5/22/22 Roundup

DeFi Weekly Roundup

May 22, 2022

Federal 

  • The State Department, the Department of Treasury and the FBI have warned that North Korean agents posing as IT workers continue to target projects that involve virtual currency in the US.
  • Venture capital firm Andreessen Horowitz submitted recommendations to the Senate Banking Committee, highlighting four areas where the U.S. government can govern cryptocurrency and blockchain technology including DAOs. 
  • During a House Appropriations Committee hearing Wednesday, Securities and Exchange Commission Chairman Gary Gensler said he worries that more investors will be harmed in cryptocurrency markets. 

State 

  • Below is a summary of the latest legislative developments that have occurred this past week in state legislatures. Our master state legislative tracker can be found here. 
    • Colorado: SB 22-025 –  Would require the state treasurer to study the feasibility of using security token offerings for state capital financing. The bill was passed and signed on 5/17. 
    • Missouri: H.B. 1472 – Will expand money laundering code to assist in stopping money laundering using crypto. Has passed both houses and been delivered to the Governor for signature on 5/18. 
    • Louisiana: HCR 104 – Would prompt the Dept. of Revenue to study and report on the feasibility of accepting virtual currency as a form of payment of taxes, licenses, fees, penalties, and interest due to the state. The bill left committee on 5/19.

International

  • Portuguese Minister of Finance Fernando Medina has stated that cryptocurrencies will be subject to taxation in the near future, signaling a reversal from previous policies. 
  • The regulation of crypto-assets is likely to be discussed at a meeting of Group of Seven finance chiefs this week in Germany according to French central bank head Francois Villeroy de Galhau.
  • Sarah Pritchard, the executive director of markets at the United Kingdom’s Financial Conduct Authority reportedly said that the regulator will look at the recent volatility in the crypto markets when creating rules for the space in 2022.
  • Cyprus has prepared its own legislation to regulate crypto assets and is likely to adopt it before Europe finalizes a common regulatory framework.
  • Christine Lagarde, president of the European Central Bank, has warned that cryptocurrencies are worthless and should be regulated.

Industry

  • Coinbase has launched the Coinbase Institute — “a global crypto-native think tank grounded in evidence-based research”. 

The joint U.S.-EU Trade and Technology Council will collaborate on the research and development of technology to track carbon emissions, and will look at blockchain technology as a potential tool for measuring and utilizing lifecycle greenhouse gas (GHG) assessments.