A group of U.S. lawmakers led by Micheal McCaul, the House Foreign Affairs Committee chairman, has accused the Nigerian government of wrongfully detaining Tigran Gambaryan. The lawmakers have asked the Biden Administration to transfer Gambaryan’s case to the Office of Special Presidential Envoy for Hostage of Affairs. Nigeria Using Gambaryan’s Detention to ‘Extort His Employer’ […]
Bitcoin News
US Lawmakers Pressure SEC to Apply Same Principles for Ethereum as Bitcoin ETFs
Five U.S. representatives have called on the U.S. Securities and Exchange Commission (SEC) and Chair Gary Gensler to ensure a uniform and fair treatment in their review of upcoming ethereum exchange-traded funds (ETFs), similar to their method used for approving spot bitcoin ETFs. SEC Urged to Maintain Consistency Between Ethereum and Bitcoin ETFs Five U.S. […]
Bitcoin News
DOJ’s Unlawful Interpretation Threatens Bitcoin and Crypto Innovation, Lawmakers Warn
Two U.S. senators have criticized the Department of Justice (DOJ)’s new interpretation of “money transmission,” which extends requirements to non-custodial software, citing concerns over its impact on crypto networks and financial innovation. “I’m concerned the DOJ’s interpretation would treat software developers as criminals for merely writing and publishing code used by others,” one of the […]
Bitcoin News
US Lawmakers Urge Treasury Action on Russian Crypto Exchange Sanctions Evasion
U.S. Congressman Gabe Amo (D-RI), along with Congressmen Brad Sherman (D-CA) and Gerald E. Connolly (D-VA), sent a letter to U.S. Treasury Secretary Janet Yellen regarding the Moscow-based cryptocurrency exchange Garantex. They expressed concerns that Garantex is reportedly facilitating sanctions evasion and funding Russia’s invasion of Ukraine. The letter cited reports indicating that billion […]
Bitcoin News
Paraguayan Lawmakers Introduce Bill to Temporarily Pull the Plug on Bitcoin Mining Operations
A group of Paraguayan lawmakers is spearheading a bill that seeks to enact a temporary ban on cryptocurrency mining operations in Paraguay for 180 days or until the industry’s activities are properly regulated. The bill alleges that 28% of the energy losses of the National Power Administration (ANDE) correspond, in part, to illegal bitcoin mining […]
Bitcoin News
48 US Lawmakers Ask SEC Chair Gensler to Clarify Whether ETH Is a Security — Warn of ‘Negative Repercussions’
Forty-eight U.S. lawmakers have sent a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler asking him to clarify whether ether is a security. “The negative repercussions of the SEC implicitly or directly classifying ETH as a digital asset security will cascade throughout the digital asset marketplace both in the short and long […]
Bitcoin News
Fed Chair Powell Briefs Lawmakers on US Central Bank Digital Currency Progress
Federal Reserve Chairman Jerome Powell has provided an update to Congress members regarding the Fed’s central bank digital currency (CBDC) work. “If we’re going to have a CBDC, Congress needs to authorize it,” he stressed. Moreover, the Fed chair reportedly said that a framework for stablecoins is needed. Fed Chair Powell on US CBDC and […]
Bitcoin News
Gary Gensler Tells Lawmakers SEC Takes Cybersecurity ‘Seriously’ After X Account Hack
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has assured lawmakers that the securities regulator “takes its cybersecurity obligations seriously.” Lawmakers raised concerns following the hacking of the SEC’s account on social media platform X, where a post falsely announced the approval of spot bitcoin exchange-traded funds (ETFs). Gensler: SEC Takes Cybersecurity Obligations Seriously […]
Bitcoin News
US Lawmakers Press Treasury Secretary Janet Yellen on Crypto Oversight Gaps
Four U.S. lawmakers have pressed Treasury Secretary Janet Yellen regarding crypto oversight gaps. The Financial Stability Oversight Council (FSOC), which Yellen chairs, has issued “repeated warnings about the lack of oversight of the digital asset markets,” the lawmakers detailed, questioning Yellen how the council believes existing laws should apply bitcoin, ether, and non-security crypto assets.
Lawmakers Want Answers From Yellen
Representatives Patrick McHenry, Glenn Thompson, French Hill, and Dusty Johnson sent a letter to Treasury Secretary Janet Yellen concerning crypto regulation on Tuesday following her testimony before the House Committee on Financial Services. In her testimony, Yellen called on Congress to “pass legislation to provide for the regulation of stablecoins and of the spot market for crypto-assets that are not securities.”
McHenry chairs the House Committee on Financial Services; Thompson chairs the House Committee on Agriculture; Hill chairs the Subcommittee on Digital Assets, Financial Technology, and Inclusion; and Johnson chairs the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
The letter explains that following the collapse of crypto exchange FTX, the House Committees on Agriculture and Financial Services “embarked on a historic effort to craft legislation providing increased regulatory oversight over the digital asset markets.” Specifically, the Financial Innovation and Technology Act for the 21st Century (FIT21) “would provide federal regulators with clear authority over the digital asset spot markets and ensure the customer protections seen in the current financial regulatory structure apply to intermediaries and digital asset-related activities.”
