The scrutiny intensified after Senator Elizabeth Warren and other lawmakers questioned whether Sacks had surpassed the permitted number of days as a Special Advisor for AI and Crypto at the White House. In a letter, Warren, along with other senators and congress members, expressed concern about Sacks’ tenure.

David Sacks and His Role in Crypto Regulation

Appointed in December 2024, Sacks’ presence sparked optimism within the crypto community, raising expectations about his influence on upcoming crypto policies before the 2026 midterm elections. However, lawmakers allege that Sacks is “deeply invested” in the crypto and AI sectors, emphasizing the need for transparency regarding his workdays since President Trump’s inauguration.

With 167 weekdays having passed, excluding public holidays, Sacks needed to ensure at least 37 days off to remain within the 130-day limit. This limit is crucial in preventing conflicts of interest, as SGEs often juggle private-sector roles alongside government duties.

Concerns Over Potential Conflicts of Interest

Lawmakers argue that Sacks’ ties to Craft Ventures and other crypto and AI companies could influence his regulatory decisions. The White House had waived certain ethics restrictions to allow Sacks to maintain his investments in these sectors.

Earlier this year, Sacks claimed to have liquidated his crypto holdings before Trump’s inauguration. Yet, Warren previously questioned these assertions, urging Sacks to disclose his financial interests publicly to the Office of Government Ethics.

Despite reaching out, Cointelegraph has not received a comment from David Sacks on these matters.

Warren’s Continuous Scrutiny of Sacks

Elizabeth Warren’s scrutiny of Sacks is not new. In March, she challenged Sacks to substantiate his claims of divesting from digital assets. Warren expressed concerns about the potential benefits to Trump and other individuals from the executive branch’s digital asset policies, emphasizing the necessity for financial transparency.

The debates surrounding David Sacks and his role in crypto regulation highlight the complexities of balancing private interests with public duties, especially in rapidly evolving sectors like cryptocurrency and AI.

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Understanding Liquid Staking in Crypto

Liquid staking refers to a process where cryptocurrency holders can stake their assets to earn rewards while maintaining liquidity. This method allows users to participate in network validation without locking up their assets, offering a more flexible approach to earning staking rewards.

SEC’s Clarification on Liquid Staking

The SEC’s recent announcement highlights that, based on specific facts and circumstances, certain liquid staking activities do not involve the offer and sale of securities. This clarification stems from sections of the Securities Act of 1933 and the Securities Exchange Act of 1934. By defining these boundaries, the SEC aims to provide clearer guidance for digital asset regulation.

The Impact of SEC’s Decision

SEC Chairman Paul Atkins emphasized that this declaration is a substantial move forward in delineating crypto asset activities that do not fall within the SEC’s jurisdiction. This development may encourage more innovation within the crypto space, as companies and investors gain a clearer understanding of regulatory requirements.

What This Means for Crypto Investors

For investors and stakeholders, the SEC’s stance on liquid staking offers a degree of reassurance. With a more defined regulatory framework, participants can engage in liquid staking activities with increased confidence, knowing that not all such activities are considered securities offerings.

Looking Ahead: The Future of Liquid Staking

As the SEC continues to adapt to the rapidly changing crypto landscape, further updates and clarifications are expected. This evolving regulatory environment requires continuous attention from both investors and crypto businesses. The current statement from the SEC is a developing story, and more information will be integrated as it becomes available.

In conclusion, the SEC’s clarification on liquid staking activities not only provides a clearer path for crypto asset regulation but also fosters a more favorable environment for innovation and growth in the digital economy.

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Traders can now engage in two types of perpetual futures contracts — nano Bitcoin Perpetual Futures and nano Ethereum Perpetual Futures. According to Coinbase’s statement, “Despite the global popularity of perpetual futures in the crypto sector, US traders have been left behind due to intricate regulatory scenarios. That changes today.”

The exchange further clarified that these new perp futures products come with up to 10x leverage and have a lifespan of 5 years, a departure from the standard monthly or quarterly expiration dates found in traditional futures products. Coinbase affirms this change provides traders with the flexibility to adopt more long-term strategies. A trading fee starting at 0.02% per contract applies.

This development aligns with the recent legislative progress in the US. The GENIUS Act, which sets forth a clear framework for stablecoins, was recently enacted. The Clarity Act, which provides a well-defined regulatory framework for cryptocurrencies, has also been passed by the US House of Representatives. This act outlines how the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will oversee regulations.

