Blockchain
Cryptocurrency Regulatory Developments: Congressional Review Act, DOJ Charges, and More
From May 5 to May 20, 2024, several crucial regulatory actions and legal developments took place across the world that impacted the cryptocurrency industry. These updates range from the passage of a Congressional Review Act resolution to charges filed by the U.S. Department of Justice.
Congressional Review Act Resolution
According to a16z crypto, the House of Representatives and Senate have passed a bipartisan Congressional Review Act resolution that would rescind the Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 121. SAB 121 ordered companies that secure consumer cryptocurrencies to track the funds as liabilities on their balance sheets. For the resolution to take effect, the President must sign it.
Department of Justice charges
The Department of Justice (DOJ) has charged two brothers with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The charges are linked to a scheme to exploit a flaw in MEV-Boost, an open source software that allows validators to outsource block production. The exploit allowed the brothers to fraudulently obtain $25 million worth of cryptocurrency.
Closure of cryptocurrency mining facility
President Joe Biden has ordered the shutdown of MineOne, a cryptocurrency mining facility majority-owned by Chinese citizens and located near Warren Air Force Base in Wyoming. The President believes this poses risks to the national security of the United States.
Commodity futures trading commission shares
The Commodity Futures Trading Commission (CFTC) has resolved charges against Falcon Labs for failing to register with the CFTC as a futures commission merchant (FCM). This is the CFTC’s first action against an unregistered FCM that inappropriately facilitated access to digital asset exchanges.
Other developments
Other notable developments include actions by the Treasury Department, the Securities and Exchange Commission, and the White House. Internationally, developments have occurred in Canada, France, Indonesia, the Netherlands, the Philippines and the United Kingdom, as well as at the Bank for International Settlements.
The information above serves as an introduction to recent events that have impacted the cryptocurrency industry. The cryptocurrency regulatory landscape is complex and rapidly evolving, so staying informed is crucial for anyone operating in this space.
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