US Senators Prefer Crypto Bank Custody Over CBDCs
Five senators have formed an alliance to halt the plans of the Biden administration for launching CBDCs. This group of US legislators has co-signed a bill to bar the digital dollar project. The anti-CBDC bill is led by Senator Ted Cruz, Sen.Rick Scott, Sen. Mike Braun, Sen. Bill Hagerty, and Sen. Ted Budd. The bill in question is called the CBDC Anti-Surveillance State Act.
Anti-CBDC Bill
This bill challenges the authority of the Federal Reserve to launch and manage a CBDC. At the same time, the subject matter of the bill bars the Fed from offering certain types of products and/or services directly at a retail scale. Additionally, this bill will prevent monetary policy implementation through CBDCs and financial control or management utilities to take place via digital dollar.
The House Financial Services Committee (HSFC) voted to pass a new resolution. This resolution seeks to overrule a guideline that prevents banking institutions from offering crypto custodial services.
This resolution when approved will prevent Staff Accounting Bulletin No. 121 or SAB 121 issued by SEC in March, 2022. This bulletin contains a series of recommendations that require financial institutions to treat cryptocurrency reserves as liabilities.
The Impact of Blockchain and Decentralization
HFSC officials stated in a recent press release that the resolution will block SAB 121 and ensure that consumers have protection against any regulatory obstacles. In this manner, banking firms will be able to act as custodians for digital assets. Meanwhile, SEC Commissioner Hester Peirce has noted that the United States needs lesser centralization and simpler regulatory infrastructure.
She was attending the ETHDEnver conference. She is also colloquially called Crypto Mom. Speaking with the media she noticed that decentralization ensures resilience and strength for the financial industry. Furthermore, she pointed out that decentralized entities do not operate in accordance with the existing regulatory framework of the SEC. Additionally, she talked about a wide range of crypto-related topics.
One of these topics was policy direction in the aftermath of the next US Presidential elections in 2024. Furthermore, she also shed light on the matter of spot Bitcoin ETFs. At the same time, she shared some useful insights regarding CBDCs-related legislation and the impact. She shared some insightful information regarding financial surveillance in the context of digital dollar.
The Changing Face of Regulatory Infrastructure on an International Scale
The Commodity Futures Trading Regulatory Agency (Bappebti) recently asked the Finance Minister office to reevaluate the dual taxation implication on crypto trades. The officials at Bappebti asked the government to reassess the VAT of 0.11% on every crypto transaction and 0.1% capital gains on crypto trades. The country collected around $2.49 million in 2023 in the form of crypto-related taxes. These taxation laws have been effective in the nation for two years.
The presidential advisor of Nigeria has denied the probability of $10 billion fine on Binance. Bayo Onanuga, the special advisor to the Nigerian President recently issued a clarification regarding his BBC interview. He told a local media publication that his remarks at BBC were misquoted.
He further explained that the Nigerian government does not intend to impose a fine on Binance exchange and there have been no such notifications or communications issued to the crypto exchange.
It is worth noting the Central Bank of Nigeria (CBN) has been critical of Naira trading volume at crypto exchanges. To alleviate the government concerns, Binance has decided to remove Naira from its peer-to-peer trading service. Meanwhile, South Korea’s leading regime has delayed the proposal to provide an easing of crypto restrictions. If applied, the policy change will lift the ban on Bitcoin ETFs.
At the start of the ongoing month, there was news about deliberate delays in crypto taxation profits and crypto spot ETF trading permission for local firms. Local media outlets noted that the People Power Party, the ruling political regime of the nation is causing the delay to haul bigger vote banks.
In contrast, the opposition party namely the Democratic Party has also quoted pledges about cryptocurrency ETFs as part of their campaign promises.
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