Huge thanks to the @Algorand community for the warm welcome! I’m beyond excited to be joining the team @AlgoFoundation and can’t wait to dive in and build with all of you. Let’s goooo!! ✨🚀 #Algorand #AlgoFam $ALGO

Excited @AlgoFoundation is now a member of @BlockchainAssn! 🇺🇸🤝 This alliance plants an even bolder Algorand flag in the US. A seat in DC lets us push smart pro-innovation policy, spotlight Algorand tech, and give Algorand builders a louder megaphone. #Algorand #algofam $ALGO

1/7 🚨 The Senate just passed the GENIUS Act (68–30) — the first federal framework for stablecoins in the U.S. 🇺🇸 #GENIUSAct

Big win for crypto — the Senate just moved stablecoin regs forward 🚀 Good news for @lofty_ai, @Alpha_Arcade, and the @PeraAlgoWallet Pera MasterCard crew on #Algorand. Clearer rules = more users, more trust, more growth. Let’s build!! 🛠️💰🎮 #Web3 #Stablecoins #CryptoNews #algofam $ALGO

Huge day for crypto 🔥 The SEC says protocol staking isn’t a security ✅ and the House just released the CLARITY Act — their version of market structure legislation 🏛️ Big win for the Algorand blockchain, which is powered by a proof-of-stake consensus mechanism and the entire community participating in protocol staking to secure and maintain the Algorand protocol 🙌 #Algorand #ALGO #Crypto @AlgoFoundation #algofam

Gotta say—this SEC is more knowledgeable about crypto than ever before. And honestly, they’ve been great to deal with. 🙌 🙏 Smart convos and real engagement means fewer roadblocks for developers building on Algorand. 🛠️ 👏💯 #Algorand @AlgoFoundation #algofam $ALGO #Crypto #Regulation

1/ Paul Atkins just rolled out “Project Crypto,” an SEC-wide push to bring U.S. markets on-chain. Great news for #Algorand and our community. Some highlights below 🚀 @AlgoFoundation @Algorand #ProjectCrypto #algofam

Next week is a big week for crypto: House votes on Anti-CBDC, CLARITY & GENIUS bills; GENIUS could reach POTUS days later. Need to keep the pressure on!! Steps toward clarity for #Algorand builders. 👀 @AlgoFoundation $ALGO #algofam theblockchainassociation.org…

I verified my #NFD on #Algorand! nfd-verify:1868911 app.nf.domains/name/jenniele… via @nfdomains

The CLARITY Act has PASSED the House 294-134, with 78 Democrats in favor!! Let’s gooooo!!!! @AlgoFoundation #CryptoPolicy #algofam $ALGO

History made: the GENIUS Act is officially law, sweeping away regulatory fog and supercharging crypto innovation. #Algorand builders—your runway just got a lot longer. 🚀📜 #CryptoPolicy @AlgoFoundation #algofam $ALGO

The GENIUS Act has PASSED the House 308-122 with 102 Democrats in favor!! Historic moment for crypto industry!!! First comprehensive federal law to regulate payment stablecoins — a major breakthrough after years of gridlock. Congratulations everyone!! 🔥🔥🔥

I don’t care how CoinGecko categorizes $ALGO. I care how the regulators and law-makers view ALGO and within the past five months Commissioner Peirce has said the majority of today’s digital assets do not fit the statutory definition of a security. ALGOs themselves ≠ securities. Period. And yes, we have, and will continue to advocate this stance.

PWG crypto report: SEC+CFTC to enable federal spot trading; safe harbors & sandboxes (incl. DeFi); new bank guidance for custody/tokenization; implement stablecoin law; anti-CBDC; tax clarity. Bullish for #Algorand and our community!!! @AlgoFoundation #algofam

Excited to meet with the BA this week in Chicago!!! Together we can advance clear policy, expand access, and help teams build on Algorand. The forever goal = accelerate adoption and strengthen the Algorand community. #Algorand @AlgoFoundation #algofam $algo

7/7 Translation: Builders, banks & fintech now have a clearer runway to launch compliant USD stablecoins on Algorand. Let’s build. 🚀 #Stablecoins #Algorand @AlgoFoundation $ALGO

#NewProfilePic @ShittyKitties_ @AlgoFoundation $ALGO

3/7 Algorand’s ASA tokens already ship native freeze, clawback & default-frozen flags — exactly the compliance knobs the bill demands. 🔐 #Algorand #algofam

6/7 Already on Algorand: Lofty AI tokenizes real estate w/ USDCa; Folks Finance lends/borrows USDCa; Tinyman trades ALGO↔️USDC; Alpha Arcade settles bets in USDCa; Pera Card adds tap-to-pay. @lofty_ai @PeraAlgoWallet @FolksFinance @tinymanorg

Hi. Yes, we submitted a response to the RFI through the Blockchain Association. We also submitted separate initial feedback on the RFIA.

