The Senate confirmed the nomination of Lael Brainard to a four-year term as Vice Chair of the Federal Reserve.
Congressman Patrick McHenry (R-NC), Ranking Member of the House Financial Services Committee, said Congress should set up a new system of digital asset regulation outside the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the two U.S. financial market regulators, which he said were ill-equipped for the task. “I fundamentally think the Securities and Exchange Commission and the CFTC lack that capacity to well regulate this new innovation,” he said at an event hosted by Punchbowl News.
The Consumer Financial Protection Bureau (CFPB) announced that it is invoking a largely unused legal provision to examine nonbank financial companies that pose risks to consumers. The CFPB believes that utilizing this dormant authority will help protect consumers and level the playing field between banks and nonbanks. The CFPB is also seeking public comments on a procedural rule to make this process more transparent. For more information, see our memo.
Congressman Glenn “GT” Thompson (R-PA), Ranking Member of the House Agriculture Committee, introduced with his co-sponsors Congressional Blockchain Caucus co-Chairs Rep. Tom Emmer (R-MN) and Rep. Darren Soto (D-FL), and Blockchain Caucus member Rep. Ro Khanna (D-CA) H.R. 7614: the Digital Commodity Exchange Act of 2022 (DCEA). The legislation provides regulatory oversight for exchanges, market intermediaries, and stablecoin providers.
The New York Assembly passed a limited moratorium on new or renewed permits for cryptocurrency mining operations powered by fossil fuel plants, the first of its kind in the nation. The measure, A7389, faced intense opposition from the cryptocurrency industry which warned it would chill additional investment in the state. IBEW unions whose workers are employed at cryptocurrency mining operations also oppose the bill, which now heads to the Senate where a similar version passed last year.
The Senate Banking Committee and the House Financial Services Committee held hybrid hearings with Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra on the agency’s Semi-Annual Report to Congress. A summary of the hearings can be found here.
Acting Comptroller of the Currency Michael Hsu spoke on crypto policy on an Alliance for Innovative Regulation (AIR) podcast. Acting Comptroller Hsu discussed what the goals of crypto policy should be, and how crypto is similar and different from earlier kinds of innovation. He said he views stablecoin as the foundation layer of the whole crypto system, and it should therefore be regulated wisely.
The New York State Department of Financial Services (DFS) issued new guidance to New York State-regulated virtual currency entities regarding the use of blockchain analytics tools as a best practice to prevent and manage financial risks and suspicious activities.
Senators Elizabeth Warren (D-MA) and Robert Menendez (D-NJ) sent a letter to Albert Ko, Zelle operator Early Warning’s chief executive, asking what steps it had taken to protect consumers from the proliferation of sophisticated scams. The senators said reports of rising fraud were “disturbing” and criticized Early Warning and its owners for creating a “confusing and unfair” situation for consumers who are scammed.
European Central Bank Executive Board Member Fabio Panetta called for new global standards to regulate crypto assets and also suggested they should be taxed more. Panetta said that crypto-assets were harmful to society and without social or economic value.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated entities and individuals involved in attempts to evade sanctions imposed by the United States and its international partners on Russia. OFAC designated Russian commercial bank Transkapitalbank and a global network of more than 40 individuals and entities led by U.S.-designated Russian oligarch Konstantin Malofeyev, including organizations whose primary mission is to facilitate sanctions evasion for Russian entities. OFAC also designated companies operating in Russia’s virtual currency mining industry, reportedly the third largest in the world. This is the first time the Treasury has designated a virtual currency mining company.
If you would like to receive real-time updates on sanctions, email email@example.com to be included in our sanctions email distribution list. See our previous updates here.
Wednesday, May 4, 2022 at 2:30pm EST: The U.S. Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection will hold a hearing entitled “Examining Overdraft Fees and Their Effects on Working Families.”
Thursday, May 5, 2022 at 10:00AM EST: The U.S. Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing entitled “Examining Student Loan Servicers and Their Impact on Workers.”
Tuesday, May 24, 2022: DC Blockchain Summit
Are you interested in policy discussions on blockchain, digital assets and cryptocurrencies? Join the Chamber of Digital Commerce on May 24th, 2022, as we work together to advance the adoption of blockchain technology in Washington, DC, and beyond.
The Summit is a one-day, premiere gathering of the most influential people focused on public policy action for digital asset and blockchain innovations. Immerse yourself in this exclusive experience featuring top regulators, government officials and industry executives.
Some of Our Speakers Include:
- Hester Peirce, Commissioner, U.S. SEC
- U.S. Sen. Cynthia Lummis, Wyoming
- U.S. Sen. Cory Booker, New Jersey
- U.S. Sen. Steve Daines, Montana
- U.S. Rep. Tom Emmer, Co-Chair, Congressional Blockchain Caucus
- U.S. Rep. Darren Soto, Co-Chair, Congressional Blockchain Caucus
- Michael Saylor, Chairman & CEO, MicroStrategy
- Kevin O’Leary, Chairman, O’Leary Ventures
- And Many More!
- NFTs, DeFi &, Web 3.0 – The Next Wave In Adoption
- Mission Critical: Crypto Tax & Accounting
- Stablecoins & The Future of Money
- The Truth About Cryptocurrencies & Russian Sanctions
- Reshaping The Energy Sector: How Bitcoin Mining Will Lead The Energy Transition
- Token Jurisdiction: Deep Dive Into SEC & CFTC Oversight