CEO @crypto_council. Formerly @Gemini, @KrakenFX, & @WillkieFarr. Tweets are not legal or financial advice. Views mine.
New York, NY
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It's unfortunate that the WH issued the below Statement of Administration Policy indicating that the President would veto H.J. Res 109, the resolution to nullify SAB 121.
SAB 121 would require custodians to record customers' digital assets as liabilities on their balances sheets. This has the practical effect of making it extremely prohibitive for responsible custodians to hold digital assets. Among other effects, it would result in onerous capital requirements against such assets.
(Not to mention that the SEC issued SAB 121 without adhering to the proper CRA/APA process.)
It is imperative that custody rules in the US properly protect consumers and investors in a way that allows our industry to grow.
SAB 121 should have been subjected to public feedback and regulatory scrutiny before implementation. The SEC’s attempt to bypass established rulemaking processes under the guise of issuing 'staff-level guidance' undermines trust and due diligence expected in regulatory practices.
whitehouse.gov/wp-content/up…
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🙌 to @Gemini for this comprehensive and thoughtful 2024 Crypto Trend Report. 🙏 for including my perspective on 2024 regulatory outlook. Looking forward to continued growth for our industry in 2024!
geminiexchange.app.link/e/Bq…
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1/ Today, the House of Representatives voted 228-182 to repeal the SEC’s Staff Accounting Bulletin 121 (SAB 121) under the Congressional Review Act.
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1/ The @crypto_council just submitted an amicus brief in support of @coinbase challenging the SEC’s denial of its rulemaking petition.
TL;DR: The SEC’s pursuit of its flawed interpretation of securities laws through regulation by enforcement while refusing to engage in rulemaking is a violation of the Administrative Procedure Act (APA) and has caused and will continue to cause significant harm to American businesses in the new, digital age.
cryptoforinnovation.org/cci-…
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Treasury & IRS released proposed rulemaking on tax treatment regarding sales and exchanges of digital assets by "brokers." While it is encouraging to see that participants validating transactions through mining or staking are exempt from tax rules, the proposed definition of “broker” appears to still be overly broad and potentially captures a lot of participants who have no practical way to comply.
Digital assets reflect an asset class and technology inherently different from more traditional assets, and it is critical that the rules and regulations embody that as well. @crypto_council looks forward to continued engagement and responding to this important rulemaking (public comments are due 10/30/23).
home.treasury.gov/news/press…
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1/ Initial thoughts to Judge Failla’s Order RE: @coinbase's Mtn for Judgment on the Pleadings:
First, what happened? The court denied most of the motion (i.e., decided that SEC’s case against CB will move fwd on most of the alleged claims) but agreed that CB is entitled to dismissal of the claim that it was an unregistered broker via its Wallet product. The court highlighted that CB (i) has no control over a user’s crypto or transactions with the Wallet, (ii) does not undertake routing activities, and (iii) only provides the technical infrastructure.
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1/ The @crypto_council filed an amicus brief requesting the U.S. Supreme Court to review a lower court’s ruling ("grant cert") in Binance v. Anderson.
TL;DR: The Second Circuit improperly considered the location of internet infrastructure (third-party AWS servers) as a factor in determining that transactions were within the scope of U.S. securities laws.
If jurisdiction can be based on server location, it impermissibly expands U.S. jurisdiction to potentially anywhere in the world. This would seriously impair American businesses and put Americans at risk of being sued in foreign countries for merely using the internet abroad. 🧵
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Eight attorneys general of Montana, Arkansas, Iowa, Mississippi, Nebraska, Ohio, South Dakota, and Texas "opposes the SEC's regulation of crypto assets absent an investment contract because Congress HAS NOT delegated this authority to the SEC."
"The SEC's enforcement action EXCEEDS its delegated powers."
🔥@MTAGKnudsen @AGTimGriffin @TXAG @AGIowa
@LynnFitchforMS @NEAttorneyGen @OhioAG @SDAttorneyGen
Eight state AGs in US challenge SEC's authority in Kraken lawsuit with joint amicus brief theblock.co/post/280031/eigh…
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1/ I can't stop reading Judge Bibas' concurrence, which is a must-read. He articulates many of the concerns and arguments that CCI and industry have raised about this SEC.
Judge Bibas, one of the most respected judges on the Third Circuit, wrote separately to highlight that the SEC's "old regulations fit poorly with this new technology, and [the SEC's] enforcement strategy raises constitutional notice concerns."
🧵 w/ a few other great quotes from Judge Bibas:
We further appreciate Judge Bibas' concurrence, in which he speaks forcefully about the looming constitutional concerns "with ex post enforcement without announcing ex ante rules or guidance." It's an impressive piece of work. 2/3
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The AGGRESSIVE and INNOVATION CHILLING regulation by enforcement approach of this SEC continues--this must STOP.
@dfinzer is absolutely right--NFTs are fundamentally creative goods, which allow artists, creatives, and others to showcase their talent. NFTs should not be regulated in the same way as CDOs.
The SEC's assertion that NFT platforms should be regulated as securities exchange is not only legally flawed but utterly ridiculous.
@crypto_council stands in support of our member, @opensea, and creators everywhere. If anything, we look forward to the continued growth of NFTs.
OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities.
We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight.
Cryptocurrencies have long been in the crosshairs of the SEC, and companies like @coinbase, @Uniswap, @RobinhoodApp, @krakenfx, and @Consensys have been fighting against the SEC's single-track approach of "regulation by enforcement."
But this is a move into uncharted territory. By targeting NFTs, the SEC would stifle innovation on an even broader scale: hundreds of thousands of online artists and creatives are at risk, and many do not have the resources to defend themselves.
NFTs are fundamentally creative goods: art, collectibles, video game items, domain names, event tickets, and more.
We should not regulate digital art in the same way we regulate collateralized debt obligations.
As we've built OpenSea, we've heard so many stories about the impact of NFTs on people’s lives, including:
• Student artists finding full-time careers in selling their digital art
• Indie game developers instantly enabling open markets for their in-game items, without having to build marketplaces from scratch
• Passionate collectors from different corners of the world joining new communities, all centered around shared digital ownership
It would be a terrible outcome if creators stopped making digital art because of regulatory saber-rattling. Take, for example, the suit filed against the SEC by the musician @songadaymann and conceptual artist @brianlfrye, which describes their fear that the sale of their art and music could be deemed unregistered securities offerings.
In addition to standing our own ground, we're pledging $5M to help cover legal fees for NFT creators and devs that receive a Wells notice. Every creator, big or small, should be able to innovate without fear.
I hope the SEC will come to its senses sooner rather than later, and that they'll listen with an open mind.
Until then, we'll stand up and fight for our industry.
Onwards 🌊⛵️
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1/ The SEC filed a pre-mtn letter seeking interlocutory appeal in Ripple as to J. Torres’ holdings that programmatic sales in blind/bid ask transactions and distributions of XRP to employees are not securities under Howey. Simply put, SEC is asserting J. Torres got it wrong.
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The SEC's baseless regulation by enforcement approach unfortunately continues. The below reflects that the Commission fails to understand that the Uniswap Protocol, wallet, web app, etc do NOT meet the legal definitions of securities exchange or broker.