Crypto Week in Congress hasn’t gone as planned — breakdown below. 1️⃣ Procedural fireworks: After a nine-hour standoff Wednesday night, the House finally advanced three crypto bills—GENIUS, CLARITY & the Anti-CBDC Act—on a tight 217-212 vote tied to FY ’26 defense funding.

Yes, yes you can. Love your support and enthusiasm!

@SECPaulSAtkins outlined plans for crypto innovation in the US by using standards like ERC3643. Below we discuss why Algorand’s ASA framework exceeds these standards & is best-positioned to support the tokenization movement #algorand #algofam $ALGO bit.ly/4liqE3E

5/7 Algorand’s carbon-neutral PoS hits the ESG checkbox for institutions eyeing regulated digital dollars. 🌱

4/7 Reserve addresses + on-chain supply visibility match the Act’s 1:1 backing & audit requirements, no extra code needed. 📊

2/7 One federal rulebook > 50 state regimes. Issuers can now serve U.S. users without a maze of money-transmitter licenses. 💡

Had a blast diving into crypto crime on the Clear Crypto podcast with @Cointelegraph and @StarkWareLtd — from exploits to enforcement and what it all means for web3. 🎙️⚖️ 🎧 Full episode here: cointelegraph.com/video/clea…

The house has begun debate on the CLARITY Act — link to ongoing debate below piped.video/live/fXHO7mNBiHY… @AlgoFoundation #algofam $ALGO #Algorand

Still reading through all 236 pages, but it seems in line with recent market structure bills – it provides that CFTC has primary jurisdiction, with a registration path for exchanges; says that secondary sales of digital assets are not securities; has a process for determining whether a blockchain network is “mature”; and provides developers a pathway to raise funds under SEC rules.

DeFi is different!!

4/ “Most crypto assets are not securities.” Staff will publish clear guidelines to tell when a token is (or isn’t) a security / investment contract 🧭✅

“Our goal should be that issuers no longer exclude Americans from their distributions to avoid legal complexity and lawsuits” 🗽👐 🇺🇸

2/ “Many of the Commission’s legacy rules and regulations do not make sense in the twenty-first century - let alone for on-chain markets.” 🔧⛓️

3/ Priority: stand up - fast - a regulatory framework for crypto asset distributions in the U.S., so teams don’t need to go offshore 🏁🇺🇸

5/ For crypto transactions that fall under securities laws: purpose-fit disclosures, exemptions & safe harbors - including for ICOs, airdrops, and network rewards 🧰📜

10/ Also contemplating an innovation exemption that would allow registrants and non-registrants to quickly go to market with new business models and services that do not neatly fit within our existing rules and regulations 👏👍⚡️

11/ Full speech on the SEC website 📰👇 sec.gov/newsroom/speeches-st…

4️⃣ What happens TODAY: ✅ GENIUS Act (stablecoins) → final House vote → President’s desk ✅ CLARITY Act (market structure) → House vote → Senate ✅ Anti-CBDC Act → House vote and NDAA add-on #CryptoWeek #CryptoPolicy @AlgoFoundation #algofam #Algorand $ALGO

9/ Developers: protect pure code publishers; draw lines between intermediated vs. disintermediated; ensure DeFi can operate in our securities markets without duplicative or unnecessary regulation ⚖️ #defi #amm #DEX

7/ Custody: adapt the existing regime to facilitate the custody of crypto assets, including possible exemptive or other relief, in addition to changes to the rules themselves 🔐🏦

8/ Markets: enable “super-apps” and allow non-security crypto assets - even when tied to investment contracts - to trade on venues outside SEC registration in certain cases 📈🏛️

