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Legislators from the World’s Largest Markets and Cryptocurrencies, 17th-24th July

July 26, 2020

Every Friday, Law Decoded provides an analysis of the week’s critical political, regulatory, and legal stories.

publisher’s Note

Without triggering fanfare prematurely, it was a week of red letters for crypto messages. Some of the largest markets in the world welcome new laws and decisions that promise to improve global approaches to the industry.

What we’re looking at seems to be the first fruits of a broad crop of interest in cryptocurrency, probably due to something we’ve been talking about for months: the pandemic has people at the highest levels who are rethinking the way they are Execute your transactions. The fact that blockchain technology has become a standard part of talks about monetary policy and international agreements has given regulators a new legitimacy to move closer..

Legislators from the World’s Largest Markets and Cryptocurrencies, 17th-24th JulyLegislators from the World’s Largest Markets and Cryptocurrencies, 17th-24th July

If you’ve noticed public attention for cryptocurrency over time, there are surely other spikes that would outshine the present. It occurs to me at the end of 2017. But The current attention of regulators around the world is unprecedented, not in terms of quantity but in terms of quality. You want to get into blockchain technology. This prudent license seems to freeze some of the world’s coldest crypto laws.

Kollen Post, Policy Editor, @the_postman_

US banks welcome crypto custody

The United States Currency Control Agency issued a new opinion that Banks can keep cryptocurrencies for customers.

The decision is a breakthrough in the institutionalization of crypto assets. Given consumer demand, banks have so far denied that they can keep crypto assets safe while transferring responsibility to the regulator. While the ruling does not require all banks to provide custody services, it empowers them to do so and opens up a whole new world..

Although many of the cryptocurrency believers are appalled at the idea of ​​passing custody of their tokens on to third parties, some people, and companies in particular, would feel more comfortable if they didn’t have their own private keys. And if you have a choice You may prefer an FDIC-supported custody account or purse.

The approval only applies to custody, which at that time would act as a locker instead of bank accounts. Banks will not be able to use the cryptocurrency for their own investments, as is the case with deposited money.

The news comes within months of Brian Brooks’ term in office at the helm of the OCC.to which he joined after leading the Coinbase legal team. With its cryptocurrency background, many Brooks see it as an almost evangelical figure for the industry.

New cracks in China’s big crypto wall

In an action that can help undermine one of the most famous cryptocurrency locks in the world, The Chinese Supreme Court has ruled in favor of a new protection of cryptocurrency as property.

China’s relationship with cryptocurrency is extremely bipolar. The country dominates the mining industry, but has long banned all cryptocurrency transactions. The latest ruling would give cryptocurrency property a new category and therefore be subject to legal protection that appears to violate the general ban.

The cryptocurrency ban in China has been interpreted by some as a means to clear the way for subsequent government events, including the promotion of blockchain technology from late last year and ongoing work on a CBDC. Perhaps, given the progress on these fronts, China is ready to relax these restrictions.to have lost consciousness that other beings are overcoming it.

The Russian Duma and the earlier threats of cryptocurrency illegality

The Russian legislature, the State Duma, has passed the long-awaited cryptocurrency bill in the country.

Very different versions of the bill have been published in the past two years. In recent months, some changes have suggested fines of up to seven years in prison for using the cryptocurrency. So as long as the latest version is still prohibits the use of cryptocurrency as money, enables trading as an asset, and has far less aggressive penalties than previous proposals.

Governments’ concerns about the use of crypto as a payment mechanism are widespread Many see assets like Bitcoin as a threat to monetary sovereignty. That’s fair, especially given the ruble’s collapse in 2014, which may have helped the Russians use Bitcoin. Despite the uncertain legal status, the country’s crypto market is huge. The bill should also end controversy over whether the government protects cryptocurrency property..

The law has yet to be approved by the Federation Council, the highest body of the Russian legislature, and has to be signed by President Putin.. However, these are largely formalities. Although more or less analogous to the Senate, the Council is much less enforceable in its relationship to the new legislation. Anything that stops the cryptocurrency bill after three readings in the State Duma would require a pretty shocking turn of events.

More readings

A team of Brookings Institution writers has a complete breakdown of the Design options for the development of the central bank’s digital currency.

Marta Belcher from the Electronic Frontier Foundation writes about it how the decision of the USA vs. case Gratowski neglects privacy concerns when exchanging cryptocurrencies.

Peter Van Valkenburgh from the Coin Center presents at new OCC decision on banks and the relationship between institutional acceptance and innovation.

Do not stop reading:

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