Our industry is one that has been asking for thoughtful sensible regulation, but this is NOT it.
1/ Today’s Wells notice against @Uniswap is disappointing, but is not unexpected from this SEC
It’s another abuse of power – unsurprising from an SEC that:
Last month, a federal judge ruled committed a "gross abuse of power" by lying in court about a crypto project
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1/ ETH ETFs approved! Today's approval underscores that the SEC never had any legal basis to deny these ETFs and marks another win for market participants, the digital assets industry, U.S. innovation and the rule of law.
sec.gov/files/tm/lk87adfs99.…
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1/ The SEC voted today 3-2 (Cmmsrs Peirce and Uyeda dissenting) to adopt rules to redefine and expand what it means to be a securities “dealer.” The expanded and vague definition broadly sweeps in more entities trading any crypto assets that the SEC deems to be securities, without properly considering or taking feedback on how such an interpretation will impact markets and market participants.
sec.gov/news/press-release/2…
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I want to congratulate @Sheila_Warren on an incredible tenure as inaugural CEO at @crypto_council, where she tirelessly worked to establish this organization and advocate passionately for our industry; she did this thanks to her intelligence, integrity, and vision. I am grateful to be able to call Sheila a friend and appreciate her friendship and leadership, and look forward to continuing to work w/ her at CCI in her role as senior global policy advisor; I also wish her the best in her next endeavor.
As our industry knows, our work is far from done: I am looking forward to building on CCI’s strong foundation and working with our incredible team to inform policy and regulatory frameworks that will help our industry maximize its impact, empower individuals, and shape the future of finance and how we live our digital lives. Our industry is facing a critical and promising time, and CCI, in partnership with our amazing members, is ready to do its part to shape successful outcomes with the States and the New Congress and Administration in the U.S., while continuing our important work in other leading jurisdictions, including the UK, EU, and Asia-Pacific.
It is not lost on me that it is a privilege to work with this CCI team and also represent and advocate for CCI members and our industry. One of the best things about our community is that I am always learning from others, and I look forward to that continuing as I step into this role. 🙏🚀
I am filled with mixed emotions as I share that I will be stepping down as the inaugural CEO of @crypto_council in January. The incomparable @_JiKim will be stepping into a new role as President and Acting CEO of CCI, and I will provide support as Senior Global Policy Advisor. Excited to share more details about what I’m up to next in January…stay tuned!
When I took on the role as CCI’s first CEO three years ago, it was a different era—before the FTX debacle and just as Gary Gensler’s attacks on the industry were beginning to unfold. I’m incredibly proud of the organization and team we’ve built from the ground up during such turbulent times, and of CCI’s achievements across multiple regions. It’s been demanding work in a tough environment, but policymakers around the world have consistently told me that CCI is the reason they’ve remained open-minded about crypto, even amidst a bear market, crises, and negative press about the industry. I’m excited to see Ji carry forward CCI’s legacy of deep expertise, sophistication, and global perspective in his new role. I cannot think of a better person to build on this strong foundation he has helped create, and I am excited to support him in 2025.
Team CCI is hardworking, dedicated, and passionate, and under Ji's continued leadership, I am confident that CCI will achieve a smart regulatory outcome in Washington, just as we have successfully done in nearly every other market where we operate.
It is an ongoing privilege to speak on behalf of this technology, which I deeply believe is not just exciting but essential. My next chapter will focus on driving innovation and impact on an even greater scale. So this isn’t goodbye—it's just the beginning of a new adventure. 🚀
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1/ I reviewed the below amicus brief suggesting that the major questions doctrine should not apply in the SEC v. @coinbase matter and respectfully would like to offer a few reactions, including on my areas of disagreement (no surprise) w/ the authors.
Today, @beau_baumann and I filed an amicus brief in the @SECGov v. @coinbase case, with the great help of lawyers at @DemocracyFwd. We argue that the SEC's enforcement action does not trigger the major questions doctrine. 1/
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Honored to be invited to @whitehouse to see GENIUS become law. Years of work in the making from so many people. Crypto Week delivered. Golden age for digital assets is just beginning.
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The SEC just filed its opposition to @coinbase's mtn for judgment on the pleadings.
The SEC is wrong again. They make the sweepingly broad assertion that any investment w/ an expectation of profit is a security (e.g., page 8).
As mentioned (see below tweet), if we apply that flawed logic to real life, that would mean that if I purchase a basketball card and hope to turn a profit based on Upper Deck's efforts, that would turn my purchase into a securities transaction regulated by the SEC. (And, yes, @kobebryant is still the 🐐.)
We need smart, sensible legislation to provide the clarity that the digital asset industry needs to best protect consumers while allowing for responsible innovation (FIT21).
nitter.app/_jikim/status/16900514…
The @SECgov just filed its opposition to our motion to dismiss their case against @Coinbase. It’s more of the same old same old. But don’t just take my word for it – take a look for yourself. 1/7 assets.ctfassets.net/c5bd0wq…
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1/ There’s been a lot of commentary regarding J. Rakoff’s opinion in Terra, but there is nothing in there that contradicts J. Torres’ ruling in Ripple that the investment contract is the security, NOT the underlying crypto asset.
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Thrilled to welcome @galaxyhq as the newest member of @crypto_council! Excited to partner on advancing sensible, forward-looking crypto policy worldwide. Grateful to work alongside @novogratz, Andrew Siegel, Natalia Li, @intangiblecoins & the incredible Galaxy team.
CCI welcomes @galaxyhq, a global leader in digital assets and AI infrastructure. It's an important time in crypto policy and we are excited to have your expertise at the table with us.
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The SEC's continued regulation by enforcement approach needs to stop. 🙏 to @amandatums, @millercwl, the @fund_defi team, and @BebaCollection for suing to hold the SEC accountable. 🔥🔥🔥
The complaint has two claims: (1) a declaratory judgment action seeking a ct. order that Beba's free airdrop of its token is not a securities transaction and $BEBA tokens themselves are not investment contracts (i.e., the tokens were given away for free, so there was no "investment of $" by recipients) and (2) an APA claim to hold the SEC to meet the actual reqt's of APA and challenging the unlawful adoption of the SEC's baseless "nearly all digital assets are securities" policy without any formal rulemaking process.
Read more 👇:
Today, we @fund_defi sued the SEC. It has everything to do with airdrops + stopping the SEC’s regulation by enforcement crusade against our industry. 🧵
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Congratulations to team @coinbase for winning its petition for writ at the Third Circuit.
Even the Third Circuit said the SEC's rationale was "conclusory and insufficiently reasoned, and thus arbitrary and capricious. . ." Not the first time unfortunately!
@crypto_council was proud to file an amicus in support of Coinbase's petition. From CCI's amicus:
"The SEC’s failure to engage in this process is arbitrary and capricious. The SEC summarily denied Coinbase’s rulemaking petition in a two-page letter that merely asserted that the SEC “disagrees” with Coinbase’s representation that the existing regime is "unworkable.”
Without SEC guidance, industry participants must “try to figure out whether they have to register as dealers and, if so, which assets they can handle in the registered entity. To do so, they need to understand whether the assets for which they provide liquidity are securities.” Yet the SEC has denied them access to a coherent framework to measure their actions and has thus not met the APA’s basic promise “of fair notice and equal treatment inherent to the rule of law.”