In a significant push for crypto policy advancement, I headed to Washington D.C. this week with my colleagues Eme Housser, Director of Legal and Regulatory Affairs, and Josh Deems (@Josh_Deems), Head of Americas, for a series of meetings with key regulatory stakeholders. The two-day sprint included discussions with nine Congressional offices, Senate Banking Committee staff, House Ways and Means staff, and evening gatherings with representatives from industry groups, CFTC, SEC, and Congressional staff. At the heart of these discussions was that protocol staking deserves its place in Ethereum ETFs, and its current exclusion by the SEC raises concerns about both procedure and their commitment to investor protection. While US issuers and investors grapple with this restriction, other major capital markets including Germany, Canada, and Switzerland have already embraced staking in their ETP/ETFs. Special thanks to Alison Mangiero with the Proof of Stake Alliance (@TeamPOSA) and the Crypto Council for Innovation (@crypto_council) for helping to set up and coordinate these meetings and for championing this important issue with us. Unlike Bitcoin, stablecoins, and tokenized RWAs, protocol staking has lacked a dedicated champion in Washington and that is rapidly changing. Through collaboration with POSA and CCI, Figment is supporting efforts to build a bipartisan coalition of lawmakers committed to bringing clarity to staking. Key focus areas include protecting protocol staking from being incorrectly categorized alongside earn and yield products, the taxation of staking rewards, and inclusion of staking in US-listed ETPs. Additionally, with new SEC leadership rapidly approaching (Paul Atkins likely getting confirmed and taking office in Q2), optimism surrounding staking in ETPs is very high. Commissioner Peirce (@HesterPeirce) has previously indicated support for eventually including staking in ETFs and one lawmaker even called ETP staking “low hanging fruit,” which bodes well for seeing a shift in the early days of 2025. Perhaps most encouraging is the unprecedented level of crypto knowledge among Congressional staff and members, coupled with a refreshing willingness to treat crypto as an important bipartisan issue - arguably one of the most significant developments of the 2024 election cycle. Onwards!

Hahahahaahhhh this is awesome

This is awesome 👏👏🤣

3️⃣ The deal: • Each bill moves forward separately • Speaker Johnson pledges to fold Anti-CBDC into the upcoming NDAA • President Trump signed off on the plan, breaking the impasse

2️⃣ Why the delay? Hard-line conservatives insisted on merging the Anti-CBDC ban into CLARITY. Chairs French Hill (HFSC) & GT Thompson (Ag) pushed back, warning it would sink Dem support.

I came across this article surrounding a new Ethereum Fund with staking. While promising, here are my takeaways.

My read of it (and NLA) is that it does not call for blanket bans or bank style licensing of defi. It proposes a flexible, activity-based framework: regulate the function and the presence of real control, give decentralized code room to operate via safe harbours, and modernize AML rules so they actually work on permission less rails. Hope that helps.

And congrats on the new baby - she’s beautiful!

Inauguration Day in the U.S. came and went without much mention of crypto. But the first full day of the new Administration brought a welcome development—see 🔗 link below. The SEC’s newly appointed Acting Chairman, Mark T. Uyeda, announced the formation of a crypto task force. The mission of the SEC’s new task force is to develop a comprehensive regulatory framework for crypto assets. 👉 Importantly, Commissioner @HesterPeirce will lead the task force. Commissioner Peirce was a frequent and vocal critic of the agenda that past SEC Chairman Gary Gensler had pursued to regulate crypto assets. Now, we can look for Commissioner Peirce to: ✅ Bring a common-sense approach to developing regulatory rules not driven by a heavy emphasis on enforcement actions. ✅ Coordinate closely with various federal agencies, as well as state and international bodies. The formation of this task force does not rule out a legislative solution by Congress. Indeed, we can expect the new Congress to work with the Administration’s crypto council to develop a permanent plan for regulating the crypto sector that appropriately balances the tremendous potential of crypto against the risks. Since legislation takes time to develop, however, the work of the SEC’s crypto task force will be important to provide clear and sensible rules of the road while Congress works on a long-term solution. In her new role directing the task force, Commissioner Peirce already is sending positive signals by welcoming input from a broad range of stakeholders, including investors, industry participants, and academics. Stay tuned for more announcements from the task force as it starts holding roundtable discussions and solicits public input through other channels.

The federal court presiding over the SEC v. Kraken case denied Kraken’s Motion to Dismiss last week. While this means the case will proceed forward to the discovery stage, it should not be seen as a “loss” for Kraken. These are the main points you should understand 👇 🧵

As Ireland races to implement MiCA by December 30, we're seeing some concerning contradictions in the EU's approach to blockchain technology. Let's break this down. 👇 💬 🔷 Key Points The Markets in Crypto-Assets Regulation (MiCA) institutes uniform EU market rules for crypto-assets. 👉 The EU’s directive is seeking to mitigate money laundering risks. “The latest directive will aim to impose stricter controls and transparency requirements on crypto transactions. These have been identified as potential channels for money laundering and terrorist financing.” Ireland is rushing to implement MiCA regulations by December 30, 2024, as a part of the EU-wide crypto money laundering crackdown. This coordinated effort with other EU member states will require: • Crypto firm registration/licensing • Enhanced due diligence • Customer verification • Transaction monitoring In essence, Ireland is racing to meet the EU deadline for comprehensive crypto regulations focusing on AML measures. ✅ MEV Relays One of the ways to combat money laundering and terrorist financing is through the use of MEV relays that filter out sanctioned wallet addresses–something @Figment_io uses to enhance compliance with regulatory requirements. ⚠️ The MEV Contradiction In the same breadth, the ESMA (the EU Securities & Markets Authority) published its third consultation packet outlining its proposed technical standards detailing how to implement some of the high-level rules in MiCA. In it, ESMA suggests that the use of MEV - a necessary component of the Ethereum ecosystem - may be prohibited. ––– These potentially conflicting positions by ESMA highlight the need to work with regulators to help them understand the importance of key aspects of blockchain technology and in particular, protocol staking services. Link to full article here. 🔗 99bitcoins.com/news/why-is-i…

