- Top Lines
The United States took significant and unprecedented action to respond to Russia’s further invasion of Ukraine by imposing severe economic costs that will have both immediate and long-term effects on the Russian economy and financial system. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed expansive economic measures, in partnership with allies and partners, that target the core infrastructure of the Russian financial system — including all of Russia’s largest financial institutions and the ability of state-owned and private entities to raise capital — and further bars Russia from the global financial system. The actions also target nearly 80 percent of all banking assets in Russia and will have a deep and long-lasting effect on the Russian economy and financial system. We have developed a list serv to provide updates on these sanctions and related matters. To be included in the email distribution list, please email us at publicpolicyteam@fsvector.com.
The Federal Reserve has barred senior officials from a number of investment activities, particularly those involving individual stocks, bonds, cryptocurrencies and commodities. Notably, officials can still hold existing stocks, while crypto seems to be completely off-limits. There are exceptions for commodities and foreign currencies “owned for non investment purposes” but no such carve-out for crypto.
Federal Reserve Governor Lael Brainard spoke about central bank digital currencies (CBDCs). She stated that “a U.S. CBDC may be one potential way to ensure that people around the world who use the dollar can continue to rely on the strength and safety of US currency to transact and conduct business in the digital financial system.”
Canada’s federal government put 34 cryptocurrency wallet addresses on a list tied to the trucker “Freedom Convoy,” warning crypto exchanges and financial firms not to facilitate transactions with them as part of sanctions. The list consists of 29 Bitcoin wallet addresses, one Ethereum wallet address, one Cardano wallet address, one Ethereum Classic wallet address, one Litecoin wallet address and one Monero wallet address, according to the order.
- Weekly Wrap Up
Canada’s federal government put 34 cryptocurrency wallet addresses on a list tied to the trucker “Freedom Convoy,” warning crypto exchanges and financial firms not to facilitate transactions with them as part of sanctions. The list consists of 29 Bitcoin wallet addresses, one Ethereum wallet address, one Cardano wallet address, one Ethereum Classic wallet address, one Litecoin wallet address and one Monero wallet address, according to the order.
The U.S. Department of Justice (DOJ) announced the selection and appointment of Eun Young Choi as the new leader of the National Cryptocurrency Enforcement Team (NCET). Previously, Choi served as senior counsel to Deputy Attorney General Lisa Monaco, who has served as a public-facing official for the DOJ’s crypto efforts. “The NCET will play a pivotal role in ensuring that as the technology surrounding digital assets grows and evolves, the department in turn accelerates and expands its efforts to combat their illicit abuse by criminals of all kinds. I am excited to lead the NCET’s incredible and talented team of attorneys, and to get to work on this important priority for the department. I would like to thank Assistant Attorney General Polite and the Criminal Division’s leadership for this opportunity,” Choi said in a statement.
California State Senator Sydney Kamlager (D-Los Angeles) introduced new legislation to allow the use of cryptocurrencies to pay for government services. CA SB 1275 (21R), follows similar proposals in Wyoming and Arizona. The State Senator said the measure is born out of her own push for a decentralized alternative to banking systems that have long put up barriers for more people from marginalized communities.
The CFPB published a blog discussing rising car prices and auto loan debt. The blog states that the CFPB expects “that both the total amount of debt and the average loan size will continue to increase and that larger car loans will put increased pressure on some consumers’ budgets for much of the next decade.”
- ICYMI
The Securities and Exchange Commission (SEC) charged BlockFi Lending LLC (BlockFi) with failing to register the offers and sales of its retail crypto lending product. In this first-of-its-kind action, the SEC also charged BlockFi with violating the registration provisions of the Investment Company Act of 1940. To settle the SEC’s charges, BlockFi agreed to pay a $50 million penalty, cease its unregistered offers and sales of the lending product, BlockFi Interest Accounts (BIAs), and attempt to bring its business within the provisions of the Investment Company Act within 60 days.
Congressman Josh Gotthiemer (D-NJ) released a discussion draft of the Stablecoin Innovation and Protection Act of 2022, legislation focused on defining qualified stablecoins, carving qualified stablecoins out from more volatile cryptocurrencies, and putting appropriate protections in place for consumers and investors.
Congressman Warren Davidson (R-OH) introduced new legislation to protect self-hosted crypto wallets from government agencies. The bill aims “[t]o prohibit Federal agencies from restricting the use of convertible virtual currency by a person to purchase goods or services for the person’s own use, and for other purposes.” Specifically, the bill bars agency heads from restricting the ability to “[u]se virtual currency or its equivalent for such user’s own purposes, such as to purchase real or virtual goods and services for the user’s own use; or conduct transactions through a self-hosted wallet.”
- Upcoming Hearings & Events
Wednesday, March 2, at 10:00 AM EST: The U.S. Senate Committee on Agriculture, Nutrition, and Forestry will hold a hearing to consider the following nominations: The Honorable Christy Goldsmith Romero, Ms. Kristin N. Johnson, Mrs. Summer Kristine Mersinger, and Ms. Caroline D. Pham. Read our background information on the nominees here.
Wednesday, March 2, at 10:00 AM EST: The U.S. House Committee on Financial Services will host a hearing entitled “ Semiannual Hearings on the State of the Economy and Monetary Policy.” Federal Reserve Chair Jerome Powell will testify.
Thursday, March 3, at 10:00 AM EST: The U.S. Senate Committee on Banking, Housing, and Urban Affairs will host a hearing entitled “ Semiannual Hearings on the State of the Economy and Monetary Policy.” Federal Reserve Chair Jerome Powell will testify.