5/27/22 Roundup

DeFi Weekly Roundup

May 27, 2022

Federal 

  • U.S. Federal Reserve Vice Chair Lael Brainard said that a CBDC could exist alongside stablecoins and provide a measure of safety. Brainard’s comments were part of testimony released in advance of her appearance in front of the House Financial Services Committee on Thursday.
  • Attorneys for cryptocurrency-trading platform Coinbase filed a motion this month to dismiss a class-action lawsuit arguing that 79 of the tokens listed on the firm’s platform are unregistered securities. The case may determine whether digital tokens are, for legal purposes, more similar to stocks or to gold.
  • The Federal Reserve finally released a much-delayed paper opining on the pros and cons of developing its own CBDC, but without coming to any firm conclusions.
  • Securities and Exchange Commissioner Hester Peirce stated this week that the U.S. has dropped the ball on crypto regulation and the knock-on effects of that failure keep her up at night.

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. 
    • New York: S 9410 –  Requires certain disclosures by a developer of virtual tokens in advertisements involving such virtual tokens; provides restrictions concerning advertising. The bill was introduced on 5/25. 
    • Louisiana: HCR 103 – Directs the Cash Management Review Board to consider and report on ways the state can utilize cryptocurrency. The bill entered committee on 5/25.
  • Colorado: H.B. 22-1053 – Would implement the design, development, and deployment of an online program for agricultural producers to learn about the use and benefits of implementing new digital, data-driven systems to facilitate trade in agriculture. Was signed by the Speaker of the House on 5/27 and will become law. 

International

  • SunCash, a financial institution authorized to provide Sand Dollars in the Bahamas, will allow holders of the Bahamian Sand Dollar to use facial recognition to authenticate themselves. It is the first time in history that consumers will be able to use facial recognition to buy goods and services with a CBDC.
  • Binance will help Kazakhstan develop digital assets regulation as the central Asian country looks to develop its crypto industry beyond bitcoin mining.
  • Portugal’s Congress rejected on Wednesday two bills that sought to tax cryptocurrencies, continuing uncertainty around the future of crypto taxation in the country. 
  • Australia’s newly-elected Prime Minister – Anthony Albanese – reportedly has three top issues he hopes to address including climate change, cost of living, and imposing comprehensive rules on the cryptocurrency industry.

Industry

  • The DeFi-focused startup Common has raised $20 million in its latest funding round. The funds will be used to further develop its platform, which aims to become the ultimate community management platform for DAOs. 
  • Ethereum core developer Preston Van Loon told a panel this week that the blockchain merge is likely in August if everything goes as planned. 
  • Tether on Thursday added to its roster of stablecoins, launching its MXNT token pegged to Mexico’s peso.

​​Korean crypto exchanges issued warnings on litecoin over confidential transactions this week. Similar warnings have come in advance of delisting in the past.