DeFi Weekly Roundup

June 4, 2022

Federal 

• A group of renowned technologists has joined forces to urge US lawmakers to crack down on the cryptocurrencies industry, marking a concerted effort to counter lobbying by blockchain companies.
• The Commodity Futures Trading Commission sued Gemini Trust Company LLC Thursday on allegations the crypto exchange’s staff misled the federal regulator during Gemini’s 2017 effort to launch trading of what would have been a landmark bitcoin futures contract.
• Cryptocurrency speculation is lumped in with other highly risky ventures in a series of new U.S. Securities and Exchange Commission videos meant to educate potential investors by comparing some investment choices with a game show.

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: A.7389C –  Implements a two year moratorium on crypto proof of work mining in the state. The bill passed second reading on 6/2 and was returned to the assembly. 
  • Louisiana: HCR 103 – Directs the Cash Management Review Board to consider and report on ways the state can utilize cryptocurrency. The bill was signed by the Government and enacted on 6/3.

• 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 Governor on 5/31 and has become law. 
• Arizona: HB 2204 – Would add virtual currency and NFT’s to tax deduction eligible purchases. The bill passed first reading on 5/31 and will go to the Senate.

International

• The Bank of England yesterday announced it would intervene to direct and oversee collapsing stablecoins should the British central bank decide that a stablecoin issuer “has reached systemic scale failure.” 
• Crypto exchanges should lose their licenses if found to have seriously breached anti-money laundering rules, European Union financial supervisors said. The recommendation comes as lawmakers reach the closing stages of landmark legislation known as MiCA, introducing an authorization regime for virtual asset companies.
• A German central banker has called for a bank-style international standard-setter for financial-technology innovations while dismissing decentralized finance as a “casino” for speculators.

Industry

• Fidelity Digital Assets, a subsidiary of the financial services giant Fidelity Investments, plans to double its headcount this year to meet the growing demand for crypto trading from institutional investors.
• Chipotle will now accept cryptocurrency through Flexa, a digital payments platform that had also previously partnered with Starbucks.