The entire cryptocurrency industry is waking up to a new reality. Politicians and regulators have decided to wade into the space, which had flown mainly under their radar until now. A House committee chair is launching a working group; the Securities and Exchange Commission is seeking new authorities to regulate digital assets as securities; and the Senate-passed infrastructure bill includes $28 billion in tax revenues from crypto transactions. This last handful of weeks has arguably seen more regulatory activity around digital currencies since the name Satoshi Nakamoto first entered the popular lexicon. Anyone whose business deals in this asset class …

The U.S. Securities and Exchange Commission has reportedly signed a $125,000 deal with blockchain analytics firm AnChain.AI to help monitor and regulate the decentralized finance industry. According to a Friday report from Forbes, an AnChain.AI company spokesperson confirmed the agreement with the federal regulator, saying the SEC and blockchain firm had the option to sign up to five separate 1-year contracts for $125,000 each, or $625,000 total. The first contract reportedly began in May. “The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets,” said AnChain.AI CEO and co-founder Victor Fang. “We …

When does decentralization stop being an experiment in technological democracy and start being a way to avoid accountability? That’s the question at the heart of a potential $100 million arbitration lawsuit against cryptocurrency exchange Binance, where close to 1,000 traders seek damages for losses suffered during the site’s outage on May 19. Binance experienced technical issues for several hours on May 19 amid one of the worst market crashes of the year as the global cryptocurrency market suffered a 33% drop. Traders were unable to execute trades for the duration of Binance’s outage, and many found their accounts depleted when …

In recent weeks, the blockchain industry made headlines as it engaged in intense discussions with lawmakers after a $28 billion crypto tax reporting proposal unexpectedly became part of the Bipartisan Infrastructure Deal (BID). Ultimately, the BID language was unchanged, leaving uncertainty for the companies that build on blockchain, especially those dedicated to its value beyond cryptocurrency trading. Though unsuccessful in their bid to amend the language, many are claiming victory over the industry finding its voice in the negotiations. Now, it needs to use that voice to refocus the conversation on what really matters — the fact that blockchain technology …

Powers On... is a monthly opinion column from Marc Powers, who spent much of his 40-year legal career working with complex securities-related cases in the United States after a stint with the SEC. He is now an adjunct professor at Florida International University College of Law, where he teaches the course “Blockchain, Crypto and Regulatory Considerations.” More and more, governments are fearing that they will lose control over aspects of their respective legitimate financial systems, including capital raising and trading, to the hundreds of unlicensed, unregulated centralized and decentralized crypto exchanges worldwide. There is a clear rising chorus of alarm …

Dawn Stump, one of four commissioners currently serving at the Commodity Futures Trading Commission, or CFTC, has released a statement clarifying the agency's authority with respect to digital assets. In a Monday statement, Stump said the CFTC is empowered with both regulatory and enforcement authority for commodities. She did not specifically say that digital assets were cash-like commodities in the eyes of the regulatory body, but “even if a digital asset is a commodity, it is not regulated by the CFTC.” According to the commissioner, however, the agency is within its power to regulate derivatives on digital assets, “such as …

Blockchain, the underlying technology of cryptocurrencies like Bitcoin (BTC), has already gained mainstream popularity, according to global finance executives polled by Big Four auditing firm Deloitte. According to Deloitte’s “2021 Global Blockchain Survey,” 81% of the financial services industry (FSI) executives believe that blockchain technology is “broadly scalable” and has achieved mainstream adoption. Released on Thursday, the report queried 1,280 FSI professionals based in Brazil, China, Germany, Hong Kong, Japan, Singapore, South Africa, the United Arab Emirates, the United Kingdom and the United States. The survey covered general FSI cohort respondents who had “at least a general understanding” of blockchain …

Beginning this week, residents of the United Kingdom will be able to buy, hold and sell cryptocurrencies through PayPal for the first time — marking a significant milestone for a company that began offering digital asset services less than a year ago. The global payments provider announced Sunday that U.K. customers will soon have access to Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) through PayPal’s website and mobile app. The announcement marks the first expansion of PayPal’s cryptocurrency services beyond the United States — a service that first launched in November of last year. Jose Fernandez da …

Cryptocurrency brought us peer-to-peer payments that continue to elevate participation in the global economy for millions of people without access to traditional banking services. The rise of decentralized finance (DeFi) promises to further expand access to financial services, including savings, lending, derivatives, asset management and insurance products. This innovation, which empowers financial inclusion, should be allowed to flourish in a regulated environment where individuals and institutions are protected and suspicious activity is identified and reported. But how do you regulate these decentralized products without completely removing the core attributes of financial inclusion and decentralization? Know Your Customer (KYC) procedures are …

Speaking at an online event organized by the Council of the Americas, Roberto Campos Neto, president of the Central Bank of Brazil, shared his views on transparent payments networks, the country’s central bank digital currency project and crypto regulation. Campos Neto has been a staunch advocate of the cryptocurrency space since taking office in 2019. His progressive policy-making has been an encouragement to investors and organizations alike, ambitious to modernize the Brazilian financial infrastructure. During the event, Campos Neto mentioned several ongoing discussions with Brazil’s Securities and Exchange Commission on how to welcome cryptocurrencies into the regulatory landscape: “The financial …

Brian Quintenz, who has served as one of the commissioners with the Commodity Futures Trading Commission, or CFTC, reportedly plans to leave the agency on Aug. 31. According to a Thursday report from the Wall Street Journal, Quintenz is expected to announce his move into the private sector after leaving the CFTC later this month. He hinted that his future career could include a focus on “innovation, particularly related to cryptocurrency and DeFi” and planned to continue advocating for the crypto space. Quintenz was first nominated to the position by President Barack Obama in March 2016 before being re-nominated by …

Jay Clayton, the former chair of the United States Securities and Exchange Commission, has accepted an advisory role with blockchain infrastructure provider Fireblocks — marking a significant addition to a company that only recently achieved unicorn status. In joining Fireblocks’ advisory board, Clayton acknowledged that he shares the company’s view that “digital asset custody requires the same level of service as traditional custody while also striving for better regulatory outcomes.” Michael Shaulov, CEO and co-founder of Fireblocks, said Clayton will “help to advance further the safety and security of the Fireblocks infrastructure for capital market participants and investors.” Clayton headed …