Two more crypto bills in the US: Law Decoded, July 17–24
Last week was marked by two new legislative initiatives for the crypto industry in the United States. Senator Jack Reed sponsored a bipartisan bill that would tighten Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations and sanctions requirements for decentralized finance (DeFi). The bill would subject DeFi operations to the same requirements as “other financial companies, including centralized crypto trading platforms, casinos, and even pawn shops.”
Two major crypto lobbying groups slammed the legislation: Coin Center and the Blockchain Association. The former released separate statements describing the legislation as a “messy,” “unworkable” and “unconstitutional” way of regulating DeFi. Kristin Smith, the CEO of the Blockchain Association, echoed Coin Center’s concerns and described the new legislation as redundant. Smith said federal law enforcement agencies already have the tools and expertise to combat this “relatively small but important issue.”
Republican House Agriculture and House Financial Services Committee members introduced the Financial Innovation and Technology for the 21st Century Act. The bill gives the Commodity Futures Trading Commission (CFTC) jurisdiction over digital commodities, clarifies the authority of the Securities and Exchange Commission (SEC), and creates a process for digital assets deemed initially securities to be sold as commodities. Representatives French Hill and Dusty Johnson, who are among the bill’s cosponsors, sent a letter to SEC Chair Gary Gensler a day before the bill’s introduction criticizing the agency’s so-called “regulation by enforcement” of the crypto industry.
Spot Bitcoin exchange-traded fund (ETF) applications from several firms have been published in the
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