Congress

Don’t panic: Only 11 of 330 Elizabeth Warren’s bills have ever passed

Support for the Digital Asset Anti-Money Laundering Act is growing in Congress, but most bills sponsored by legislators never become law.

Senator Elizabeth Warren’s crypto Anti-Money Laundering bill has been causing a massive stir in the crypto industry. But some have pointed out that the senator’s bills have a track record of not going anywhere.

According to data from the bill-tracking platform GovTrack, Warren has introduced 330 bills during her 11 years as a senator. Ten of them were eventually folded into other bills and only one rather obscure bill has ever been enacted as is.

This was the National POW/MIA Flag Act, which requires the prisoner of war/missing in action flag to be displayed alongside the United States flag on certain Federal property.

Don’t panic: Only 11 of Elizabeth Warren’s 330 bills have ever passed

Support for the Digital Asset Anti-Money Laundering Act is growing in Congress, but most bills sponsored by legislators never become law.

United States Senator Elizabeth Warren’s crypto Anti-Money Laundering bill has been causing a massive stir in the crypto industry. But some have pointed out that the senator’s bills have a track record of not going anywhere.

According to data from the bill-tracking platform GovTrack, Warren has introduced 330 bills during her 11 years as a senator. Ten were eventually folded into other bills, and only one relatively obscure bill has ever been enacted.

This was the National POW/MIA Flag Act, which requires the prisoner of war/missing in action flag to be displayed alongside the U.S. flag on some federal property.

More US senators back Elizabeth Warren’s AML bill targeting crypto

The legislation, reintroduced in July, already has the support of several U.S. lawmakers, but critics have suggested it could threaten financial freedom and privacy.

Massachusetts Senator Elizabeth Warren, an outspoken critic of digital assets in the United States government, has announced that five more senators have agreed to cosponsor one of her bills aimed at cracking down on money laundering.

In a Dec. 11 announcement, Senator Warren said Senators Raphael Warnock, Laphonza Butler, Chris Van Hollen, John Hickenlooper and Ben Ray Luján had backed her Digital Asset Anti-Money Laundering Act, reintroduced in July. According to Warren, the legislation specifically targeted illicit uses of crypto assets for money laundering and financing terrorism.

“I’m glad that five new senators are joining the fight to take action, including three members of the Banking Committee,” said Warren. “Our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox.”

House Committee passes bill to ‘preserve U.S. leadership’ in blockchain

The pro-crypto bill is one of many before Congress that aims to promote the country’s deployment and use of blockchain technology.

A United States House Committee has unanimously passed a pro-blockchain bill, which would task the U.S. commerce secretary to promote blockchain deployment and thus potentially increase the country’s use of blockchain technology.

On Dec. 5, the House Committee on Energy and Commerce voted 46-0 to pass H.R. 6572, the Deploying American Blockchains Act of 2023, in a session aiming to clear 44 pieces of legislation.

The 13-page blockchain bill would direct Secretary of Commerce Gina Raimondo to “take actions necessary and appropriate to promote the competitiveness of the United States related to the deployment, use, application, and competitiveness of blockchain technology or other distributed ledger technology.”

House committee passes bill to ‘preserve US leadership’ in blockchain

The pro-crypto bill is one of many before Congress that aims to promote the country’s deployment and use of blockchain technology.

A United States Congress committee has unanimously passed a pro-blockchain bill, which would task the U.S. commerce secretary with promoting blockchain deployment and thus potentially increasing the country’s use of blockchain technology.

On Dec. 5, the House Committee on Energy and Commerce voted 46–0 to pass H.R. 6572, the Deploying American Blockchains Act of 2023, in a session aiming to clear 44 pieces of legislation.

Crypto-friendly US lawmaker Patrick McHenry won’t seek reelection in 2024

All 435 seats in the U.S. House of Representatives will be up for grabs in the 2024 election, with the future of crypto bills in the House Financial Services Committee uncertain.

Representative Patrick McHenry, chair of the United States House Financial Services Committee and a proponent of many pieces of crypto-focused legislation, will be retiring from Congress.

In a Dec. 5 statement, McHenry said he would not seek reelection to the U.S.

“This is not a decision I come to lightly, but I believe there is a season for everything and — for me — this season has come to an end,” said McHenry.

During his time as chair of the House Financial Services Committee, McHenry was one of the few crypto proponents in Congress who pushed for passing bills to establish regulatory clarity for digital assets.

“Chairman McHenry is an unparalleled leader who has consistently recognized the importance of responsible innovation and fit-for-purpose regulation in the financial sector,” said Sheila Warren, CEO of the Crypto Council for Innovation.

Jake Chervinsky, soon-to-be former chief policy officer of the Blockchain Association, thanked McHenry on X (formerly Twitter) for his “leadership on crypto policy.” Some industry leaders on the social media platform expressed regret at the North Carolina Representative’s departure, including Coinbase president Emilie Choi.

