Iris Coleman
February 1, 2025 18:21
Take a look at the recent encryption policy update, including Tornado cash sanctions and the withdrawal of employee accounting boards of SEC. Understand the impact on the encryption industry.
According to the A16Z Crypto, the recent development of the encryption policy environment has gained significant interest in the ongoing legal process related to the change of SEC accounting guidelines for tornado cash and encryption managers.
Tornado Cash: Legal Procedure Update
Procedures have been recorded in the ongoing case of Tornado Cash in a significant update of the US District Court in the western Texas region. In 2022, the US Treasury, which the US Treasury first sanctioned for the money laundering activities, including the profits of North Korea’s cyber hacking, showed various developments. In November 2024, the Fifth Citizens’ Court of Appeals decided to rescue the case by withdrawing the case as a district court beyond the authority.
The Texas District Court is now preparing to resume legal procedures. Despite the media reports that it suggests the reversal of sanctions, sanctions are still valid until the new court order is issued. The outcome of this case can have a wide range of impacts, especially considering the possibility of a similar proceedings and cases to the Supreme Court.
SEC withdrew the employee accounting bulletin board 121
In another major policy change, the SEC withdrew the employee accounting bulletin board 121, and previously demanded that companies protect their customer’s password assets and report them as debt. This guideline, which was implemented since April 2022, faced a significant opposition from policy makers who claimed that it had reached too much.
With issuance of employee accounting bulletin board 122, the manager can now apply the standard accounting principle to reflect the nature of custody contracts, not debt. This change is expected that banks will be able to participate in encryption custody without the burden of additional debt.
SAB No. The abolition of 121 followed the efforts of the two party councils to reverse the bulletin board that President Biden refused in May 2024.
Administrative order on digital finance technology
Trump recently issued an administrative order to strengthen US leadership in the field of digital finance technology. This command emphasizes the importance of digital assets and blockchain technology in leading innovation and economic growth. In addition, we propose the establishment of a national digital asset stockpil that occurs from the seized cryptocurrency through the law enforcement efforts.
The administrative order emphasizes the administration’s promise to support the responsible development and use of digital technology, and sets the stage for further regulatory adjustment.
These policy updates have an important stage in the evolving regulatory environment to evolve in cryptocurrency and have a big impact on the industry. Stakeholders should maintain information as these developments develop.
Image Source: Shutter Stock