this could subject various crypto transactions to increased regulation and oversight. The rule is part of the CFPB’s effort to extend its examination authority over larger participants operating in the digital payment space.
CFPB requested feedback to the proposal, which the Blockchain Association, a prominent group in the crypto sector, delivered in a detailed 14 page response today. In a press release with the response, the Association summarized their position:
The Proposal, which would give the CFPB supervisory authority over certain “general use digital consumer payment applications,” is overly broad and lacks the requisite analysis to justify such broad application.
The Association raised several concerns, primarily questioning the CFPB’s jurisdiction over digital assets. The Blockchain Association argues that the CFPB can’t assume authority over digital assets without additional rulemaking, noting that the CFPA, passed in 2009, does not clearly define “funds” to include digital assets, which emerged shortly after the Act’s inception.
The Association further contends that the proposal lacks legislative history or case law to support extending the definition of “funds” to include digital assets. They emphasize that such a significant extension of regulatory scope necessitates a separate rulemaking process under the Administrative Procedure Act (APA) to allow public engagement on this critical issue.
Beyond the jurisdictional challenge, the Association criticizes several aspects of the proposal, recommending that its scope be confined to transactions involving fiat currency only, citing the absence of a thorough impact analysis on digital assets, especially those used for non-financial purposes like NFTs. They also question the proposed threshold of 5 million transactions for platforms to fall under the regulation, labeling it as arbitrary and lacking justification.
Concerns are also raised about the proposal’s vague terms regarding non-custodial wallets and the challenges digital asset wallet developers face in tracking the nature of transactions. The group calls for a more detailed cost-benefit analysis, concluding that the current proposal fails to meet APA standards and risks being “arbitrary and capricious.”
In the end of a thread on X, the Blockchain Association’s Head of Legal, Marisa Coppel, recommends, “the CFPB to consider the implications of the Proposal’s application to digital assets and recognize the Proposal’s deficiencies in light of APA requirements.”
Do you think the CFPB is attempting to expand its power through this proposal? Share your thoughts and opinions about this subject in the comments section below.