digital assets

Law Commission for England and Wales proposes reforms for digital assets

The U.K. Law Commission called for cryptocurrencies and digital assets to be classed as “data objects” in new reforms aimed at fostering growth and legal protection.

The Law Commission of England and Wales is proposing a number of law reforms to provide wider recognition and legal protections for cryptocurrency and digital asset users.

The institution is reviewing existing legislation on digital assets at the request of the British government in an effort to accommodate the space as it continues to grow in reach and use. The Law Commission announced the call for public consultation from legal experts, technologists and users on Thursday.

The proposal highlights the evolving nature and multi-faceted use of cryptocurrencies, nonfungible tokens (NFTs) and other digital assets. Cryptocurrencies are used as a means of payment, store of value and as a digital representation of ownership or rights to equities and debt securities.

The Law Commission seeks to deliver “wider recognition and legal protections for digital assets” to give a wider range of people, businesses and institutions access to the burgeoning sector. The consultation paper examines how personal property laws apply to digital assets and why they should be classed under this umbrella but in a unique category.

Related: UK government targets crypto in latest legislative agenda

Four key proposals are put forward, starting with explicitly defining a distinct legal category of personal property to accommodate the unique features of digital assets under the banner of “data objects.”

The second will be creating different options for the development and implementation of “data objects” around existing law. Clarifying law around ownership and control of digital assets as well as transfers and transactions are the final two recommendations put forward.

A statement from Commercial and Common Law commissioner professor Sarah Green highlighted the institution’s focus on the unique features of the technology in order to provide a strong legal foundation for the ecosystem to develop organically:

“Our proposals aim to create a strong legal framework that offers greater consistency and protection for users and promotes an environment that is able to encourage further technological innovation.”

The proposed legal reforms are in line with governmental plans for England and Wales to become a hub for cryptocurrency and digital asset systems. The Law Commission’s deadline for public responses to its consultation paper is set for November 4, 2022.

UK Treasury Committee opens inquiry into crypto industry

The public has until Sept. 12 to submit evidence, which the committee may use in its report to Parliament on the risks and opportunities related to crypto and DLT.

The Treasury Committee of the United Kingdom’s House of Commons has called on the public to submit evidence related to the role of crypto’s risks and opportunities.

In a Tuesday notice, the committee said it had opened an inquiry allowing people to write in about the role of crypto assets in the United Kingdom. The Treasury Committee said it would be exploring how the U.K. government, the Financial Conduct Authority, or FCA, and the Bank of England could balance regulation “to provide adequate protection for consumers and businesses without stifling innovation” as well how cryptocurrencies and distributed ledger technology could impact individuals, businesses and financial institutions.

The British public has until Sept. 12 to submit evidence, which the committee may use in its report to Parliament. Among the proffered questions were the opportunities and risks of a central bank digital currency from the Bank of England, what the U.K. government can learn from regulators and lawmakers addressing crypto in other countries, and the “environmental and resource intensity of using crypto-asset technology.”

“What impact could the use of crypto-assets have on social inclusion?” asked the committee. “Are the government and regulators suitably equipped to grasp the opportunities presented by crypto-assets, whilst at the same time mitigating against the risks? What opportunities and risks could the use of crypto-assets — including non-fungible tokens — pose for individuals, the economy and the workings of both the public and private sectors?”

The inquiry followed the government’s July 5 request that the public weigh-in on taxation related to decentralized finance through crypto loans and staking. On Tuesday, deputy governor for financial stability at the Bank of England Jon Cunliffe also called for regulators to ​​“get on with the job” of incorporating crypto and blockchain into existing frameworks.

Related: Enforcement and adoption: What do UK’s recent regulatory aims for crypto mean?

A scandal around soon-to-be-former Prime Minister Boris Johnson has shaken up leadership among financial lawmakers and regulators in the United Kingdom. Chancellor of the Exchequer Rishi Sunak and Economic Secretary John Glen resigned in protest of the prime minister’s actions but were later replaced with Nadhim Zahawi and Richard Fuller, respectively. Hong Kong Securities and Futures Commission CEO Ashley Alder will also become the next chair of the FCA starting in January 2023.