You’ve had an incredible run.

Read more

US House committee chair repeatedly presses SEC chair: ‘Is Ether a commodity or a security?’

Securities and Exchange Commission chair Gary Gensler has said the SEC considers Bitcoin a commodity, but refused to pin down Ether at an oversight hearing.

Patrick McHenry, chair of the United States House Financial Services Committee, jumped right into criticism of the Securities and Exchange Commission and its leadership over digital assets at an oversight hearing.

In an April 18 hearing on oversight of the SEC, Representative McHenry used his opening statement to bring up the commission’s “punishing” of digital asset firms through regulation by enforcement without a clear path to compliance. The congressman reiterated calls for U.S. lawmakers to provide “clear rules of the road” for crypto through legislation. In addition, he pressed SEC chair Gary Gensler to give a definitive answer on whether Ether (ETH) qualified as a security under the SEC’s purview, or a commodity under the Commodity Future Trading Commission’s.

McHenry repeatedly talked over Gensler’s responses that did not include specifics, citing the SEC chair’s willingness to label Bitcoin (BTC) as a commodity and hinting at private discussions on ETH prior to the hearing.

“Clearly an asset cannot be both a commodity and a security,” said McHenry. “I’m asking you, sitting in your chair now, to make an assessment under the laws as exist, is Ether a commodity or a security?”

He added:

“You have pre-judged on this: you’ve taken 50 enforcement actions. We’re finding out as we go, as you file suit, as people get Wells notices, on what is a security in your view, in your agency’s view.”

.@GaryGensler's tenure has been defined by recklessness. His agenda runs roughshod over process, precedent, & the #SEC’s statutory authority. I look forward to speaking with him today.

Tune in at 10:00am https://t.co/qNdJ4wDkw5

— Patrick McHenry (@PatrickMcHenry) April 18, 2023

Representative Maxine Waters, ranking member of the House committee, did not press Gensler on ETH but focused her questioning on the SEC’s enforcement capabilities. According to the SEC chair, the commission had the means, the authority, and the will to bring crypto firms into regulatory compliance.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

This is a developing story, and further information will be added as it becomes available.

Gary Gensler refuses to answer if ETH is a security: SEC hearing

SEC Chair Gary Gensler has said the SEC considers Bitcoin a commodity but refused to pin down Ether at an oversight hearing.

In an April 18 hearing on oversight of the SEC, Representative McHenry used his opening statement to bring up the commission’s “punishing” of digital asset firms through regulation by enforcement without a clear path to compliance. The member of Congress reiterated calls for U.S. lawmakers to provide “clear rules of the road” for crypto through legislation. In addition, he pressed SEC Chair Gary Gensler to give a definitive answer on whether Ether (ETH) qualified as a security under the SEC’s purview or a commodity under the Commodity Future Trading Commission’s.

He added:

“You have pre-judged on this: You’ve taken 50 enforcement actions. We’re finding out as we go, as you file suit, as people get Wells notices, on what is a security in your view, in your agency’s view.”

.@GaryGensler's tenure has been defined by recklessness. His agenda runs roughshod over process, precedent, & the #SEC’s statutory authority. I look forward to speaking with him today.

Tune in at 10:00am https://t.co/qNdJ4wDkw5

— Patrick McHenry (@PatrickMcHenry) April 18, 2023

Representative Maxine Waters, ranking member of the House committee, did not press Gensler on ETH but focused her questioning on the SEC’s enforcement capabilities. According to the SEC chair, the commission had the means, the authority and the will to bring crypto firms into regulatory compliance.

Many in and out of the crypto space have criticized the SEC under Gensler for taking enforcement actions against firms involved with digital assets and blockchain technology. On April 17, the SEC charged crypto asset trading platform Bittrex and its co-founder William Shihara for offering unregistered securities, and a Wells notice issued to Coinbase in March suggests the major exchange could be next.

Gensler claimed the crypto market was “rife with noncompliance”, in many cases firms willfully doing so. His written testimony said compliance with the SEC extended to decentralized finance platforms — an indication of the commission proposing changing its rules to include DeFi in exchanges under its purview.

The April 18 hearing was the first time Gensler had directly addressed the House committee since October 2021 — prior to the collapse of FTX, Celsius, BlockFi and crypto-friendly banks including Signature, Silicon Valley Bank and Silvergate. The Financial Services Committee will also meet to discuss stablecoin regulation in an April 19 hearing.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

FDIC plans to return $4B in Signature crypto deposits ‘by early next week’ — Martin Gruenberg

The Treasury Department’s undersecretary for domestic finance, Nellie Liang, said at the same hearing she didn’t believe crypto “played a direct role” in the failure of the banks.

Martin Gruenberg, chair of the United States Federal Deposit Insurance Corporation, has said the agency plans to return roughly $4 billion in deposits connected to Signature Bank’s digital asset banking business by early April.