The implementation of these legislative measures has boosted Bitcoin, Ether, and other prominent altcoins, fueling the ongoing market rally. Coinbase shares also achieved a new high, reaching over $437 last Friday, following a $100 billion market capitalization earlier in the week. However, the shares declined by 1.47% on Monday, closing at $413.63, as per Google Finance data.

Disclaimer: The Block is a majority-owned media outlet of Foresight Ventures as of November 2023. Foresight Ventures invests in other companies in the crypto space. Cryptocurrency exchange Bitget is an anchor LP for Foresight Ventures. The Block maintains its independence to provide unbiased, relevant, and timely information about the crypto industry. This article is for informational purposes only and should not be considered as legal, tax, investment, financial, or other advice.

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The statement, which was issued on Monday, emphasizes that the three major US federal banking agencies are concerned with the safekeeping of cryptocurrencies. The agencies have clarified that the statement does not establish any new supervisory expectations.

The agencies urged banking organizations to evaluate potential risks associated with new crypto-related products and services. Those risks encompass cybersecurity, control over keys, and the management of other sensitive information, as per the joint statement.

“A banking organization that is contemplating offering custody services for crypto-assets should consider the evolving nature of the crypto-asset market, the underlying technology of crypto-assets, and implement a risk governance framework that adapts to the relevant risks,” the agencies advised.

In the past few months, since the inception of President Trump’s administration, several agencies have provided clarifications on their stance toward crypto regulations. For instance, in May, the OCC stated that US banks are allowed to buy and sell crypto assets on their own behalf. The FDIC has also adjusted its position on cryptocurrencies, stating that it will permit financial institutions to engage in crypto activities without prior notification to the agency.

Key agencies have also seen the appointment of crypto-friendly regulators. Last week, Jonathan Gould, a former blockchain executive, was confirmed by the Senate to lead the OCC. Gould had served as the chief legal officer at Bitfury and was previously the senior deputy comptroller and chief counsel at the OCC.

Disclaimer: The Block is an independent media outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver unbiased, impactful, and contemporary information about the crypto industry. This article is intended for informational purposes only and is not to be interpreted as legal, tax, investment, financial, or other advice.

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The ban was introduced by Council member Paul Dillon, who stated that crypto ATMs have emerged as a favorite instrument for scammers aiming to swindle unsuspecting victims. Dillon believes that this ban will shield Spokane residents who are vulnerable to scams linked to digital currency kiosks.

In an interview with The Spokesman-Review, a local newspaper, Dillon explained that the measure aims to ban new kiosks as well as dismantle existing ones. He pointed out that many of these kiosks are situated in impoverished neighborhoods and convenience or grocery stores.

The ban comes in response to the city witnessing a significant surge in scams related to cryptocurrency kiosks, resulting in victims losing thousands of dollars. The ban is seen as a tool to safeguard consumers from individuals who predominantly rely on digital currencies to defraud others.

Following this ordinance, operators of crypto ATMs have 60 days to dismantle kiosks throughout the city or risk facing civil violations and the revocation of their business licenses. The Spokane City Council will monitor the situation and evaluate the impact of the ordinance on the frequency of reported crimes related to crypto kiosks.

Police detective Tim Schwering revealed that money placed into these kiosks often ends up in countries like China, North Korea, or Russia. Criminals posing as law enforcement or tax officials trick victims into buying crypto at these ATMs under the pretense of protecting their money or avoiding imprisonment.

In April, the FBI reported nearly 11,000 complaints and over $246 million in losses associated with crypto ATM scams in 2024, marking a 31% increase from 2023. The elderly are particularly at risk, with two-thirds of crypto kiosk fraud victims being over 60 years old.

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During the House Appropriations Committee meeting, which supervises the funding of federal agencies, Rep. Glenn Ivey, a Democrat from Maryland, highlighted certain events preceding Trump’s January inauguration. He noted that Tron, a company owned by Sun, had purchased $30 million in tokens from World Liberty Financial—a DeFi company supposedly inspired by the former president.

Subsequently, the SEC decided to suspend its fraud lawsuit against Sun and his businesses, including Tron, effectively putting it on hold. Alongside this, a memecoin associated with Trump has been in circulation, and a special gala for the top 220 memecoin holders is planned for later this week. Sun declared his participation as one of these holders in a post on X early Tuesday. “Delighted to back @POTUS and thankful for the invitation from @GetTrumpMemes to attend President Trump’s Gala Dinner as his TOP fan!” Sun posted.

Ivey expressed concern over these events, stating, “This, in my opinion, reeks of impropriety. I would hope that the SEC is looking into this matter.” Atkins referred to Sun’s case as an “active case” and emphasized that the SEC does not classify memecoins as securities.

