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Legislation Decoded: Publish-ETF coverage panorama and Novi fears, Oct. 18–25

10/25/2021

The Bitcoin ETF approval has been the most important, however on no account the one, policy-related story of the final week.

The most important regulatory story of the week, if not the yr, has been america Safety and Alternate Fee’s lack of opposition to the launch of the first-ever Bitcoin (BTC) exchange-traded funds, which took eight lengthy years to materialize. Whereas the primary ETFs are monitoring CME-traded Bitcoin futures quite than the asset’s spot value, the crypto house is already anticipating a pure-Bitcoin ETF as a logical subsequent step. This bar would possibly show to be immensely troublesome to clear, nonetheless, as SEC Chair Gary Gensler appears far much less satisfied of the stringency of investor protections that such merchandise provide.

Under is the concise model of the newest “Legislation Decoded” publication. For the complete breakdown of coverage developments over the past week, register for the complete publication beneath.

Crypto and the nationwide safety recreation

The U.S. Treasury Division revealed final week that the rising use of digital property poses a rising risk to the nation’s sanctions program. Adversaries can now use these various monetary rails to mitigate the consequences of U.S.-imposed sanctions inside the dollar-denominated realm. Just some days later, a high-ranking Treasury official reiterated the division’s heightened give attention to concentrating on crypto infrastructure utilized by dangerous actors. The official additionally made it clear that there’s an understanding inside the division that the majority crypto transactions serve completely respectable functions.

Novi nervousness

It took mere hours for a bunch of Senate Democrats to get extraordinarily nervous about Fb’s restricted pilot of its digital pockets, Novi, run in partnership with Coinbase and Paxos. The check noticed a remittances hall opening between the U.S. and Guatemala for a small variety of customers, whereby they might ship and obtain Pax Greenback (USDP), a dollar-backed stablecoin.

A bunch of 5 senators, together with vocal crypto critic Elizabeth Warren and Banking Committee Chairman Sherrod Brown, responded with a letter condemning Fb’s “revived effort to launch a cryptocurrency and digital pockets,” citing quite a few scandals surrounding the corporate as a justification for why it can’t be trusted to return anyplace close to launching non-public cash.

The thunder from down beneath

Large information from Australia captured the crypto crowd’s consideration as an Australian Senate committee tasked with devising measures to make the nation a number one expertise and monetary middle rolled out a far-reaching report on the state and prospects of crypto regulation. The report, which was met favorably by the trade, might lay the groundwork for Australia to hitch the ranks of the world’s extra crypto-friendly jurisdictions.