We just won our petition for a writ of mandamus at the Third Circuit. Rebuking @SECGov for its order denying our rulemaking petition, the Court held that the "SEC’s order was conclusory and insufficiently reasoned, and thus arbitrary and capricious, we grant Coinbase’s petition in part and remand to the SEC for a more complete explanation." We appreciate the Court's careful consideration. 1/3
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1/ The @crypto_council, in partnership with @BlockchainAssn, @ProgressChamber, and @CTATech, filed an amicus brief in support of @coinbase's mtn for judgment on the pleadings in the @SECGov action. A fun Friday 🧵 below:
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1/ As the digital asset industry has learned, "personnel is policy" and leadership of regulatory agencies matters. Tomorrow, the Senate Banking Committee will consider several nominations. 🧵
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Proud to partner with the @BlockchainAssn in support of @BebaCollection and @fund_defi to stop the aggressive regulation by enforcement and legally flawed approaches of this SEC, which continues to put US leadership and innovation at risk when it comes to digital assets.
The SEC has taken the legally flawed view that an airdrop can somehow constitute an investment contract and is therefore a security. This is inconsistent with both common sense and legal precedent (including in Howey). The Supreme Court meant what it said by “investment of money,” and the SEC cannot just choose to ignore that.
We respectfully request the Court to consider our arguments and deny the SEC’s Motion to Dismiss.
Many thanks to team BA (@MTCoppel and @LauraCSanders), team MoCo (@ohaiom), @pnpkirby, and CCI members for the partnership on this brief.
1/ The @crypto_council & @BlockchainAssn are stepping up to support Beba & @fund_defi challenging the SEC.
Today, we filed a joint amicus brief to argue that airdropped tokens are not “investment contracts” and don’t qualify as security offerings.
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Congratulations to @BrianQuintenz for his nomination to serve as the next Chairman of the @CFTC by @POTUS. As I previously said, Brian's nomination is fantastic news for our country, digital assets, and the future of America's markets. Brian has been a leader in promoting pro-market innovation both during his previous tenure as CFTC Commissioner, where he sponsored the Technology Advisory Committee (TAC), and in his current role at @a16z. Nobody better understands the transformative potential of digital asset technology, and how sound and clear regulation can foster growth. It's an exciting day for the country and the future of innovation.
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Grateful to team @coinbase for leading the charge and pushing back against a legally flawed regulation by enforcement approach.
Also grateful to this new SEC Administration, which is focused on ending the previous reg by enforcement and providing reg clarity.
We still need comprehensive legislation which will stand the test of time to provide clear rules of the road. This will best ensure that responsible innovation flourishes in the U.S.
When @iampaulgrewal brought me to work on this case, I knew the stakes were high and the outcome was binary. Not all legal teams get to fight such a consequential battle. Even fewer get to win one. Grateful for the incredible work of @coinbase’s litigation army and that @brian_armstrong, @emiliemc, @iampaulgrewal – and the whole company – get to celebrate being on the right side of history. A new chapter in crypto begins today.
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🚨 An updated draft 1099-DA form just posted on the IRS website, which reflects the final broker regs issued in June. As a refresher, this is the form that “brokers” will start using in 2025 to report digital asset transactions to customers.
irs.gov/pub/irs-dft/f1099da-…
Initial review reflects that this draft form removed, among other things, wallet addresses, transaction IDs, and time acquired. These are important changes.
Why? The previous draft form required wallet addresses and transaction IDs be reported for each transaction. Privacy of wallet address info is a HUGE concern for both customers and taxpayers trusted with this info. Also raises significant risk of interception of such info by parties other than the gov’t and the customers. While @crypto_council is still reviewing the updated form, these appear to be welcome changes that CCI and industry advocated for.
Same goes for removal of "time acquired." The previous draft form required both the date and time assets were required for reporting purposes. Including time info down to the second for each transaction would significantly increase burden for IRS and the taxpayer, resulting in confusion. The updated form now requires just the "date acquired."
A formal news release from Treasury/IRS is likely forthcoming and there will be another opportunity to provide comments. It is critical that we, as an industry, continue to advocate for precise clarity re info reporting obligations, which reflect the unique nature of digital assets.
More to come...
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1/ To ensure U.S. leadership over digital assets innovation, it remains critical that Americans continue to have access to DeFi services. To that end, it is important to repeal the IRS’s December Broker Reporting Rule. CCI strongly encourages members of Congress to vote in favor of @SenTedCruz’s and @RepMikeCarey’s CRA.
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The selection of @BrianQuintenz for @CFTC Chair would be remarkably good news for our country, digital assets, and the future of America's markets. Brian is an extremely thoughtful, informed, substantive, and steadfast leader who shows integrity and a pro-innovation and growth mindset. 🔥🚀
Who Will Be Trump’s CFTC Chair? There’s a New Top Contender for the Role
If cryptocurrencies are declared commodities, the CFTC could have a lot of influence over the industry.
by @vronirwin (link below)
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The CFTC will play a pivotal role in ushering in a golden age of digital assets in America. Brian Quintenz’s extensive experience and deep understanding of digital assets + financial markets make him uniquely qualified to lead the CFTC. He is a person of the highest integrity with a clear, forward-looking vision--he recognizes blockchain as a “horizontal technology with the potential to touch every aspect of society.”
He is the right person at the right time to ensure that the U.S. continues to lead.
Today, the leading groups representing the broader digital assets industry jointly issued the following letter of support for the nomination of Mr. Brian Quintenz as Chairman of the CFTC.
@crypto_council @BlockchainAssn @TheDRC_ @Fund_defi @DigitalChamber @SatoshiActFund @SolanaInstitute
Read below
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The WH states that it will not support measures that jeopardize the well-being of investors and consumers but SAB121 does exactly that by making it impossible for banks and responsible custodians to safeguard crypto. You should want such institutions to properly custody/safeguard customers’ assets.
Yes, glad that this Administration has expressed support for the “responsible development of digital assets,” but vetoing the repeal of SAB121 (which bypassed proper rulemaking processes) actually fails to promote such development, innovation, and consumer protection.
Disappointed but not surprised by the veto of SAB121 CRA- as I often say, silence is golden, because some positions once publicly stated wind up being tough to walk back.
This is a mistake and will actually undermine the very safety the administration seeks.
Interesting to see language at the end that seems more in line with 2022.
whitehouse.gov/briefing-room…
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1/ The SEC’s regulation by enforcement approach to digital innovation poses a huge RISK to creativity, expression, and economic dynamism—the Wells Notice issued to @opensea is a clear escalation.
Here’s a 🧵 re the context and implications of the SEC’s actions, which will harm artists, creators, our economy, and anyone who dares to think big and creatively.
The AGGRESSIVE and INNOVATION CHILLING regulation by enforcement approach of this SEC continues--this must STOP.
@dfinzer is absolutely right--NFTs are fundamentally creative goods, which allow artists, creatives, and others to showcase their talent. NFTs should not be regulated in the same way as CDOs.
The SEC's assertion that NFT platforms should be regulated as securities exchange is not only legally flawed but utterly ridiculous.
@crypto_council stands in support of our member, @opensea, and creators everywhere. If anything, we look forward to the continued growth of NFTs.