Atkins, appointed by Trump, has announced a “new day” for the SEC after the previous chair, Gary Gensler, adopted a less welcoming attitude towards the crypto industry. Gensler’s tenure saw a cautious approach to crypto and multiple charges against industry leaders. Many of these cases were later dismissed. Atkins declared in his prepared testimony that his approach to crypto regulation would be through notice and comment rulemaking rather than regulation through enforcement.

During the hearing, Rep. Chuck Edwards, a Republican from North Carolina, asked Atkins about the funding requirements of the SEC’s new crypto task force. Led by Commissioner Hester Peirce, the task force was established earlier this year by former acting chair Mark Uyeda with a mission to conduct industry roundtables and clarify application of securities laws to crypto. “I’m not entirely sure,” Atkins replied, “It’s staffed by current employees and Commissioner Peirce is leading it, so it doesn’t require any additional funding.”

Disclaimer: The Block is an independent news outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block operates independently and aims to deliver objective, timely, and impactful information about the crypto industry. This article is not meant as legal, tax, investment, financial, or other advice.

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Harris stated, “Members of Congress regularly approach us [NYDFS] for information about our procedures, regulations, and advice on how to approach legislation concerning federal regulation and legislation.”

Harris acknowledged that the NYDFS had been “unnecessarily harsh” and resource-deficient in the past. However, she noted that the NYDFS now operates on a “tough but fair” basis under her leadership, with the digital currency oversight team having since doubled.

Before assuming her role at the NYDFS in September 2021, Harris had worked in the education, nonprofit, and private sectors. In New York State, crypto businesses must secure a BitLicense or a limited-purpose trust charter. Harris said, “We’ve added nine new regulatory guidelines, so securing a BitLicense or a limited-purpose trust charter remains quite challenging.”

However, the stringent regulations have proven their worth. Crypto companies such as FTX, Voyager, and Celsius, which failed to meet NYDFS standards and subsequently went bankrupt, stand as examples. Legal proceedings against these companies have taken years and caused industry-wide disruptions. FTX’s founder, Sam Bankman-Fried, and Celsius Network’s Alex Mashinsky received prison sentences of 25 and 12 years respectively, while Voyager’s founder, Steven Ehrlich, is currently facing legal charges for alleged customer deception.

Despite recent disputes over the GENIUS Act, Harris remains “hopeful” that Congress will eventually pass stablecoin legislation. She stated, “We’ve been collaborating with Congress on various aspects of their crypto and stablecoin legislation for nearly three years now.”

Harris also revealed that all recent legislations related to stablecoin regulation have undergone scrutiny by New York officials. “There isn’t a version of any of those bills, whether they’re from the House or Senate, Republicans or Democrats, that doesn’t seek feedback from our team,” she stated, adding that most of these suggestions have been integrated into the legislations.

According to Harris, the NYDFS continues to aim to be “a state path for crypto companies.”

The post New York’s Significant Influence on the Crypto Ecosystem: Insights from NYDFS Head appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

CEO of Tether, Paolo Ardoino reportedly stated that the auditing process will be smoother in the pro-crypto environment fostered by US President Donald Trump. This follows increasing apprehension within the industry that Tether might face a liquidity crisis similar to FTX, due to the absence of third-party audits.

Ardoino expressed optimism about the upcoming audit, expressing to Reuters on March 21, “If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen, so we are very happy with that.”

Despite not specifying which of the Big Four firms – PwC, EY, Deloitte, or KPMG – Tether plans to engage, Ardoino emphasized that the audit was of paramount importance to the company. Tether, which currently releases quarterly reports but not a comprehensive annual audit, is making strides towards offering greater assurance to investors and regulators.

The company recently appointed Simon McWilliams as its Chief Financial Officer, a move seen as a preparatory step towards the impending financial audit. Tether’s USDT stablecoin maintains stability by claiming it’s pegged to the US dollar at a 1:1 ratio, backed by reserves that include traditional currency, cash equivalents, and other assets.

However, Tether’s lack of transparency has been a cause for concern in the industry. In 2024, founder of Cyber Capital, Justin Bons, referred to Tether as one of the significant threats to crypto due to the unverified claims of holding $118B in collateral. Similarly, a report by Consumers’ Research criticized Tether for its opaqueness.

In 2021, Tether was fined a $41 million civil monetary penalty by the United States Commodities and Futures Trading Commission (CFTC) for misrepresenting that USDT was fully backed by reserves.

Recently, Tether expressed dissatisfaction over new European regulations that compelled exchanges like Crypto.com to delist USDT and nine other tokens to comply with MiCA. A spokesperson for Tether voiced concerns over the “rushed actions” and their unclear basis.