With President-elect Donald Trump's decisive US presidential victory, the crypto markets have rallied, fueled by his campaign promises. As his administration approaches, let’s assess the potential shifts in a US crypto policy. 👇 🔍 Here’s where the US currently stands: - Unclear regulations with an enforced bias against almost all digital assets - aside from ETH and BTC - Lack of clarity on token classifications - Confusion on what protocol staking is and why it’s not a security - Falling behind other countries' advancements in digital asset innovation and regulatory frameworks 📋 During his campaign, Trump’s key crypto statements included: - Explicit support for cryptocurrency innovation - Criticism of the current SEC's regulatory approach - CBDC skepticism, favoring private sector innovation - Support for the US competing with China in the digital asset space 🔹 Here are some potential areas for policy realignment we can see in this new administration: 👉 Token Classification: A more efficient, pro-crypto government could result in clearer guidelines for distinguishing between securities and non-securities, addressing the many technological nuances in today’s digital asset landscape. 👉 Market Structure: Focusing on US competitiveness and private-sector innovation could foster improved blockchain innovation and infrastructure, with less reliance on regulation by enforcement. 👉 Innovation Framework: A clearer regulatory landscape should pave the way for protocol staking to be a part of the current ETH ETFs. We will hopefully see approvals for SOL, XRP, and other ETFs beyond Bitcoin and ETH. 💡 The Bottom Line After years of regulatory uncertainty, we're seeing signals of potential policy shifts that could provide much-needed clarity for the crypto industry. The focus appears to be moving toward fostering innovation while maintaining appropriate oversight. The key will be balancing: - Innovation alongside modest investor protection - Regulatory clarity with market stability - US competitiveness with risk management While policy changes take time, a clear direction could help the US regain its leadership in financial innovation. I look forward to the positive momentum this new administration may bring to the US crypto industry. Was there anything I left out? What are your thoughts on what areas need immediate regulatory attention? Let's discuss. 👇

Hi I wrote an article for CfC St. Moritz on regulation - maybe that’s what you’re thinking of? It’s linked below. cfc-stmoritz.com/industry-in…

Thanks - we’re on it. Stay tuned.

The appointment of Congressman @RepFrenchHill as Chairman of the House Financial Services Committee (@FinancialCmte) marks a promising development for crypto policy. Currently, Rep. French Hill leads the committee’s digital asset-focused panel and has worked to pass multiple crypto bills. With Congressman Hill at the helm of the House Financial Services Committee, several significant shifts in U.S. crypto policy could occur. Hill, known for his pro-crypto stance and balanced approach to financial innovation, is likely to drive changes aimed at fostering a regulatory environment conducive to the growth of blockchain and digital assets. Here’s what we can expect: 1. Push for Clear Legislation Hill has been a strong proponent of laws that clarify the roles of agencies like the SEC and CFTC in regulating digital assets. Under his leadership, legislative efforts such as the Financial Innovation and Technology for the 21st Century Act (FIT21), could gain traction, offering a comprehensive framework for the industry.​ 2. Pro-Stablecoin Regulation He is expected to champion bills like the Clarity for Payment Stablecoins Act, which would establish clear guidelines for fiat-backed stablecoins. These regulations could increase market confidence and attract more institutional participation to transact on blockchain-based payment rails. 3. Removal of Barriers Preventing Access to Crypto in Banking Industry Earlier this year, Hill voiced concerns about debanking in the crypto industry and said he plans to scrutinize the issue in the new year. Additionally, Hill voted to overturn the U.S. Securities and Exchange Commission's staff accounting bulletin called SAB 121. SAB 121 has drawn controversy over the past year over concerns in the crypto industry that it could prevent banks from safeguarding digital assets. 4. Collaboration with Industry Hill has emphasized the importance of engaging with stakeholders to craft policies that reflect the needs of the rapidly evolving crypto sector. This approach could reduce uncertainty and encourage investment in the U.S.​ 5. Less Aggressive Enforcement With Hill’s leadership and a possible shift at the SEC, there may be fewer enforcement actions and more focus on regulatory clarity through rulemaking, providing a more predictable environment for crypto companies. Overall, Hill’s leadership could mark a turning point for U.S. crypto policy, emphasizing clarity, innovation, and collaboration. These changes, along with all of the other anticipated changes coming with the new administration could position the U.S. as a global leader in blockchain technology and digital finance. Stay tuned.