In a March 29 hearing of the U.S. House Financial Services Committee exploring federal regulators’ responses to recent bank failures, Gruenberg said the deposits that were not included in the bid from a New York Community Bancorp subsidiary for Signature would be returned “by early next week.” There are $4 billion in deposits tied to digital assets, and reports had indicated that the FDIC would close all crypto-related accounts not part of the NYCB deal by April 5 if depositors didn’t move their funds.

*FDIC chair Martin Gruenberg speaking at a March 29 hearing of the U.S. House Financial Services Committee*

According to Gruenberg, Signature’s payments platform Signet — which, along with the digital asset deposits, was not included in the NYCB bid — was “in the process now of being marketed” to potential buyers. The FDIC, along with New York financial regulators, closed the crypto-friendly bank on March 12, citing risks to the U.S. economy after Silicon Valley Bank and Silvergate Bank had failed.

Nellie Liang, undersecretary for domestic finance at the U.S. Treasury Department, said she didn’t believe crypto “played a direct role” in the failure of either Signature or Silicon Valley Bank:

“I know that Signature had activities involved in digital assets, but I don’t believe that is the main [cause].”

The March 29 hearing marked the second time that Liang, Gruenberg, and Fed Vice Chairman for Supervision Michael Barr addressed lawmakers following the collapse of three major banks in the United States. The Senate Banking Committee held a hearing on March 28, in which Gruenberg said Silvergate Bank had not adequately managed risks that led to its failure.

Though some lawmakers and regulators have seemingly pointed to the banks’ ties to digital asset companies, many have criticized the association as being without merit. Former House of Representatives member and Signature board member Barney Frank has said that officials wanted to send a “very strong anti-crypto message,” claiming that the bank had no issues with solvency at the time of its closure.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Ted Cruz and Ron DeSantis take on the ‘digital dollar’: Law Decoded, March 20–27

Two lawmakers in one week weighed in against the possibility of a United States central bank digital currency.

Two lawmakers in one week weighed in against the possibility of a United States central bank digital currency (CBDC). Florida Governor Ron DeSantis — expected by many to throw his hat into the ring for the 2024 U.S. presidential race — has called for a ban on a digital dollar in the state. DeSantis spoke out against the Federal Reserve issuing and controlling a CBDC, claiming the initiative would grant “more power” to the government.

Texas Senator Ted Cruz went even further, introducing a bill to block the Fed from launching a “direct-to-consumer” central bank digital currency. Cruz stated it’s “more important than ever” to ensure U.S. policy on digital currencies protects “financial privacy, maintains the dollar’s dominance and cultivates innovation.” The anti-CBDC bill is a second attempt by Senators Cruz, Braun and Grassley, who introduced a similar bill on March 30, 2022, to prohibit the Fed from issuing a CBDC directly to individuals.

Representative Tom Emmer introduced another anti-CBDC bill in February. The bill could prohibit the Fed from issuing a digital dollar directly to anyone, bar the central bank from implementing monetary policy based on a CBDC, and require transparency for projects related to a digital dollar. It’s also presented as an apparent effort to protect Americans’ right to financial privacy.

G7 to collaborate on tighter crypto regulation

The next G7 meeting in May might bring a push from seven of the world’s advanced economies for stricter regulations on cryptocurrencies globally. Together, leaders from Japan, the United States, the United Kingdom, Canada, France, Germany and the European Union will outline a cooperative strategy to increase crypto transparency and enhance consumer protections, as well as address potential risks to the global financial system, officials told journalists.

Recommendations on the regulation, supervision and oversight of global stablecoins, crypto assets activities and markets are scheduled to be delivered by July and September 2023. It is unclear, however, what the overall tone of the recommendations will be.

IRS calls for public feedback on taxing NFTs

The U.S. Internal Revenue Service (IRS) said it plans to release guidance on having nonfungible tokens (NFTs) treated as collectibles under the U.S. tax code. According to the government body, collectibles under U.S. tax law “do not have as advantageous capital-gains tax treatment as other capital assets,” seemingly referring to how crypto assets are currently taxed in the country. Under the U.S. tax code, selling collectibles such as coins or artwork is subject to a maximum capital gains tax rate of 28%. The proposed IRS guidance could apply the same standard to an NFT certifying ownership of a coin, piece of art or similar collectible.

Texas lawmaker introduces resolution to protect Bitcoin miners

Cody Harris, a member of the Texas House of Representatives, has introduced a resolution to have the legislature say the “Bitcoin economy is welcome” in the state. Harris encourages Texas lawmakers to “express support for protecting individuals who code or develop on the Bitcoin network,” as well as miners and Bitcoiners operating in the Lone Star State. House Concurrent Resolution 89, if adopted, would largely not apply to Texas’ laws and regulations but instead express a certain sentiment among lawmakers.