Bitcoin exchange-traded funds are set up again, from November 29 to December 31. 6
Remember when a fleeting mention of Bitcoin, stablecoins, or even central bank digital currencies by a senior government official was seen as major news throughout the cryptoversy? Looks like it’s been forever. As we find ourselves in the midst of the global integration of digital assets, such statements are pouring in every day and are expected. Randal Quarles, outgoing U.S. Fed board member, warned against over-regulation of stablecoins and even chided some of the findings the president’s task force on financial markets made in its November report. . Treasury Secretary Janet Yellen has admitted to being undecided on the issue of the digital dollar, but future Fed Vice President Lael Brainard appears to be very much into the CBDC project. It goes without saying that key economic policy makers are deeply immersed in these questions.
Below is the concise version of the latest Law Decoded newsletter. For the full breakdown of political developments over the past week, sign up for the full newsletter below.
SEC again in the ETF’s hot seat
Meanwhile, the Securities and Exchange Commission is holding firm on Bitcoin spot exchange-traded funds. WisdomTree’s request for a BTC spot product to trade on the CBOE bZx exchange became another request rejected by the regulator. The rationale for the decision was familiar, as the SEC verdict cited the demonstrated lack of ability of the proposed ETF’s sponsors to prevent fraud and manipulation and protect investors.
The SEC has been criticized by several directorates for its discriminatory position of accepting derivatives based on derivatives of an asset while inhibiting products based on the asset itself. The latest round of criticism came from asset manager Grayscale Investments in a letter to SEC Secretary Vanessa Countryman in which the company says failure to deal with both types of BTC products constitutes also a violation of the Administrative Protections Act (APA).
Crypto CEOs to Climb the Hill
Later this week, the U.S. House of Representatives Committee on Financial Services convenes a hearing focused entirely on digital assets and the future of finance – in fact, this is how the hearing went. officially calls. The best crypto CEOs, including those at Circle, FTX, Bitfury and Coinbase, will climb Capitol Hill to advocate for benign regulation of the industry and its role in the country’s economic competitiveness. This could be the biggest opportunity in months for leaders in the crypto space to catch the ears of key lawmakers and directly convey their opinions and recommendations.
The last issue of this newsletter focused at length on the puzzling news from India, where a new bill hinted at a possible blanket ban on all “private cryptocurrencies”. The good news is, things might be less terrible than they initially seemed. The bill’s sponsor, former Indian finance secretary Subhash Garg, went on to say that the language around the potential ban was ‘misleading’ and that the actual form of the country’s crypto regulation will emerge after long discussions. with stakeholders and industry participants.
Additionally, a cabinet note obtained by local media suggested the government was considering a regulatory package regarding crypto assets rather than an outright ban.