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2/ We applaud @USRepMikeFlood, @RepWileyNickel, and @SenLummis for their leadership on this important issue to help promote a more transparent process for making rules that significantly impact the U.S. financial system.
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It is beyond unfortunate that the SEC has attempted to regulate the digital assets industry through a regulation by enforcement approach without providing any needed guidance or clarity. As @crypto_council and I have previously stated, this is why it is so critical for Congress, which is the proper institution (not the SEC), to provide this needed clarity through sensible and comprehensive legislation.
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4/ As SEC Commissioner @HesterPeirce said, SAB 121 is “yet another manifestation of the Securities and Exchange Commission’s scattershot and inefficient approach to crypto.”
sec.gov/news/statement/peirc…
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As previously stated, we are concerned with the renomination of Commissioner Caroline Crenshaw, who to date has demonstrated biased animosity to the digital asset space -- whether it was dissenting from the SEC approving a BTC ETF, which was legally required and only helps bring such products into the regulatory perimeter, or perpetuating unfounded beliefs on supposed illicit use of digital assets, Commissioner Crenshaw has unfortunately not demonstrated the objective judgment required of agency leaders. I respectfully submit that the SBC should not move forward with this nomination this Wednesday.
nitter.app/_jikim/status/18110728…
🚨NEW: The Senate Banking Committee will meet next Wednesday to vote on the re-nomination of Democrat @SECGov Commissioner Caroline Crenshaw. If the Senate votes her through, she’ll be able to serve on the commission until 2029.
If she’s not confirmed, Trump will be able to nominate someone else.
During her time on the commission, Crenshaw has been an ally to @GaryGensler and a supporter of his policies, pushing for more stringent climate reporting mandates. She also voted against the approval of the $BTC spot ETFs.
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1/ We have a pivotal moment with the Senate’s cloture vote for the GENIUS Act today. This is a defining moment, not only for the digital assets industry, but for our country to continue to lead when it comes to the future of finance and digital infrastructure
The Senate is taking a critical step to further cement U.S. leadership in global digital finance. CCI expresses our strong support to bring the GENIUS Act to the floor for debate this week. The time is now. Below statement is attributable to @_jikim 👇
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The below reflects a tremendous outcome when it comes to bankruptcies in the U.S. Kudos to @cameron @tyler and the entire @Gemini team for all the work, negotiations, and behind the scenes commitment to ensure that Earn users receive the below outcome.
At the core of the U.S. bankruptcy process is the hope that a court-led process will allow creditors, customers, and others affected to receive some amount or value of recovery. That said, it rarely works out this way. Against this backdrop, it is remarkable to see that Earn users will receive $2.18 BN of their digital assets in kind (as part of initial distributions, reflecting 97% of digital assets owed). What will not be as prominently mentioned is how team Gemini never wavered and worked around the clock to ensure this type of outcome.
Among other things, Gemini took up various roles in the bankruptcy that are typically handled by outside firms (e.g., providing notices, distributing plan voting materials, filing POCs on behalf of Earn users, allowing for seamless distributions directly into Gemini account, and so much more), to ensure that Earn users were able to recover as much as possible (versus having to pay the expenses of these outside firms, which would have only reduced the pool of funds/recoveries for Earn users). In addition, Gemini contributed $50 MN to the recovery, which reflect this company's commitment to its users.
I recognize that any bankruptcy process is arduous, lengthy, and extremely difficult on so many levels for those affected, but glad the result was a positive outcome. 🙏
Today, Earn users received $2.18 billion of their digital assets in kind. These initial distributions represent:
• 97% of digital assets owed to Earn users
• $1 billion more than when Genesis halted withdrawals
• A 232% recovery from when Genesis halted withdrawals
This represents an unprecedented recovery among crypto bankruptcies, as well as bankruptcies in general, and follows our previous announcement that we reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy, which will result in all Earn users receiving 100% of their digital assets back in kind.
This means, for example, that if you had lent one bitcoin in the Earn program, you will receive one bitcoin back. And it means that you will receive any and all appreciation of your assets since you lent them into the Earn program.
In order to ensure this successful resolution, Gemini has also contributed $50 million to the Earn users’ recovery.
We recognize the hardship caused by this lengthy process and appreciate your continued support and patience throughout.
Finally, it’s important to note that the Genesis bankruptcy was not a crypto problem. It was old-fashioned financial fraud compounded by a lack of regulatory clarity. To that end, we will continue to fight for clear rules and guidance for our industry that foster both innovation and consumer protection. And we will win this fight. The future is bright.
Full announcement here → gemini.com/blog/gemini-earn-…
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This is extremely well-deserved. Allison Behuniak has done so much already to advance thoughtful digital asset policy. Looking forward to digital assets continuing to be a key priority for the @FinancialCmte.
Inbox: Incoming House Financial Services Chair French Hill (R-Ark.) taps Allison Behuniak to be the panel's policy director. Behuniak was previously staff director for HFSC's digital asset subcommittee.
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🔥 🔥🔥
Wyoming passed a new law yesterday to recognize DAOs as legal entities, which will enable blockchain networks to operate w/i the bounds of applicable laws without compromising their decentralization. Law goes into effect 7/1/24.
Why is this so significant? Among other things, this will provide DAOs with needed protections while empowering them to keep blockchain networks open.
Need more details? Check out the substantive post from @milesjennings below + the helpful blog from @a16zcrypto unpacking what this all means. 🙌
@crypto_council and I strongly believe it is critical to safeguard decentralization and allow for DAOs to continue to grow. We also 🫡 WY's continued efforts and leadership on all this.
🚨Big News🚨Wyoming just enacted a game-changing law for web3.
It creates a new entity for DAOs – the Decentralized Unincorporated Nonprofit Association (DUNA) – that’s been years in the making.
@CowrieLLC and I provide everything you need to know below:
a16zcrypto.com/posts/article…
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Today’s partial verdict against Roman Storm is troubling and unfortunate. Non-custodial, P2P software is not money transmission. This outcome endangers innovation and puts developers at serious risk. The fight isn't over--an appeal to the Second Circuit awaits. Regulatory clarity is also needed to clarify the definition of a money transmitter in the BSA (as rec'd in the PWG Report on Digital Assets).
A jury issued a partial verdict in Roman Storm’s case convicting him on conspiracy to operate an unlicensed money transmission business (while not reaching a verdict for the counts on conspiracy to launder money and violate sanctions).
An appeal is necessary. This case underscores many things, including why we need regulatory clarity, not criminal enforcement after the fact when there was no control over funds.
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5/ I’ll end with my favorite part of J. Torres’ ruling: “XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract.” 🔥
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3/ SAB 121 marks a major policy shift in how banks and other entities custody assets, requiring responsible custodians who hold digital assets for their clients to keep those assets ON their balance sheets and subjecting them to enormous associated capital requirements.
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Commissioner @HesterPeirce's comments at SEC Speaks are a worthwhile read. 👇
sec.gov/news/speech/peirce-r…
She comments on the "dwindling of genuine Commission and staff engagement with the public" and how "[t]he Commission -- not the staff or market participants -- is to blame." She spotlights this is reflected in the way the rules are made: very broad proposals, unreasonably short public comment periods. . . and little SEC engagement in implementation discussions."
