2023-07-28

😵‍💫 Stablecoin Bill Tension Runs High!

July 28, 2023

Howdy, fellow DailyCoiners,

At the risk of jinxing it, it’s been quiet in the crypto markets this week, right?

Grab your rollerblades, and let’s…well...roll!

🍺 Stablecoin Storm Brews
🦖 Binance Bites Back
🎯 Military Takes Aim at Crypto!

🔦 Stablecoins in the Spotlight: US Committee Passes Regulatory Bill Amidst Partisan Divide

Despite a day full of tension and procedural maneuvers, the House Financial Services Committee has successfully advanced a comprehensive regulatory framework for stablecoins.

The journey wasn't smooth sailing, with the passage resembling a game of political space invaders filled with debates, blame games, and a few unexpected moves. 🕹️

Democrats criticized the haste, recommending a delay in the vote till September, while Committee Chair Patrick McHenry pointed fingers at the White House for the impasse.

The bill, designed to navigate the choppy waters of the US stablecoin market, secured approval with a 34-16 vote, mirroring yesterday's vote on the crypto market regulatory overhaul.

It’s a good start…

However, a separate crypto measure for self-custody, despite clearing the panel, looks set to run aground due to the split control of Congress.

They REALLY don’t want us to have control of our finances…do they?!

The bill's fate still hangs in the balance, like a tightrope walker without a net, waiting for bipartisan talks to revive its chances of becoming law.

🎤 Binance Calls for Dismissal: Pleads with Judge to Drop CFTC Charges

Binance, the international crypto giant, has filed a motion asking a federal judge to dismiss the civil charges filed against the company by the Commodity Futures Trading Commission (CFTC).

Binance and its former chief compliance officer, Samuel Lim, argued that the CFTC lacks jurisdiction over several of the charges.

The company compared its case to a game of international dominoes, asserting that most of the issues relate to actions taken outside the US and are thus "impermissibly extraterritorial."

The charges revolve around accusations of Binance operating illegally in the U.S. and facilitating illicit transactions.

Like a magic trick pulled from the defense’s playbook, motions to dismiss are common but rarely result in charges being dropped.

The stakes are high: if Binance loses, they may face a hefty fine and potential expulsion from the U.S. market.

A loss this would be, but…the U.S. is not the only country in the world! 🇺🇸

This case comes at a time when Binance and its U.S. subsidiary are also under scrutiny by the Securities and Exchange Commission for allegedly misdirecting billions in customer assets - like pointing out that your opponent is playing with a stacked deck.

As the legal tussle continues, only time will tell whether Binance's plea will cause the judge to fold or double down.

🔫 Crypto Crackdown Tacked onto $886B US Military Bill

The U.S. Senate has passed the 2024 National Defense Authorization Act (NDAA), including an amendment targeting cryptocurrency anonymity.

Like a hawk eyeing its prey, this legislation zeroes in on crypto mixers and anonymity-enhancing crypto assets. 🕊️

As long as they stay in their lane and focus on stopping shady military organizations from moving funds about… this is a good thing.

The bipartisan amendment, spearheaded by Senators Gillibrand, Lummis, Warren, and Marshall, symbolizes one of the most substantial congressional moves to date regarding crypto assets.

Drawing provisions from the 2023 Lummis-Gillibrand Responsible Financial Innovation Act and the 2022 Digital Asset Anti-Money Laundering Act, it mandates enhanced examination standards for crypto assets.

The question is, are they trusted to stay in their lane? 🛣️

Much like a detective on the hunt for hidden clues, the legislation also requires the Treasury to investigate methods of combating anonymous crypto transactions, such as through obfuscating mixers.

The bill's passage through the Senate is just the opening act of this legislative drama, with a House-Senate negotiation on the final version yet to come.