Every Friday, Law Decoded provides an analysis of the week’s critical political, regulatory and legal stories.
While President Trump in the United States is obstructing any transition effort for the arrival of the new administration, All eyes are on Joe Biden’s transition team and any clues about key political appointments.
What further complicates setting up a presidential team is that Most presidential appointments require the approval of the Senate. The Senate, meanwhile, is waiting for a runoff election in Georgia until January to win a majority. As with everything else America is in limbo.
It’s a fair bet that anyone appointed Treasury Secretary by Biden is less against crypto than Steven Mnuchin. But at the same time with regulators like the Trump-appointed Republicans, the Securities and Exchange Commission and the Commodity Futures Trading Commission, have taken the lead to provide clarity on the rules governing digital assets. We’re going to look at the case of Brian Brooks, whose status as acting currency auditor may not survive a new administration.
At the same time, cryptocurrencies are exchanged They have tightened their compliance with new anti-money laundering regulations, one of the toughest demands governments are pushing across the industry. As the regimes adapt, the actors in the crypto industry adapt to the regimes.
Brian Brooks’ Journey through Congress
Witnesses from federal financial supervisory authorities They appeared before the committees of the House of Representatives and the Senate to testify on the state of their work in the still shattered economy.
Was among those witnesses Brian Brooks, who has headed the office of currency auditor (OCC for its acronym in English) since May. The OCC is the tax office that regulates the Bundesbanks. Brooks joined the office after heading the Coinbase legal team and consequently was eager to advance an agenda for cryptocurrency.
While these developments in relation to cryptocurrencies have made big headlines for Cointelegraph readers, You also pissed off several Democrats on the House Financial Services Committee. Several signed a letter in which Brooks was asked to focus less on providing cryptocurrency guidelines to large institutions to support the bankless bank.
To be honest, this position isn’t new. The President of the Financial Services Committee, Maxine water (Democrat for the state of California), rHe met Brooks and his predecessor Joseph Otting, both republicans, for stalling the Community Reinvestment Act in the spring.
In this case it is very important to keep this in mind Brooks was never confirmed in his position assuming he would replace Otting during an election year in which his position was part of the priorities to be confirmed. So, Brook’s position is a bit tricky. A Biden presidency, especially without a Senate majority, will not seek to get the Republicans out of all positions established by the previous administration. But the Democrats on the Financial Services Committee are setting a stricter line that Brooks or the next controller must follow.
Blockchain Professor joins the Biden Transition Team
Gary Gensler, Who was President of the CFTC under the Obama Administration, He will join Biden’s transition team as a financial policy expert.
The good news for cryptocurrencies is that Gensler teaches blockchain technology and digital currencies at the Massachusetts Institute of Technology. This makes him the first to advise a new president with a certain level of experience in the field.
During your tenure at the CFTC Gensler led the implementation of Dodd-Frank (2010), the law that wanted to put finances online after the 2008 disaster. Because of this, Gensler was a formidable figure on Wall Street for his efforts to bring clarity to the swap markets, which didn’t have many laws before Dodd-Frank.
While Gensler’s familiarity with cryptocurrencies is obviously beneficial, his priorities historically suggest that he will be more confident about regulating the industry. It is likely that the current move to end money laundering on cryptocurrency platforms will continue. While the Trump administration has a reputation for rolling back a large chunk of financial regulation, its agents have been very efficient at cornering crypto exchanges. So it’s probably only a good thing that the person carrying out the robbery knows at least something about business and technology.
The exchanges are returning to the Netherlands
At the beginning of this year The Netherlands announced new measures to comply with the European Union’s Fifth Anti-Money Laundering Directive (AMLD5). This led to a small exodus from cryptocurrency companies.
The new requirements include the registration of all cryptocurrency service providers, which must be done before the end of the year. The first of them have arrived.
Among the first registered companies Most are institution-oriented, with only one currently serving the retail customers. However, it is important that these companies can survive. The AMLD5 is new to the way fiat-to-crypto exchanges are treated as “obligated entities,” which means they must take the same level of care in knowing your customers as traditional financial services. This is a controversial requirement, especially given the crypto community’s stance on privacy.
The leader of the Blockchain Association, Kristin Smith spoke about cryptocurrencies and the Biden administration with Jeremy Allaire from Circle.
The team at Coin center Thoroughly analyze money laundering, Data protection and FinCen’s role in tracking digital asset exchanges.
Ross Todd interviews the attorney he represented to the enigmatic “individual X”, who handed over $ 1 billion in cryptocurrency to the Justice Department last week.