At the time of writing, Tether has yet to respond to Cointelegraph’s request for a comment.

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The landscape of finance is changing, and the U.S. Securities and Exchange Commission (SEC) finds itself wrestling with the fast-paced and decentralized nature of cryptocurrencies, exemplified in the current stand-off with Binance, the world’s largest crypto exchange. The root cause of this struggle lies in the fundamental transformation that cryptocurrencies bring about – a shift away from centralized control, which agencies like the SEC have traditionally exerted.

The SEC has been persistent in its efforts to exert control over the crypto industry, viewing it as a threat to the established financial ecosystem. This view is rooted in the fear of losing oversight of financial transactions, a critical component of maintaining economic stability and preventing financial fraud. The lawsuit against Binance is just the latest salvo in this ongoing war. But the question remains – can the old guard adapt fast enough to the new realities of decentralized finance?

Despite these aggressive moves, the crypto industry continues to thrive. Each attempt by the SEC or other regulatory bodies to impose controls on the crypto space only seems to highlight the resilience of this decentralized system. Cryptocurrency, by design, resists centralized control, and each attempt at imposition only strengthens the resolve of the community and the robustness of the technology.

Binance: Standing Strong Amid Regulatory Turbulence

Binance, as the leading figure in the crypto industry, represents a symbol of the resilience and evolution of decentralized finance. It’s not the first time the exchange has faced regulatory challenges, and it likely won’t be the last. However, the resolve of Binance and its community remains unwavering.

Standing at the forefront of the crypto revolution, Binance has demonstrated an ability to adapt, innovate, and persist despite regulatory pressures. This unwavering commitment to the crypto community serves as an inspiration for many other blockchain companies and crypto enthusiasts.

While Binance faces allegations from the SEC, it’s important to remember that such challenges are often a sign of industry evolution. The crypto industry is not about disrupting for the sake of disruption, but about creating a more inclusive, transparent, and efficient financial system. We stand with Binance in this pursuit.

Crypto Will Survive: An Inevitable Future

In the grand scheme of things, it’s clear that the decentralized nature of cryptocurrency is not a trend, but a feature of an inevitable future. We stand at the precipice of a significant shift, one where financial power is wrested from the hands of a few centralized entities and redistributed to the many.

Every action from the SEC, every lawsuit, and every warning is a testament to this shift. Cryptocurrency is here to stay, and no amount of regulation or control can quash the spirit of decentralization.

In essence, we stand with crypto. We stand with Binance. We stand with a future that promises a more transparent, equitable, and efficient financial system for all.

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Introduction

The crypto world has recently been abuzz with discussions regarding President Biden’s proposed tax on cryptocurrency mining. US Sen. Cynthia Lummis, a known crypto enthusiast, has expressed her skepticism over the implementation of this proposed 30% tax, stating it “isn’t going to happen”​¹​​²​. This article aims to delve deeper into the implications of this proposed tax, the reactions from the crypto community, and potential future legislation related to the industry.

Understanding Biden’s Crypto Mining Tax Proposal

The Biden Administration proposed what is termed as the Digital Asset Mining Energy (DAME) excise tax in its budget for fiscal year 2024 in March. As per the proposal, mining firms would have to deal with a tax equivalent to 30% of the cost of the electricity they consume. The tax, planned to be implemented next year, would be gradually phased in over three years, with an incremental rate of 10% per year to ultimately reach the 30% target by the end of 2026​³​.

While this proposal has been presented as a measure towards environmental sustainability, it has received mixed responses from the crypto community. Critics argue that this tax could potentially drive mining firms out of the country and might not raise the intended funds​⁴​. Marathon Digital’s CEO, Fred Thiel, voiced his concerns at the Bitcoin 2023 conference in Miami, stating that the tax wouldn’t result in more available renewable power, but rather create less due to infrastructural limitations and long waiting lists for interconnecting new renewable energy projects​⁵​.

Future Legislation and the Crypto Community’s Response

Despite the controversy surrounding the proposed tax, discussions about future legislation related to crypto regulation continue. Sen. Lummis, along with Sen. Kirsten Gillibrand, has been working on a bill called the Responsible Innovation Act. This legislation aims to take a comprehensive approach to regulating crypto and is planned to be reintroduced in the coming month with some changes, including added consumer protections​⁶​.

Discussions within the House Financial Services Committee, however, highlight divisions among lawmakers regarding the regulation of stablecoins. The committee members seem to have different views on how best to regulate this important facet of the crypto market, with two stablecoin bills having emerged ahead of a recent hearing​⁷​.

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