Discover and read the best of Twitter Threads about #CryptoRegulation

#EUCI, with other 5 organisations and 55 signatories, has written an open letter addressing concerns regarding the #DataAct.

We call on lawmakers to reconsider and clarify certain aspects of it, to ensure neutrality and legal certainty in the #blockchain industry.

🟣 Article 2(16)

The current definition of 'Smart Contracts' is broad, and we fear it may lead to unintended consequences for existing #SmartContracts on public #blockchains, such as Ethereum, Avalanche, Cardano, Cosmos, IOTA, NEAR, Chromia, and Polkadot.

We propose three alternative solutions to bring more legal clarity:

substituting 'Smart Contract' with 'Digital Contract', clarifying the scope of Article 30, or limiting Article 2(16) to privately operated and permissioned electronic data records.

1/ In the ever-evolving world of emerging technologies, #SafeHarbor provisions serve a vital role in striking a balance between fostering innovation and providing legal protection for businesses operating in uncertain legal environments 🧵

#CryptoRegulation #EU

2/ By complying with specific rules or standards, entities can benefit from legal protection, allowing them to focus on promoting innovation in their respective industries.

3/ For instance, the #US Digital Millennium Copyright Act and the European e-Commerce Directive both provide safe harbor provisions aimed at protecting internet service providers from liability for third-party content.

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1/ Are you curious about how regulators can foster innovation in industries like #blockchain and #cryptocurrency while ensuring compliance? Enter the world of regulatory sandboxes 🧵

2/ Regulatory Sandboxes are an approach that empowers businesses to test their innovative products and services in real-world settings while being closely monitored by regulatory authorities.

3/ Unlike traditional regulation, regulatory sandboxes create an environment where regulators collaborate with innovators, ensuring that new ideas and business models adhere to #compliance requirements.

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The European Systemic Risk Board (#ESRB) has released a report diving into EU non-bank financial intermediation risk monitoring from June to December 2022 and the risks that could impact non-bank actors in the #crypto industry. We've read it for you👇

#CryptoRegulation

📌 Key risks identified are:

1️⃣ Persistent credit risk - Opaque business structures and unsustainable business models leading to default

2️⃣ Market risk - Boom and bust cycles fuelled by leverage and the speculative nature of assets

3️⃣ Liquidity risks - Business models built on maturity & liquidity transformations without appropriate safeguards, resulting in vulnerability to 'runs'

1/ In light of today's second political trilogue, we are sharing our position on #AMLR. We discuss our concerns & recommendations to strike the right balance between tackling financial crimes & fostering innovation in the #blockchain & #crypto industries.

2/ 🟣 We highlight the issue of double scoping of #CASPs as both financial institutions & a standalone category, potentially leading to legal confusion. We ask legislators to revert back to the EC's initial proposal for defining obliged entities under #AMLR.

3/ 🟣 We address the inclusion of #NFTs services as obliged persons, Metaverse, #DAOs & #DeFi arrangements. We urge legislators to remove unnecessary references, considering the diverse nature of NFTs & the nascent stage of the Metaverse and DeFi.

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Dan Gambardello

@cryptorecruitr

This week, the crypto world is going crazy with simultaneous developments that impact us all.

Here is everything you need to know and their significance. 🧵

1/6 Congress will hold a hearing on the future of digital assets, bringing regulatory clarity into focus.

The US stablecoin bill and a hearing with Treasury Secretary Yellen on the international financial system are also significant developments. #CryptoNews

@SenatorHagerty

2/6: US Senator @SenatorHagerty warns that SEC actions against crypto platforms pave the way for a CBDC. There's growing concern that lawsuits against Coinbase and Binance are aimed at eliminating potential competitors to a government-issued digital currency. #CryptoRegulation

Hussein Faraj

@nugenmediahub

Guys arguing BTC can be classified as a security under Howey test.

1/8: Let's explore why #Bitcoin and similar #cryptocurrencies aren't classified as securities under the Howey Test. This test assesses whether an arrangement involves an investment contract. #Crypto #HoweyTest

2/8: The Howey Test has 4 key points: an investment of money, expectation of profits, a common enterprise, and efforts of a promoter or third party. Let's break these down for Bitcoin. #CryptoRegulation #Bitcoin

3/8: Investment of Money: Yes, Bitcoin miners invest money in hardware and electricity, but they're not buying an investment contract from a third party. They contribute resources to validate transactions & secure the network. #CryptoMining