Earlier this year, the US Attorney's Office charged two brothers for exploiting “the very integrity of the Ethereum blockchain” by manipulating the MEV process. Here’s my take on the indictment and its implications for the crypto industry.

The media’s coverage of the recent settlement between Abra and the @SECGov is yet another example of the importance of distinguishing between protocol staking and lending products. 👇 When the media lumps protocol staking and lending products together in the same discussion – without acknowledging and highlighting their extreme differences – they conflate the issue which further perpetuates the false narrative that protocol staking is the same thing as lending programs. One thing is clear… 🚫 Protocol Staking ≠ Lending. We need to be crystal clear about this distinction. 🔹 Understanding Abra Earn Abra Earn - the lending program at issue in SEC/Abra settlement, allowed U.S. investors to tender their crypto assets to Abra in exchange for Abra's promise to pay a variable interest rate. 🔑 Key point This is NOT protocol staking. It's a centralized lending program. Despite this, the article likens Abra Earn to the staking program at issue in the @coinbase lawsuit and the @krakenfx. 🔹 Difference between the Coinbase Lawsuit The Abra Earn program bears no resemblance to the “staking as a service” product at issue in the Coinbase lawsuit. Coinbase’s “staking as a service” product was built around protocol staking while Abra’s Earn product didn’t involve protocol staking at all. Instead, it was built on lending, borrowing, investing, and trading. They are completely different products with distinct legal and regulatory considerations. 🔹 Kraken’s Settlement – Nuances Matter While Kraken settled with the SEC over their "staking program," there were significant differences between their product and true protocol staking. To be sure, contrary to what the article states, Kraken did not have to halt all “on-chain” staking. They still offer protocol staking through Staked. 🔴 Bottom Line Protocol staking is not a lending product. Protocol staking is not an investment contract. Protocol staking is not a security. Accurate facts matter. Accurate description of product offerings matter. Understanding the nuances matter. As an industry, we must be vigilant in our use of language and clear in our explanations. Conflating different crypto products and services only serves to confuse regulators and the public, potentially leading to misguided regulations. True protocol staking is a fundamental part of Proof-of-Stake blockchain networks, serving a crucial role in network security and consensus. It's imperative that we don't allow it to be lumped in with lending or "earn" programs. Let's continue to educate, advocate for clarity, and push for appropriate regulations that understand the nuances of our rapidly evolving industry. Thoughts? Let's discuss. 👇

New administrations often issue executive orders to set policy direction. Reports suggest the Trump Administration is considering several potential orders. 👇 Similar to Biden’s Executive Order on Ensuring Responsible Development of Digital Assets, the Trump Administration should consider issuing an Executive Order regarding digital assets and blockchain technology promptly after the inauguration. Some practical things that the EO should include are: 1️⃣ Address the fact that the US should be a world leader in digital assets and blockchain technology but that the US is ceding authority to other countries as companies move offshore. 2️⃣ State that the policy of the US should be to promote the use of digital assets and blockchain technology in the public and private sectors and ensure US businesses can compete fairly and effectively in this industry 3️⃣ Direct all federal agencies to review regulations, orders, guidance, investigations, and litigation involving digital assets and blockchain technology to ensure they are consistent with the policy objectives. 4️⃣ Direct the SEC and CFTC to undertake a comprehensive study, with public input, and issue a public report addressing how federal securities and commodities laws apply or do not apply to digital assets and market participants and the limits of the jurisdiction of those agencies. 5️⃣ Direct the SEC and CFTC to consider and implement appropriate safe harbor rules and exemption rules to promote the development of digital asset technology. 6️⃣ Direct the IRS, OFAC, and FinCEN to review, clarify, or as appropriate revoke guidance and regulations regarding digital asset technology that those respective agencies have issued. 7️⃣ Direct the formation of a digital assets working group comprised of all relevant agencies to prepare reports, with public input, and ways to harmonize and clarify existing US laws and recommend new legislation designed to promote the use of digital asset technology. The transition period offers a unique opportunity to reset US digital asset policy. A well-crafted EO could provide immediate clarity while setting the foundation for long-term innovation. To ensure lasting impact, the order should establish a cross-agency digital assets working group tasked with harmonizing federal policy and recommending legislative updates to promote blockchain adoption. The critical moment to address digital asset policy is now.