Commissioner Peirce also provides suggestions to reignite conversations with the public--this includes, among others, an advisory committee of CCOs who can shed invaluable insight on how the rules actually operate and encouragement of staff to use its expertise to work through difficult regulatory issues, including assessment of how blocking new technologies could harm investors.
The first Chair of the SEC promised that "[i]f a business does the right thing, it will be protected and given a chance to live, make profits and grow. . . [T]he [SEC] promises nothing less." Unfortunately when it comes to digital assets, this current SEC has failed in that promise. As Commissioner Peirce highlights, public private engagement is critical to the growth of innovation, policy, and investor protection. I hope the Commission takes serious consideration of her remarks and great suggestions.
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GENIUS. CLARITY. Momentum.
The time is now. 🇺🇸
Comprehensive stablecoin and market structure legislation are critical to further cement U.S. leadership.
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6/ The SEC argued that SAB 121 does not meet the APA definition of a rule because it is not an “agency statement” of “future effect.” The Government Accountability Office (GAO) disagreed, and clarified that SAB 121 qualifies as a rule under the APA because of its substantive nature, contradicting the SEC’s portrayal of it as non-binding guidance.
gao.gov/products/b-334540
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Thrilled to welcome George (@CapHillCrypto) to @crypto_council. I've always respected his passion, legal/policy acumen, and integrity. (I'm less crazy about his love for the Celtics, but look fwd to turning him into a @nyknicks fan.)
Excited to have George join the team during a pivotal time for our industry!
Gm. Final newsletter is out! Thank you @AMangiero for breaking down key staking policy issues in the Q&A linked below.
Thank you to everyone who’s been a part of the Cap Hill Crypto journey.
And thank you to @_jikim for the opportunity to begin a new chapter with the Crypto Council for Innovation. Couldn’t be more excited to join the exceptional @crypto_council team to help advance thoughtful, forward-looking policies that promote innovation and expand opportunities for all!
But first—time for a quick paternity break to welcome our sweet twin girls 👼👼🙏🙏
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5/ Alarmingly, the SEC issued SAB 121 without adhering to the notice-and-comment rulemaking process. The Administrative Procedure Act (APA) defines a rule as “the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency.”
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It is critical that regulators and gov't employees are able to use, interact with, and hold crypto to truly understand how this technology works and how to properly regulate it. "It's time to remove the regulatory blindfold and allow the U.S. to lead..."
Below is a must read from Sigal Mandelker (@RibbitCapital; former Acting Deputy Sec of U.S. Treasury & Under Secretary for Terrorism & Financial Intelligence):
openbanker.beehiiv.com/p/lif…
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Extremely positive news/update for Earn users 👇. If the settlement is finalized and approved by the BK Court, Earn users will receive 100% of its digital assets IN KIND and any and all appreciation since assets were lent. AND Gemini is contributing $40 million to Earn users' recovery as well.
@GeminiTrustCo, as agent, has been advocating vigorously for Earn users. In addition to below, Gemini has played many roles in this BK incl. providing notice, relevant information, distributing chapter 11 plan voting materials, etc. To be clear, this is not always the norm in a BK proceeding. 🙌💪🙏 to the Gemini team.
Earn Update: Today, we are pleased to announce that we have finally reached a settlement in principle with Genesis and other creditors in the Genesis Bankruptcy that will, if approved by the Bankruptcy Court, result in all Earn users receiving 100% of their digital assets back in kind.
This means, for example, that if you had lent one bitcoin in the Earn program, you will receive one bitcoin back as part of this settlement. And it means that you will receive any and all appreciation of your assets since you lent them into the Earn program. If approved, we will be returning over $1.8 billion in value (at today’s prices) — $700 million more than when Genesis halted withdrawals on November 16, 2022.
Looking forward, if the Bankruptcy Court approves the settlement in principle announced today, Earn users can expect to receive approximately 97% of their assets in kind within about two months. And they can expect to receive their remaining asset balance within the next 12 months.
The settlement in principle is subject to definitive documentation. The required Bankruptcy Court process could take as long as two months to complete, and we will keep Earn users informed along the way. Gemini thanks the New York Department of Financial Services (DFS) for its role in this settlement, which delivers a coin-for-coin recovery for Earn users.
Read our full update at gemini.com/earn
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Excited to welcome @PayPal as the newest member to @crypto_council! Their global leadership in digital payments strengthens our mission to advance blockchain technology, digital assets, and responsible innovation. On a more personal note, I have known and respected the amazing team at PayPal, and all of us at CCI are thrilled about this partnership. 🚀
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🧵1/ Crypto Week delivered. From the White House to the Hill, it was a watershed moment. It was great to see our industry come together. Moments like these remind me what a privilege it is to represent CCI members and the industry. CCI is grateful to have been part of all this, and we’re taking a moment to reflect.
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2/ Second, it is impt to keep the procedural context in mind. This, again, was a “motion for judgment on the pleadings,” which means that the court is required to assume that all plead facts are true in order to see if the SEC “plausibly” stated a claim against CB–this only determines whether the case will continue to discovery as a next step. This does not mean that the SEC’s facts or remaining claims will win out. In fact, as @iampaulgrewal points out 👇, early motions like these against a regulator are almost always denied, but this was a needed first step (AND CB got a claim dismissed).
nitter.app/iampaulgrewal/status/1…
Early motions like ours against a government agency are almost always denied. But clarity is the ultimate goal and today’s decision continues us on that path. 2/6
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12/ CCI strongly supports this bipartisan and bicameral effort to correct the SEC’s approach towards digital assets. It is essential to uphold the integrity of regulatory processes and support the growth of all sectors within the U.S. financial system.
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9/ We again applaud Congress for stepping in to address the SEC’s continued approach of sidestepping the rulemaking process, which only creates uncertainty and confusion in the marketplace.
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Here are the facts: the SEC previously stated that it had at most limited authority over digital assets just to CHANGE course under this Chairman to pursue an aggressive regulation by enforcement approach w/o providing needed clarity despite the industry's repeated asks--such an approach has inflicted great harm to our industry. To say that this is UNFORTUNATE is an understatement--you actually have an industry looking to work in good faith and constructively w/ policymakers and regulators to ensure that the US remains the leader in responsible innovation.
@coinbase filed a petition for rulemaking to seek such clarity, which the SEC failed to respond to. CB subsequently filed its writ of mandamus to compel the SEC to respond. After much delay and only after the Third Circuit asked for a status update did the SEC finally respond by denying the petition for rulemaking in a two-page letter simply stating that it "disagrees" the existing regime is "unworkable." The denial was devoid of ANY meaningful detail or reasoning. As detailed further 👇, such a denial is a violation of the APA.
Today @coinbase filed our opening brief in the Third Circuit challenging the SEC’s denial of our rulemaking petition. Tl;dr: the SEC’s denial is arbitrary and capricious, an abuse of discretion, and a violation of the Administrative Procedures Act. 1/7 assets.ctfassets.net/c5bd0wq…
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8/ At a time when the digital assets industry needs clarity, this rule delivers further confusion. And this despite the industry repeatedly seeking to engage constructively and in good faith with the SEC through comments and dialogue. Our system of government requires better.