US Treasury calls for public comment on digital asset policy, following Biden’s executive order

President Joe Biden’s executive order on crypto from March directed the Treasury Department to take the lead among other government agencies in developing policy recommendations.

The United State Department of the Treasury has requested comments from the public on the potential opportunities and risks of digital assets in compliance with President Joe Biden’s executive order from March.

In a Tuesday announcement, the U.S. Treasury said it was asking for input from the public that will “inform its work” in reporting to the president the possible implications of digital assets on the financial markets and payment infrastructures. Biden’s executive order directed the Treasury Department to take the lead among other government agencies in developing policy recommendations aimed at mitigating both systemic and consumer risks around cryptocurrencies.

“For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams,” said Nellie Liang, Under Secretary of the Treasury for Domestic Finance. “The Treasury Department is seeking to benefit from the expertise of the American people and market participants by soliciting public comment as we engage in this important work.”

In the request for comment published in the Federal Register on July 8, Treasury noted that the lack of financial education when handling digital assets could be a factor in rolling out any related policy to vulnerable communities:

“The rise in use of digital assets, and differences across communities, may also present disparate financial risk to less informed market participants or exacerbate inequities. It is critical to ensure that digital assets do not pose undue risks to consumers, investors, or businesses, and to put in place protections as a part of efforts to expand access to safe and affordable financial services experienced by more vulnerable populations.”

The public has until August 8 to submit comments to Treasury on what people believe could be the implications of mass adoption of crypto, both for individual investors and businesses, and the potential impact of introducing new financial products and services. In addition, the government department requested Americans weigh in on potential risks, including losing private keys and the “authenticity of digital assets, including NFTs.”

Related: Biden’s executive order promises great things for the crypto industry — Eventually

On July 7, Treasury delivered to President Biden a framework on crypto for U.S. government agencies to work with their foreign counterparts, in accordance with the executive order. Liang has previously called on Congress to pass legislation around stablecoins, and worked to promote financial literacy of digital assets among people who have limited access to mainstream financial services.

US Treasury calls for public comment on digital asset policy, following Biden’s executive order

President Joe Biden’s executive order on crypto in March directed the Treasury Department to take the lead among other government agencies in developing policy recommendations.

The United State Department of the Treasury has requested comments from the public on the potential opportunities and risks of digital assets in compliance with President Joe Biden’s executive order from March.

In a Tuesday announcement, the U.S. Treasury said it was asking for input from the public that will “inform its work” in reporting to the president on the possible implications of digital assets on the financial markets and payment infrastructures. Biden’s executive order directed the Treasury Department to take the lead among other government agencies in developing policy recommendations aimed at mitigating both systemic and consumer risks around cryptocurrencies.

“For consumers, digital assets may present potential benefits, such as faster payments, as well as potential risks, including risks related to frauds and scams,” said Nellie Liang, Under Secretary of the Treasury for Domestic Finance. “The Treasury Department is seeking to benefit from the expertise of the American people and market participants by soliciting public comment as we engage in this important work.”

In the request for comment published in the Federal Register on Friday, Treasury noted that the lack of financial education when handling digital assets could be a factor in rolling out any related policy to vulnerable communities:

“The rise in use of digital assets, and differences across communities, may also present disparate financial risk to less informed market participants or exacerbate inequities. It is critical to ensure that digital assets do not pose undue risks to consumers, investors, or businesses, and to put in place protections as a part of efforts to expand access to safe and affordable financial services experienced by more vulnerable populations.”

The public has until August 8 to submit comments to the Treasury on what people believe could be the implications of mass adoption of crypto, both for individual investors and businesses, and the potential impact of introducing new financial products and services. In addition, the government department requested Americans weigh in on potential risks, including losing private keys and the “authenticity of digital assets, including NFTs.”

Related: Biden’s executive order promises great things for the crypto industry — Eventually

On July 7, the Treasury delivered to President Biden a framework on crypto for U.S. government agencies to work with their foreign counterparts in accordance with the executive order. Liang has previously called on Congress to pass legislation around stablecoins and worked to promote financial literacy of digital assets among people who have limited access to mainstream financial services.