🚨 The U.S. federal appeals court for the 5th Circuit struck down Treasury Department sanctions on @TornadoCash, a crypto-mixing service that anonymizes blockchain transactions. Specifically, the appellate court held that because Tornado Cash is an open source, immutable, and self-executing smart contract it is not "property" under sanctions law and therefore can't be sanctioned by OFAC. The holding is based on a textual analysis and starts with the dictionary definition of property. While this is a welcome ruling, it's really important to understand that this holding is quite narrow and applies only to IMMUTABLE smart contracts. The rationale behind this ruling is that the creator of an immutable smart contract does not have control and can’t change the code, and the Court held that to constitute property under sanctions law, there must be continued control. Another part of the decision is important to highlight as well. The Court did not apply judicial deference to OFAC’s interpretation of the definition of property - which was expansive and included all code. This was proper based on Loper Bright, the U.S. Supreme Court case from earlier this year that overruled Chevron deference to agency interpretation. As for implications for the crypto community in general - this looks to be part of the growing trend by courts to rein in U.S. government agencies. While a win for crypto, because this is a narrow holding it won't change sanctions exposure for all defi as there are a lot of defi smart contracts that are mutable. Additionally, to the extent that everyone is saying this is a huge win for privacy - it is to the extent that the function of Tornado Cash's smart contract is to enhance privacy for users and now people can use it freely, but remember that the holding is not about the privacy aspect of the smart contract, so it doesn't actually affect privacy beyond the limited aspect provided by Tornado Cash's code. Lastly, a similar issue is being heard in Coin Center, before the U.S. federal appeals court in the 11th Circuit - they just had an oral argument this month. It will be interesting to see how they rule on the case. The 5th Circuit and the 11th Circuit are conservative and generally adhere to textual principles of interpretation, so as this issue makes its way through other appellate courts if we see a conflicting holding, it could also go up to the Supreme Court. And of course Congress could step in to revise the law as it sees appropriate.

Here’s how we should move forward: ✅ “Protocol staking” to describe the process underlying proof of stake blockchains. ✅ “Rewards” ❌ “Yield”

A complaint for declaratory and injunctive relief has been filed against the SEC by @cryptocom, aiming to stop the SEC’s expansion of its jurisdiction over secondary market sales of network tokens. Let’s break this down. 👇

The SEC has appealed the district court's ruling in the @Ripple case, citing conflicts with Supreme Court precedent. This adds another layer to an already complex legal battle. Let's break it down. 👇 🧵

🇬🇧 The UK has announced plans to implement a crypto regulatory framework by early 2025. 💭 While, for the time being, the US continues its "regulation by enforcement" approach, let's examine what actual regulatory clarity could look like. 👇 🔍 Here are a few key elements of the UK’s approach: - A framework covering all digital assets - Clear treatment of staking services (not collective investment schemes) - Specific stablecoin regulations - Industry consultation on draft provisions - Focus on innovation AND consumer protection The Economic Secretary to the Treasury Tulip Siddiq stated: “It doesn’t make sense for staking services to have this treatment [as a 'collective investment scheme,' which would impose additional restrictions]. The government intends to proceed with removing this legal uncertainty accordingly.” 🌐 In the grand scheme of things, the global regulatory landscape is rapidly evolving—the EU is implementing the Markets in Crypto-Assets Regulation (MiCA) framework, the UK is developing clear frameworks, and other jurisdictions are providing regulatory certainty. At this time, the US continues to rely on enforcement actions and unclear guidance, pushing innovation offshore. More recently, the Financial Conduct Authority (@TheFCA) released its Crypto Roadmap for 2025 and onward. Here are some important things to note: ➡️ By Q1/Q2 2025, rules for trading platforms, intermediation, lending, and staking will be introduced (there will be a Discussion Paper around these topics). ➡️ There will be a Consultation Paper in Q4 2025/Q1 2026 on trading platforms, intermediation, staking, and lending (the outcome of the Discussion Paper will impact what is included in the Consultation Paper). ➡️ In 2026, the regime is expected to go live with comprehensive rules in place. While the UK addresses these issues on this roadmap, these are areas where US companies face the most regulatory uncertainty and, where ultimately, regulatory support falls short of supporting innovation in a burgeoning industry. 👉 The Bottom Line This announcement from the UK is following a pattern we’re all too familiar with. While other nations craft clear, frameworks that balance innovation and oversight, the US falls further behind. We're watching in real-time as other jurisdictions create the regulatory clarity our industry desperately needs. The solution isn't complicated - we need: → Clear regulatory frameworks. → Proper rulemaking procedures. → Industry consultation. → Recognition of technological distinctions. As I mentioned in a previous post: We're seeing signals of potential policy shifts that could provide much-needed clarity for the crypto industry. However for now, how many more countries need to pass us by before we take action? I look forward to hearing your thoughts on how this might influence US competitiveness. 👇

Yesterday, the SEC once again cracked its crypto whip when it filed a lawsuit against Cumberland. Let's examine the lawsuit against @CumberlandSays and its significance to the industry. 👇

🟨 Conclusion 🟨 The DOJ’s explicit stance on the legitimacy of MEV and its necessity for Ethereum’s Proof-of-Stake consensus mechanism is a positive signal for the U.S. crypto industry, especially for protocol staking.