Dr. Julian Hosp

@julianhosp

1/10 🧵💡 Why is the US cracking down on #cryptocurrencies, causing significant market volatility. Is the global leader overlooking a trend, or is there a deeper reasoning? 🤔🌐💱 Let's take a look:

@SECGov

2/10 The reasons behind this crackdown are multifaceted 🧩 Critics suggest the U.S.'s primary concern isn't protecting the average investor, contrary to the claims of the @SECGov. #CryptoMarkets #InvestorProtection

3/10 The blooming crypto market, exceeding $2tn in 2021, is pulling capital away from traditional financial systems 🏦 The U.S., among other regulators worldwide, is amplifying its scrutiny of the industry. #Finance #MoneyTalks

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adi ✪

@_aditya_gautam

The recent #SEC scrutiny on #binance has sent ripples through the #crypto industry

Time to dissect the potential implications of this development for Binance and the broader crypto market📈

🧵Follow this thread for key takeaways
#BinanceSEC #CryptoRegulation

Increased regulatory scrutiny:

The SEC's move on #Binance hints that the days of laissez-faire for crypto exchanges might be over

Exchanges should expect tighter regulations and intervention which means its time to rethink strategy and operations

#CryptoRegulation

Loss of trust and reputation for Binance:

In finance, trust is everything. Binance's run-in with the SEC could impact its standing among users

Damage control through transparency and customer focus is the key
#BinanceTrust

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Balthasar Becker

@BalthasarBecker

@johnauthers

A recent post by John Authers @johnauthers raises some interesting questions about the US consumer market and #crypto industry. Let's look at some important points.

1/10 💵 Consumer discretionary stocks are outperforming staples, which is usually a sign of economic expansion. However, retail sales growth remains slow, causing some uncertainty. #Markets

2/10 📉 Surveys like those run by the University of Michigan and the Conference Board show that consumer expectations have waned since the start of the year. #ConsumerSentiment

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IOSCO recently published its long-awaited consultation report on regulating #CryptoAssets, consisting of 18 high-level recommendations for global regulators to take into consideration when crafting and enforcing rules in this area.

⏰ The deadline to provide feedback has been set for 31 July, with a view to finalising them by September/October this year

👇 Key points of IOSCO's recommendations EU's #MiCA framework:

Main focus: Market integrity & investor protection;
Require #CASPs to implement fair, orderly, and timely transactions;

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The European Systemic Risk Board (ESRB) has published a report addressing the systemic implications and policy options for crypto-assets and #DeFi within the #EU, warning that the current regulatory landscape has gaps that must be addressed.

#CryptoRegulation

The ESRB identifies 3 key priorities for mitigating risks:

1️⃣ Enhancing EU's capacity to monitor potential contagion risks between #crypto and traditional finance: this involves standardising reporting and disclosure requirements for institutions with exposure to crypto-assets.

2️⃣ Assessing the risks posed by crypto-conglomerates and leveraging crypto-assets: the ESRB highlights risk transmission channels and the potential negative outcomes related to the combined crypto-asset services within a single legal entity.

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Dagnum P.I.

@Dagnum_PI

@Conste11ation

1/🔍SEC Chairman Gensler suggests Proof-of-Stake (PoS) tokens may be securities under the Howey Test, but @Conste11ation's $DAG with Proof-of-Reputable-Observation (PRO) evades this definition. Let's dive in!🧵
coindesk.com/policy/2023/03…

@Conste11ation

2/💡PoS tokens raise concerns as investors expect returns by purchasing and staking tokens. However, in @Conste11ation's PRO, tokens are bonded to increase the reputation of a node, not directly tied to utility.

3/📈With $DAG, tokens are directly tied to bandwidth, not mere staking for returns. This distinction separates $DAG from other PoS tokens and potentially keeps it out of the SEC's securities classification.

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Seed Captain

@SeedCaptainX

1/8📢Exciting news! Stefan Tanase, Senior consultant in Crypto Accounting will be one of the speakers at the upcoming #SeedCaptain Conference!

Don't miss his insights on the future of crypto and blockchain.

Check out more about his experience 🧵👇

#CryptoAccounting #MultiversX

2/8 💱Stefan works at JASILL Accounting Business. His work focuses on implementing fiscal policies and integrating them into the blockchain field. He has extensive experience in the emission and transaction of cryptocurrencies.

#cryptoregulation #Accounting

3/8 ⏳ Stefan worked in the financial domain for 7 years and has been involved in the crypto universe since 2018. Despite being a newcomer, he has structured and translated the transactional flow of the most renowned crypto exchange in Romania into accounting language.

#Finance