Tuesday, 21 March 2023

Crypto News

Anti-CBDC bill in the US, no algo stablecoins for Canada: Law Decoded, Feb. 20–27

Anti-CBDC bill in the US, no algo stablecoins for Canada: Law Decoded, Feb. 20–27

Last week was relatively calm regarding enforcement news but brought some peculiar local developments in regulation. United States Representative Tom Emmer introduced legislation in the U.S. House of Representatives that could prevent the Federal Reserve from issuing a central bank digital currency (CBDC). According to the Minnesota lawmaker, the bill could prohibit the Fed from issuing a digital dollar “directly to anyone,” bar the central bank from implementing monetary policy based on a CBDC, and require transparency for projects related to a digital dollar.

The Canadian Securities Administrators published a notice describing new commitments it expects from crypto asset trading platforms seeking registration in Canada. The new commitments touch on issues that include segregation of assets, leverage, determination of capital, transparency and others. But, most notably, it anticipates a ban on algorithmic stablecoins.

In a joint statement by three U.S. federal agencies, the banking sector was advised against creating new risk management principles to counter liquidity risks from crypto-asset market vulnerabilities. The Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency released a statement reminding banks to apply existing risk management principles when addressing crypto-related liquidity risks.

By July 2023, The Financial Stability Board, the International Monetary Fund (IMF) and the Bank for International Settlements will deliver papers and recommendations establishing standards for a global crypto regulatory framework. The announcement was made by representatives of the 20 biggest economies of the world, collectively known as the G20.

IMF says no crypto as legal tender

The IMF’s executive board endorsed a crypto asset policy framework that did not grant crypto assets an official currency or legal tender status. The “Elements of Effective Policies for Crypto Assets” paper develops a framework of nine policy principles that address macro-financial, legal and regulatory, and international coordination issues. According to the first principle, safeguarding monetary sovereignty and stability, “do not grant crypto assets official currency or legal tender status.”

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Emojis count as financial advice and have legal consequences

The United States District Court judge for the Southern District of New York ruled that emojis like the rocket ship, stock…

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