The lawmakers pointed out that the Financial Stability Oversight Council (FSOC), which Yellen chairs, has issued “repeated warnings about the lack of oversight of the digital asset markets” and has identified the same gaps they sought to address in their legislation. The gaps include “limited direct oversight of the spot market for digital assets that are not securities, opportunities for regulatory arbitrage, and whether vertically integrated market structures can and should be accommodated under existing laws and regulations.”
Commenting on the authority of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating crypto, the Congress members shared with Yellen:
To highlight the gaps, bitcoin and ether have not been recognized as securities … Because these underlying assets are not securities, neither the CFTC nor SEC has the authority to register and regulate trading platforms or other intermediaries engaged in spot transactions in both of these digital assets.
The lawmakers proceeded to ask the Treasury Secretary some questions “To further understand how FSOC is facilitating coordination and communication between the SEC and CFTC as it relates to federal oversight of the spot market for digital assets that are not securities,” the letter reads. They asked Yellen to respond no later than Feb. 20.
Firstly, the Congress members requested details of the Digital Assets Working Group’s meetings, from its 2017 inception to 2023. Secondly, the lawmakers seek clarification from Yellen regarding the FSOC’s position that securities laws apply to all crypto-asset issuers and secondary transactions involving these assets.
Moreover, referencing SEC Chair Gary Gensler’s claiming that most crypto tokens qualify as securities, they highlighted that “the final investment contract analysis is backwards looking, made by a court after the transaction in question has been completed.” They asked Yellen: “How does this reactive legal authority provide adequate protection for customers, in the absence of comprehensive legislation?”
The lawmakers also asked the Treasury Secretary: “Is it the view of FSOC that both bitcoin and ether are not securities?” In addition, they questioned: “Given the existing authorities of the CFTC over segments of the non-security digital asset market, is it the Council’s view that expanding the CFTC’s jurisdiction to encompass the spot market in non-security digital assets is appropriate?”
What do you think about the lawmakers’ letter to Janet Yellen regarding crypto oversight? Let us know in the comments section below.
US Lawmakers Slam SEC Over Fake Bitcoin ETF Tweet — Say ‘This Failure Is Unacceptable’
U.S. lawmakers are demanding answers from the U.S. Securities and Exchange Commission (SEC) and Chair Gary Gensler regarding the regulator’s X account breach that led to a fake tweet on the social media platform announcing the approval of spot bitcoin exchange-traded funds (ETFs), a decision the commission hadn’t yet made at the time. The SEC says it’s investigating the incident. According to Elon Musk’s X platform, the SEC’s account did not have two-factor authentication enabled at the time the account was compromised.
SEC Investigates X Account Breach, Lawmakers Want Answers
Four U.S. lawmakers sent a letter to U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler on Wednesday “demanding a briefing on the SEC’s compromised X account, which led to a false tweet announcing the approval of bitcoin ETFs on January 9.” The official X account of the SEC was compromised on Tuesday evening.
The letter was signed by the Chairman of the House Financial Services Committee, Patrick McHenry, the Chairman of the Subcommittee on Oversight and Investigations, Bill Huizenga, the Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion, French Hill, and the Chairman of the Subcommittee on Capital Markets, Ann Wagner.
“The U.S. Securities and Exchange Commission’s (SEC) ability to fulfill its mission — to
protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation — is directly tied to the Commission’s ability to communicate with market participants,” the lawmakers wrote. “According to X’s preliminary investigation, the SEC account did not have two-factor authentication enabled and an unidentified individual obtained control of a phone number associated with the SEC’s account,” they added, emphasizing:
This failure is unacceptable, and it is disturbing that your agency could not even meet the standard you require of private industry.
“To better understand how this breach occurred and how the SEC will ensure it cannot happen again, please provide a briefing to Committee staff no later than January 17, 2024,” the letter concludes.
Following the incident, X confirmed that the SEC’s account “was compromised,” noting that a preliminary investigation has revealed that “the compromise was not due to any breach of X’s systems, but rather due to an unidentified individual obtaining control over a phone number associated with the @SECGov account through a third party.” X further noted: “We can also confirm that the account did not have two-factor authentication enabled at the time the account was compromised. We encourage all users to enable this extra layer of security.”
Following the X account breach, the SEC issued a statement explaining:
The SEC will work with law enforcement and our partners across government to investigate the matter and determine appropriate next steps relating to both the unauthorized access and any related misconduct.
Several other lawmakers also criticized the SEC and Chair Gensler after the incident. Senator J. D. Vance demanded an explanation, stating: “It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error.” Senator Bill Hagerty wrote: “Just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened. This is unacceptable. Senator Cynthia Lummis opined: “Fraudulent announcements, like the one that was made on the SEC’s social media, can manipulate markets. We need transparency on what happened.”
What do you think about the SEC letting its X account be compromised and a fake tweet being sent out about the approval of spot bitcoin ETFs? Let us know in the comments section below.