This news highlights the importance of the U.S. understanding how all crypto tokens fit into the blockchain ecosystem – not just #Ethereum and #Bitcoin. 👇🧵

Last week, 18 states pushed back against the SEC's "regulation by enforcement" approach and gained significant coverage. Here are the specifics and why it matters. 👇 🔍 18 states and the DeFi Education Fund (@fund_defi) filed suit against Gary Gensler and the SEC in Kentucky, alleging: - Unauthorized expansion of the SEC’s jurisdiction. - Violation of state’s regulatory authority. - Improper enforcement of the SEC’s unwritten "crypto policy." This lawsuit parallels @cryptocom's recent case against the SEC. Both lawsuits focus on the SEC’s “crypto policy” of treating secondary transactions of digital assets uniformly as “investment contracts” in violation of the APA. The critical difference here is that this case is being brought by the states themselves. The states allege they have been harmed because their authority over digital assets has been preempted. 🏛️ This challenge adds significant fuel to the crypto community’s arguments that: The SEC has created a de facto rule that virtually all digital asset sales are securities. The SEC implemented this unwritten "rule" without following proper APA procedures. In particular, the SEC has improperly classified secondary market transactions as investment contracts. 👉 The Bottom Line This lawsuit could force what the industry has long needed: ✅ Proper rulemaking procedures. ✅ Clear guidelines. ✅ Respect for state regulatory authority. The SEC cannot continue to expand its jurisdiction through enforcement actions while bypassing the APA. We're seeing a growing consensus: the SEC’s current approach is legally questionable and harmful to innovation and proper market development. Thoughts on how this might reshape the regulatory landscape? 👇

Thanks!! Very much appreciated.

→ As an industry, we should make the effort to be accurate and consistent with our words.

→ Also, we must collectively stop referring to rewards as “yield.” Yield is a specific financial term to describe a specific type of investment return. It's inaccurate/harmful to protocol staking to describe rewards as yield. We must guide accurate conversations about staking.

🚨 The Supreme Court's rejection of Binance's petition for Writ of Certiorari sends a clear message about the reach of U.S. securities laws in the crypto space. This isn't just another legal development - it's a decisive moment that reinforces what many of us have been saying about jurisdictional reach in digital asset markets. 📄 For context—In Morrison v. National Australia Bank Ltd., 561 U.S. 247, 267 (2010), the Supreme Court rejected the Second Circuit’s multifactor “conduct and effects” test for determining the international reach of U.S. securities laws and instead held that those laws apply only to “transactions in securities listed on domestic exchanges, and domestic transactions in other securities.” While Morrison attempted to limit the extraterritorial application of U.S. securities laws, the court’s rejection has effectively created a new framework that acknowledges the unique nature of digital asset transactions. In Binance v. Anderson, the Second Circuit analyzed whether alleged transactions on a foreign website were domestic using a multifactor test including (but not limited to) whether: (1) the lawsuit implicates the “comity concerns that animated Morrison” (2) the investors interacted with the foreign website from internet connections in the U.S. (3) third-party computer servers hosting the foreign website were alleged to be located in the U.S. In applying this test, the Second Circuit reasoned that irrevocable liability can attach to a transaction at multiple times and places, including in multiple countries. Essentially, U.S.-based AWS servers or having U.S. users accessing your platform can be enough to establish jurisdiction. After the Second Circuit’s ruling, Binance filed a petition for Cert on the issue of whether the Second Circuit’s multifactor test is consistent with Morrison or is instead an improper revival of the “conduct and effects” test. While the Supreme Court didn’t provide any comment (per usual) in denying Binance’s petition for cert, their denial reinforces how broad extraterritorial reach is under the irrevocable liability test. 👉 Bottom line Regardless of the “test” employed, in reality, if a nexus to the U.S. exists and a court wants to find jurisdiction - it can and it will, at least in the Second Circuit.. This isn't about the specific test being applied - it's about the courts' willingness and inclination to adapt traditional frameworks to capture digital asset activity. As the industry continues to mature, we need to think seriously about what this means for international crypto operations and compliance strategies.