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As the Senate votes on OBBB—aimed at lowering taxes and restoring tax policy certainty—CCI urges inclusion of a comprehensive digital asset tax framework. Among other things, a de minimis exemption, mark to market, language providing for proper taxation of staking/mining rewards & that staking does not give rise to UBTI are essential for clarity and to reduce unnecessary tax reporting burden. Such tax policy will further ensure U.S. leadership over digital assets. 🇺🇸
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Another major milestone: the release of the Presidential Working Group Report on Digital Assets marks a whole-of-government push to ensure the U.S. leads in the golden age of crypto.
From DeFi, tokenization, market structure, CIF, tax, and much more—the report covers it all. We now have a clear regulatory guide to ensure continued growth.
Grateful to @POTUS, @davidsacks47, @BoHines47, @SecScottBessent, @SECPaulSAtkins, the entire PWG, and their teams for their commitment and leadership.
1/ Today’s White House report is clear: crypto is a pillar of America’s innovation strategy. It advances clear, thoughtful approaches to decentralization, tax, market structure, & GENIUS implementation. Grateful to @realDonaldTrump @BoHines @davidsacks47 for their leadership.
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🚨 The Fed withdrew outdated guidance that singled out banks for crypto activities. No more unnecessary hurdles, just standard supervision. Another step twds treating crypto like any other part of the financial system and supporting innovation.
@federalreserve announces the withdrawal of guidance for banks related to their crypto-asset and dollar token activities and related changes to its expectations for these activities: federalreserve.gov/newsevent…
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12/ As a general matter, judges and cts may come out w/ diff conclusions depending on the underlying facts. This is even more reason for Congress to act on legislation to bring clarity. The HFSC and HouseAg advancing the MS bill was a big first step in this regard.
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7/ Traditionally, staff accounting bulletins are not designed to enact sweeping policy changes; they are meant to clarify existing rules. SAB 121, however, acts as a new rule, impacting core aspects of the financial and digital asset industries.
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Gary Gensler to depart SEC on 1/20.
Instead of encouraging growth, capital formation, healthy US markets, and protecting customers and investors, he leaves with a failed legacy which has only harmed US innovation as he undertook a legally flawed regulation by enforcement approach.
sec.gov/newsroom/press-relea…
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Thrilled to welcome @Paxos as CCI’s newest member. I’ve long admired their leadership in building trusted infrastructure and advocating for smart policy. Excited to deepen our partnership at this pivotal moment for digital assets.
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10/ The broad consensus is clear: using SAB 121 as a vehicle to set precedent for digital asset custodians is inappropriate and misleading. This is not how critical financial regulations should be established.
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8/ As I've previously stated, SAB 121 should have been subjected to public feedback and regulatory scrutiny before implementation. The SEC’s attempt to bypass established rulemaking processes under the guise of issuing 'staff-level guidance' undermines trust and due diligence expected in regulatory practices.
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Today’s bipartisan Senate passage of GENIUS affirms U.S. leadership in ushering in the golden age of digital assets—advancing stablecoin adoption, consumer protection, dollar dominance, and responsible innovation. Truly a defining moment for our industry and country.
The Senate voted YES for GENIUS - a historic step for the digital asset industry. We thank @LeaderJohnThune @SenatorTimScott @SenatorHagerty @SenLummis @SenGillibrand & bipartisan members for this clear framework for stablecoin innovation. America is moving forward.
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6/ Lastly, while I disagree w/ the Judge on several parts of the Order, I do want to 🙏 her for her careful consideration. Footnote 1 in the Order reflects the clear fact that she really thought through and listened to arguments from all sides (including from amici) and spend considerable time to further understand the underlying tech.
I look forward to next steps on all this, including CB taking needed discovery from SEC in this case.
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1/ Yesterday, @crypto_council filed our comment letter to the proposed broker reporting regulations. While CCI appreciated the opportunity to provide recommendations, there are many aspects of the proposed regs that do not take into account the unique nature of digital assets.
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While the crypto tax provisions didn’t make it into OBBB, CCI is grateful to @SenLummis @MikeCrapo, @LeaderJohnThune, @SenatorTimScott & staff for their leadership. Clear rules on staking, mining, de minimis, mark-to-market, & more are vital. CCI will continue to work w/ lawmakers to get tax policy right.
🚨Today the Senate votes on Big Beautiful Bill. @SenLummis has an amendment that would unlock huge growth for US crypto (de minimis, staking/mining tax timing, mark to market etc)
Call Sen Finance Chair @MikeCrapo 202 224-6142 & @LeaderJohnThune 202-224-2321 w/ your support!
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It’s been remarkable to see real progress on digital assets—GENIUS signed into law, CLARITY passed the House, and continued momentum on market structure. The CFTC will be central to digital commodity oversight. @BrianQuintenz brings the expertise, integrity, and pro-innovation mindset needed, and will be invaluable in helping to shape regulatory policy at this critical time. CCI respectfully urges the Senate to confirm him as Chair.
1/ CCI strongly supports @SenateAgGOP and @SenateAgDems scheduled consideration of Brian Quintenz to serve as Chairman of the CFTC. His nomination comes at a critical crossroads where the right leadership atop US market regulators is more important than ever.
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11/ With the disapproval resolution, Congress is taking a stand to ensure that such significant changes go through the proper public rulemaking process. This is vital for maintaining a competitive and innovative financial landscape.
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Big news! Grayscale wins--SEC is ordered to review its rejection of Grayscale's attempt to convert its Trust into an ETF.
Will need to thoroughly review the relevant docs/details, but few initial questions/thoughts as we assess this: what are the exact next (mechanical) steps (e.g., what does the potential conversion process look like and related timing? does the SEC basically reconsider the petition for review and if so, what does that look like? does Grayscale have to resubmit its documents)?
With all that said, this is big positive news. The Court has determined that the SEC's assessment process on this was arbitrary and capricious.
🚨BREAKING: A DC Court of Appeals has GRANTED Grayscale’s petition for review to convert its GBTC Trust into a Bitcoin Spot ETF and has ordered the @SECGov’s order be vacated. Documents and detail to come.
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Thank you @BoHines. Very grateful for your leadership and all that you did. Congratulations on what is next. 🙏
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1/ Thoughtful and helpful thread from @AlexanderGrieve.
Few add'l thoughts:
It goes without saying that ANYONE who funds or aids terrorism should be stopped and brought to justice–END OF SENTENCE.
‼️@SenWarren, @RepCasten, & @RogerMarshallMD lead letter with 28 Senators and 76 House members to Treasury & NSC on Hamas use of crypto, asking what additional authorities the admin might need (hint: their bill) to crack down on this activity. (NB: only 2 Rs on it)
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3/ Next, I respectfully disagree w/ several parts of the Order (snippet of my disagreements below).
The court seems to disagree that there needs to be a contractual undertaking for an investment contract to exist–I disagree. It seems to adopt the SEC’s common ecosystem argument (“. . .courts are not to consider the [crypto] in isolation. Instead, courts evaluate. . .the “full set of contracts, expectations, and understandings” surrounding its sale and distribution.”). This thinking could sweep in any physical product whose value is somehow tied to a broader community. In fact, the Judge herself raised the example of baseball cards (products that go up or down in value based on efforts of the athlete and broader ecosystem of collectors) during oral argument, which I do agree with. I also disagree with her conclusion that "there is little logic to the distinction" when assessing reasonable expectations of investors who buy from issuer v secondary market.
