6/29/2022 Roundup

DeFi Weekly Roundup

June 26, 2022

Federal 

  • The House Appropriations Committee has released a report accompanying the Financial Services and General Government appropriations bill. There are several mentions of blockchain technology, highlights can be found here.
  • At a Third Way event (Will China’s Authoritarianism Dominate the Digital World Order?), Carole House, Director of Cybersecurity and Secure Digital Innovation at the National Security Council, highlighted that the”White House is leading an assessment on the technology needs and capacity needs for a U.S. CBDC.” 
  • Jerome Powell, told a Senate committee Wednesday that officials at the US central bank are watching the crypto market closely amid a period of heightened volatility.
  • The Crypto Council for Innovation has pushed back against the Department of Labors guidance that precludes 401(k) administrators from including crypto investment options in their plans.
  • The FBI has joined the investigation of hackers who stole $100 million in cryptocurrencies from a popular product on the Harmony network.
  • On Thursday Michael Hsu, acting chief of the Office of the Comptroller of the Currency , said the recent fireworks in the crypto industry have further cemented his resistance to allowing lenders unfettered exposure to the digital assets markets.
  •  Sen. Cynthia Lummis stated in an interview with Protocol “The cryptocurrencies with the largest market value,  bitcoin and ether  are definitely commodities that will be regulated by the CFTC…but there are a number of very small cryptocurrencies that are going to probably be at the SEC”. 

State 

  • Below is a summary of the latest legislative developments that have occurred this past week in state legislatures. Our master state legislative tracker working document can be found here. 
    • Arizona: HB 2204 – Would add virtual currency and NFT’s to tax deduction eligible assets. The bill passed the both houses  on 6/24 and will likely proceed to the governor for signing.
  • Michigan: SB 0888 – Would create a cryptocurrency commission, passed the Senate on the week of 6/23.
  • Illinois: SB 3643 – Amends the Civil Administrative Code of Illinois to define cryptocurrency and cryptocurrency mining, it also modifies the definition of qualifying Illinois Data center and would promote the state as a mining hub. The bill lost a sponsor on 6/22, the bill has been held up in committee since 1/21. 

International

  • Electricity to all 118 government-authorized mining operators in Iran has been cut off as of 6/22 ahead of seasonal spikes in power demand with no indication of return to action. 
  • Crypto’s structural flaws make it an unsuitable basis for a monetary system, according to the Bank for International settlements. Instead, monetary systems could be built around CBDCs according to a report issued last week.
  • The Ontario Securities Commission determined that Bybit and KuCoin exchanges were operating platforms that allowed Ontario residents to trade unregistered securities.
  • Researchers at Russian bank VEB suggested that the country issue a gold-backed stablecoin for international payments to evade sanctions.

Industry

  • eBay and KnownOrigin, one of the most innovative non-fungible token marketplaces, announced last week that eBay has acquired KnownOrigin.
  • Uphold, a U.K. based exchange has announced it is shutting down its support for Venezuela due to “increasing complexity of complying with U.S. sanctions.”