🔗 Read here about SEC Acting Chairman Mark T. Uyeda announcing the formation of a new crypto task force. sec.gov/newsroom/press-relea…

Quick Update: Binance vs SEC Case. Here are the recent developments in the Binance case. 🔍 A lot of noise will pop up from time to time on lawsuit updates, especially those regarding lawsuits in crypto. Here's what happened. 👇

Your ETH is used to strengthen the network’s security, and in return, you earn protocol rewards.

Takeaway 1 🔹 This piece reinforces that other jurisdictions, including Japan are allowing issuers to incorporate staking into their ETFs – something the U.S. should do to keep up with other global jurisdictions and because true protocol staking is not a security.

As this is an ongoing dialogue, I would like to hear your comments on my takeaways.

To this point, I’ve noticed that staking has been used to describe a lot of activities that are not actually protocol staking. That’s why I think it’s important to consistently use the term “protocol staking” to describe the process underlying proof of stake blockchains.

If the SEC and other regulatory bodies understand the blockchain ecosystem, they can make swift, correct, and efficient decisions when faced with new crypto product offerings – like a #Solana ETF. We shouldn’t be following other countries. We should be thought leaders. The devil is always in the details. They matter here more than ever.

Yesterday, @CFTC Commissioner Summer K. Mersinger issued a thoughtful and persuasive dissent regarding the agency’s $175K settlement with @Uniswap. 🧵 👇

Takeaway 3 🔹 Furthermore, protocol staking does not involve “lending” your ETH to a validator. When someone uses their ETH to set up a validator for protocol staking on ethereum, you own that validator, not the node operator, and your ETH remains in your custody and control.

For example, this article describes protocol staking as “pooling funds to earn returns,” which is not correct. Rewards are not “returns” and ETH protocol staking - that node operators like Figment provide - does not involve pooling funds.

In addition, the DOJ’s indictment implicitly signals that protocol staking is not violative of U.S. laws. Any alternative reading can’t be squared with the department's decision to use protocol staking as the basis for a fraud prosecution.

While the U.S. should recognize what Ethereum staking is not (that being a security), we should better define what Ethereum staking is, and be clear and uniform about the language we use when discussing protocol staking.

2️⃣ The court clarified the SEC was not alleging that the crypto assets themselves were securities or investment contracts. Specifically, the court said it did not “understand the SEC to be alleging that the individual cryptocurrency tokens in which Kraken enables transactions are themselves securities.” While this means the SEC could at any time allege that these tokens are securities, this is still positive because according to the Court, the SEC is not currently doing so, and the SEC isn't arguing with that interpretation.

Takeaway 2 🔹 I’ve also noticed that the press, the financial industry, and even some in the crypto space are using inaccurate and misleading words to describe true protocol staking, which further propagates the inaccurate narrative that protocol staking is a security.

Looking forward to being there!

The @SECGov filed a proposed amended complaint against @binance, placing heavier scrutiny on the exchange's token listing and trading process. As always, the devil is in the details. Let's break it down. 👇

1️⃣ To clarify, it’s important to understand that the court did not rule as a matter of law that the tokens at issue in the case are not securities. That was not the issue before the court.

Therefore, the Court allowing the case to move to discovery really doesn’t tell us much of anything. The Judge says as much by noting that it remains to be seen whether the SEC can actually prove the tokens were offered and sold as investment contracts. Additional information can be found here. storage.courtlistener.com/re…

The US Attorney's Office charged two brothers with conspiracy to commit wire fraud, wire fraud, and money laundering for exploiting “the very integrity of the Ethereum blockchain” to obtain approximately $25 million in ill-gotten gains.

Figment allows its customers to stake with the comfort of knowing that Figment is always thinking about these issues. Connect with me or follow to stay informed.

It’s important to keep in mind that the burden to get past a motion to dismiss is extremely low. The court must take all allegations in the complaint as true and view them in the light most favorable to the SEC.

It’s important to remember though that there are still components of using MEV that trigger other regulatory/legal considerations. Therefore, it’s crucial to choose a node operator – like Figment – that understands these risks and values compliance.

3️⃣ The court found the SEC alleged enough to meet its burden at the MTD stage focusing on how the tokens were bought, sold, and traded on Kraken’s platform. This differs from the @binance case where the court found the SEC did not allege enough to include secondary sales in the complaint. The different treatment of these cases is why the judge you draw is important – until there is legal precedent, each judge gets to decide what is enough and it’s extremely subjective.

In contrast, the DOJ’s position that MEV is legitimate and germane to the Ethereum ecosystem is a refreshing embrace of protocol staking in the U.S. → This position demonstrates an understanding of protocol staking we have not previously seen.