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This regulation by enforcement approach by the previous SEC should never have happened. What is overlooked is how crushing this has been to responsible companies looking to innovate and build in the U.S. It is critical that this does not occur again.
Grateful to the new SEC for moving swiftly to close baseless investigations/enforcement actions. Also grateful to @cameron @tyler @JackBaughman27 and all of team @Gemini for acting with conviction and principle to push back against this.
On Monday, the SEC informed our litigation counsel @JackBaughman27 that it has closed its investigation into @Gemini and will not be pursuing an enforcement action against us. This comes 699 days after the start of their investigation and 277 days after they sent us a Wells Notice.
While this marks another milestone to the end of the war on crypto, which already includes the SEC’s withdrawal of the Coinbase lawsuit and the closing of investigations into OpenSea, Robinhood, and UniSwap, it does little to make up for the damage this agency has done to us, our industry, and America.
The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation. Of course Gemini is not alone. The SEC’s behavior in aggregate towards other crypto companies and projects cost orders of magnitude more and caused unquantifiable loss in economic growth for America.
How many engineers left crypto or avoided it altogether because of these regulatory attacks? How many projects were never started or got off the ground because founders and engineers decided they would rather build a startup in their dorm room than inside the boardroom of a law firm trying to navigate the Kafkaesque crypto regulatory hellscape? How many engineers chose to go into other industries instead of building a permissionless, open financial system? How many years of innovation were kicked down the road at the expense of Americans? We will never know.
So where do we go from here? It’s wholly unacceptable for an agency like the SEC to bully, harass, and attack a lawful industry and then decide one day to simply say we’re good and walk away. Unless there is a cost and price to be paid for this behavior, it will happen again. Thoughtful legislation will form a shield of protection, but we also need strong deterrence inside the agencies themselves. Here are a few ideas:
Reimbursement
If an agency refuses to write rules before it opens an investigation or brings an enforcement action, the agency should have to reimburse you for 3x your legal costs. This would make you financially whole for the time and money you spent defending yourself against sham investigations and baseless enforcement actions that were only able to be brought because the agency didn’t write rules in the first place. Even better, they should be required to advance you your legal costs so you don’t have to come out of pocket while you defend yourself.
Dishonorable Discharge
Everyone involved in these actions should be fired immediately and in a public way. Their names, roles, and the actions they participated in should be posted on the SEC website.
How many SEC enforcement lawyers have resigned in protest since the SEC top brass instructed them to withdraw crypto cases and close investigations? Zero. Which means they never believed in these cases to begin with. Which begs the question, why didn’t these lawyers resign at the outset when they were told to bring these unjust cases?
It should not be acceptable to bring the full might of the US government to bear against fledgling companies in a nascent industry and then hide behind a faceless agency or say you were “just doing your job” or “following orders.” These individuals had a choice. They could have asked to be reassigned or resigned. Nobody was forcing them to work at the SEC. Nonetheless, they chose to violate their oath and the agency’s mission to “make a positive impact on the U.S. economy, our capital markets, and people’s lives” and instead aided and abetted an unlawful war against a lawful industry.
Imagine if even one SEC enforcement lawyer had resigned in protest and stood up for our industry — what a heroic act this would have been. But it never happened.
Agency Ban
Just like the SEC bars individuals from trading securities if they break the law, there should be a process that bars those like Gary Gensler who weaponize the law, as well those who participate in the weaponization, from ever being appointed to or hired by an agency again. Lifetime ban in this case.
Going Forward
We will not rebuild trust and integrity in federal agencies unless there are serious consequences for bad faith actors. Operation Chokepoint didn’t stop at 1.0. It continued to 2.0 because not enough was done to hold bureaucrats accountable for their actions during 1.0. And there will be a 3.0 unless there is a real, public reckoning for 2.0.
I’m glad to be turning the page here as an industry, but this is not the end, rather the beginning towards ensuring this never happens again to the crypto industry or any other exciting, new frontier industry in the future. Here’s to continuing to reform our government and fighting the good fight. Amazing awaits
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Thrilled to welcome @SoFi to the @crypto_council membership. A visionary firm with deep conviction about digital assets and smart policy.
Grateful for the privilege to partner with a team I've long respected--excited for the work ahead.
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President Trump selects Paul Atkins to be the next SEC Chair! This is a strong, forward-leaning pick, and @crypto_council looks forward to a new SEC administration focused on promoting responsible innovation, establishing clear rules and guidelines, and putting a complete end to legally flawed regulation by enforcement approach, which has severely harmed investors, consumers, and US's leadership when it comes to digital assets.
Trump has chosen Paul Atkins as chair of the SEC trib.al/bf1VCNX
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7/ Commissioner Mark Uyeda similarly raised concerns in his dissent:
“Today’s action codifies the Commission’s view that the “dealer” definition is practically limitless. The public should be concerned about the immense scope of this claimed jurisdiction." 🔥💪
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5/ As stated before, judges and cts. may come to different conclusions--this is even more reason why we need Congress to act on needed legislation to bring clarity. Congress is the proper institution to advance a comprehensive framework for our industry.
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The IRS released a draft Form 1099-DA for reporting "Digital Asset Proceeds from Broker Transactions":
irs.gov/pub/irs-dft/f1099da-…
As a refresher, this is the form that "brokers" will start using in 2025 to report digital asset transactions to customers. This is a draft form (there is an opportunity for public comments) and the actual regulations are not yet final. We will need to see what the final regs actually say about who is a broker, timing for reporting, and other critical details. That said, the draft form provides somewhat of a preview, so here are a few initial thoughts:
- unfortunate to see "unhosted wallet providers" being listed as "brokers" (this fails to recognize, among other things, that a wallet provider, as a software tech provider, does not have knowledge of the nature of transactions processed, nor the identity of the parties to transaction)
- (it is critical that the actual final regs take into account the unique nature of digital assets and our industry, esp to the extent that they impose obligations on individuals, tech, or entities that practically cannot comply with tax reporting obligations--not b/c they do not want to, but b/c they do not have, and in many cases, cannot get, the requisite info to do so)
- the draft form appears similar to "Form 1099-B" used for reporting sales of traditional financial products
- looks like this draft form also requires wallet addresses and transaction hashes to be provided where relevant
More to come...
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6/ Lastly, at the risk of sounding like a broken record, even more reason why it is important for Congress to act to provide needed clarity.
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It was remarkable and historic to see the @POTUS convene a Digital Assets Summit to discuss the future of our industry and reaffirm the need for U.S. leadership. Digital assets are critical to economic growth, national security, and U.S. leadership. Thank you to the President, Crypto & AI Czar @davidsacks47, Exec Director @BoHines, and this Administration for their leadership in advancing this important discussion.
(On a more personal note, it was inspiring to see several CCI members (incl. Board members) and industry leaders—whom I deeply respect—represent our industry today. It was particularly meaningful to witness participation from leaders of three firms where I have had the privilege of working, further reinforcing the shared commitment to shaping a responsible and innovative digital asset ecosystem in the U.S.)
