From May 5 to May 20, 2024, several significant regulatory actions and legal developments affecting the cryptocurrency industry have unfolded globally. These updates range from the passage of a Congressional Review Act resolution to indictments filed by the U.S. Department of Justice.
Congressional Review Act Resolution
According to a16z crypto, the House and Senate passed a bipartisan Congressional Review Act resolution to revoke the Securities and Exchange Commission’s (SEC) Employee Accounting Disclosure (SAB) 121. SAB 121 would require companies that secure consumer cryptocurrencies to show their funds as liabilities on their balance sheets. For a resolution to take effect, it must be signed by the President.
Justice Department prosecution
The Department of Justice (DOJ) charged the two brothers with conspiracy to commit wire fraud, wire fraud, and money laundering. The allegations relate to a scheme to exploit a flaw in MEV-Boost, an open source software that allows validators to outsource block production. This exploit allowed the brothers to fraudulently obtain $25 million worth of cryptocurrency.
Cryptocurrency mining facility closure
President Joe Biden has ordered the closure of MineOne, a cryptocurrency mining facility majority-owned by Chinese nationals and located near Warren Air Force Base in Wyoming. The President believes this poses a risk to American national security.
Commodity Futures Trading Commission Action
The Commodity Futures Trading Commission (CFTC) has settled charges against Falcon Labs for failing to register with the CFTC as a futures commission seller (FCM). This is the CFTC’s first action against an unregistered FCM that improperly facilitated access to digital asset exchanges.
Other developments
Other notable developments include actions by the Treasury Department, Securities and Exchange Commission, and the White House. Internationally, there have been developments in Canada, France, Indonesia, the Netherlands, the Philippines, the United Kingdom and the Bank for International Settlements.
The above information serves as a primer on the recent events affecting the cryptocurrency industry. The cryptocurrency regulatory environment is complex and rapidly evolving, so staying informed is important for anyone active in this space.
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