In addition, we saw the OCC take action today to reaffirm what we know—that digital asset activities are permissible in the federal banking system.
occ.gov/news-issuances/news-…
@crypto_council looks forward to continuing to work with this Administration and Congress to ensure that the U.S. establishes comprehensive digital assets legislation—that will stand the test of time and ensure a golden age of digital assets in the U.S.
"Last year, I promised to make America the Bitcoin superpower of the world and the crypto capital of the planet and we're taking historic action to deliver on that promise…” - President Donald J. Trump
Crypto 🤝 Making America Great Again
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3/ To this end, we are concerned with the renomination of Commissioner Caroline Crenshaw, who to date has demonstrated biased animosity to the digital asset space -- whether it was dissenting from the SEC approving a BTC ETF, which was legally required and only helps bring such products into the regulatory perimeter, or perpetuating unfounded beliefs on supposed illicit use of digital assets, Commissioner Crenshaw has unfortunately not demonstrated the objective judgment required of agency leaders.
@katiebiber articulates this concern extremely well:
nitter.app/katiebiber/status/1810…
1/ Why is anti-crypto SEC Commissioner Caroline Crenshaw poised for re-confirmation without even a peep from the Senate?
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Congratulations to @SenLummis. She has long been a champion for our industry and the need for a comprehensive framework to ensure that this innovation thrives in the U.S., and @crypto_council looks forward to her leadership as Chair of the Senate Banking Subcommittee on Digital Assets. 🔥
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8/ Read our brief 👇. Special🙏 to the fantastic team at MoCo (@ohaiom and Michael Mix), @pnpkirby, and CCI members for the partnership on this Supreme Court brief.
media.cryptoforinnovation.or…
CCI respectfully urges the Supreme Court to step in now to prevent further harm to American industries and uphold the integrity of global internet and blockchain networks.
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Establishing a comprehensive regulatory framework for the US digital asset markets is critical now more than ever. Thank you to @RepFrenchHill, @CongressmanGT, other bipartisan members, and their staff for leading on this and for today's important markup in both the HFSC and House Ag Committees.
Today, @FinancialCmte and @HouseAgGOP are marking up our CLARITY Act, which gives us the market framework that will make America the leader in crypto development and distributed ledger financial services.
More ⬇️📺 @MorningsMaria
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FIT21, understanding the importance of digital assets, taking active steps to curb regulator efforts to impermissibly (w/ no valid legal reason!) restrict bank access to our industry, calling out this SEC's legally flawed reg by enforcement, and the list goes on.....there is only one @PatrickMcHenry. Thank you (and your amazing staff) for the exceptional leadership on the @FinancialCmte.
CCI shares our deepest appreciation for @PatrickMcHenry’s leadership as the Chairman of the House Financial Services Committee during the 118th Congress.
Under his leadership, the Committee advanced key policies on digital assets, strengthened US leadership, curbed overreach by regulators, and empowered Americans financially.
bit.ly/3ZidoTL
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Congratulations to CFTC Cmmsr Summer Mersinger for her new role as CEO of @BlockchainAssn. Important work lies ahead, and @crypto_council and I look forward to continuing our partnership in support of our industry.
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We, as an industry, have always looked to engage constructively and in good faith with regulators and policymakers around the world. We will also go on the offensive to properly and vigorously represent, defend, and advocate.
Unfortunately the finalized Dealer Rule, among other things, broadly sweeps in more entities trading any crypto assets that this SEC arbitrarily may deem to be securities, without properly considering or taking feedback on how such a vague and grossly expansive definition will harm responsible innovation, impact markets, and market participants. The finalized Rule also fails to acknowledge and address the unique fundamental differences of crypto assets and DeFi.
🙏 to @MTCoppel and our friends at the BA and CFAT.
1/ Today, @BlockchainAssn and the Crypto Freedom Alliance of Texas sued the SEC over the recently finalized Dealer Rule. The rule is arbitrary and capricious, and presents significant risk for digital asset market participants in the U.S.
tinyurl.com/ye6h3zet
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🙏 appreciation to the dedicated Hill staffers who joined @crypto_council's briefing on the FIT for the 21st Century Act and the current regulatory landscape. FIT21 provides for a clear process for market participants and regulators to follow to best protect investors while allowing for responsible innovation in the US.
Grateful to @JBSDC, @Collin_McCune, @AshleyEGunn1, and Jacob Hample (@FilFoundation) for sharing their insights and perspectives today. 🔥
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With the NY legislative session underway, @crypto_council appreciated the opportunity to meet w/ key policymakers to discuss the ongoing impact and transformative potential for digital assets in NY. CCI continues to advocate for the development of modern, coherent, and fit-for-purpose policy frameworks that foster responsible innovation and best protect consumers.
CCI looks forward to continued engagement in NY this session. Thank you to Assemblymembers @PamelaHunter128 , @clydevanel, and @AlexBores for their continued leadership. 🙏 (Special 🙌 to my fantastic colleague, @Peter__Herzog, for his partnership!)
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11/ Lastly, J. Rakoff’s decision is ofc not binding on other district court judges. Imo his discussion on the secondary market should be read in the context of the specific asset and transactions in this case, rather than as a general rule.
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This was a historical moment, which reflects the true bipartisan nature of digital assets. Thank you to all those who voted in favor to advance the GENIUS Act, including @SenatorWarner, @SenatorAndyKim, @SenRubenGallego, @SenatorLBR , and again @Sen_Alsobrooks.
The Senate Banking Committee passes the GENIUS Act out of committee after a robust amendment process this morning by a vote of 18 to 6!
Thank you again to @SenatorHagerty, @gillibrandny, @SenLummis, @Sen_Alsobrooks for their leadership on the GENIUS Act, and thank you also to @SenatorTimScott for his leadership during today’s mark up and vote.
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2/ These adopted rules require market participants who provide significant liquidity to the markets (and have $50 mill or more in assets) to comply with federal securities laws (e.g., registering as a dealer), including when transacting in crypto securities (which the SEC continues to fail to define).
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BIG day for our industry and for bipartisanship. US Senate voted 60-38 to overturn SAB 121, which was issued without following a proper CRA or APA process. True bipartisan effort in both the House and Senate to push back against SEC's overreach and flawed process.
What happens next? Well, the President has indicated that he would veto the resolution to nullify SAB 121.
He has 10 days (excluding Sundays) to sign the resolution into law, allow this to become law without signature (i.e., doesn't sign or veto), or veto. If the President vetoes, Congress could try to override the veto. A two-thirds majority of those voting in both houses of Congress is required to override a President's veto.
SAB 121 was the SEC's attempt to bypass established rulemaking processes and make it prohibitively difficult for bank and responsible custodians to safeguard digital assets, which only undermines trust in our regulatory system. We will see how the President responds to this bipartisan effort and outcome from Congress to repeal SAB 121.
1/ Today, 60 Senators on both sides of the aisle - including Majority Leader @SenSchumer - voted to repeal the SEC’s Staff Accounting Bulletin 121 (SAB 121) under the Congressional Review Act.
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8/ While it is likely the SEC will appeal this decision, this is a big, big win for the industry. Thanks to the @Ripple team for all their efforts.
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