Executive Branch
U.S. Treasury Proposed Rule Re: Digital Asset Broker Reporting Requirements.
On Friday, August 25, 2023, the Internal Revenue Service proposed rules on how brokers of digital asset sales must report tax information to their customers and the IRS.
The rules are open for public comment until October 30, 2023, and a public hearing is scheduled for November 3, 2023. As drafted, brokers would be required to start reporting gross proceeds for sales of digital assets on or after January 1, 2025.
U.S. Government National Standards Strategy for Critical and Emerging Technology
On May 4, 2023, the White House published its strategy for developing standards for critical and emerging technology (“CET”). The report includes “Digital Identity Infrastructure and Distributed Ledger Technologies, which increasingly affect a range of key economic sectors” as a CET that is “essential for U.S. competitiveness and national security.
Blog Post Supporting a Digital Asset Mining Excise Tax
On May 2, 2023, the Council of Economic Advisers published a blog post touting a tax on crypto mining firms of up to 30 percent of the cost of electricity they use for mining operations. The proposal first surfaced in the President’s 2024 budget proposal, which can be found below.
Proposed Amendments to Exchange Act Rule 3b-16
On April 14, 2023, the SEC Reopened Comment Period for Proposed Amendments to Exchange Act Rule 3b-16 and Provides Supplemental Information
Treasury Report on “Illicit Finance Risk Assessment of Decentralized Finance”
On April 6, 2023, Treasury published a report on “Illicit Finance Risk Assessment of Decentralized Finance” warning that illicit actors may attempt to exploit DeFi to avoid anti-money laundering requirements and combatting financing of terrorism laws.
Economic Report of the President - 2023
On March 21, the White House Council of Economic Advisers published the report including a chapter on “Digital Assets: Relearning Economic Principles.” The report concludes that many of the purported benefits of crypto have not yet materialized. Nonetheless, some crypto assets may be here to stay, and there is potential in a U.S. CBDC and FedNow payment sytem.
President’s Budget Proposal - FY 2024
On March 9, 2023, the President unveiled his budget proposal.
Banking Regulators Issue Joint Statement on Liquidity Risks to Banking Organizations Resulting from Crypto-Asset Market Vulnerabilities
On February 23, 2023 the Federal Reserve Board of Governors, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency issued a Joint Statement on Liquidity Risks to Banking Organizations Resulting from Crypto-Asset Market Vulnerabilities
SEC Proposed Rule for Safeguarding Advisory Client Assets
On February 15, 2023 the SEC Published a Proposed Rule for Safeguarding Advisory Client Assets
FDIC Issues Cease and Desist Orders to Crypto Firms re Making False and Misleading Statements about FDIC Deposit Insurance
On February 15, 2023 the FDIC issued letters demanding two entities, CEX.IO Corp. (a cryptocurrency exchange) and Zera Financial (a non-bank financial service provider) cease and desist from making false and misleading statements about FDIC deposit insurance and take immediate corrective action to address these false or misleading statements. Additionally, the FDIC directed two websites, Captainaltcoin.com and Banklesstimes.com, to remove similar false and misleading statements about the FDIC-insured status of CEX.IO.
Letter to Zera Financial
Letter to CEX.IO Corp
Letter to Captainaltcoin.com
Letter to Banklesstimes.com
The Administration’s Roadmap to Mitigate Cryptocurrencies’ Risks
On January 27, 2023, the White House published a roadmap highlighting (1) risks posed by crypto, (2) how the administration is mitigating those risks, and (3) what it would like to see from Congress.
Joint Statement on Crypto-Asset Risks to Banking Organizations
On January 3, 2023, The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a joint statement to banking organizations, highlighting key risks associated with crypto-assets and crypto-asset sector participants of which banking organizations should be aware.
Background Resources:
Reports Issued Pursuant to the Executive Order on Ensuring Responsible Development of Digital Assets
Summary of next steps outlined in the White House Fact Sheet. The Fact Sheet provides a high-level summary of recommendations outlined in the individual agency reports.
Climate and Energy Implications of Crypto-Assets in the United States
White House Office of Science and Technology Policy. September 2022.
Technical Evaluation for a U.S. Central Bank Digital Currency System
White House Office of Science and Technology Policy. September 2022.
Department of Justice. September 6, 2022. EO § 5(b)(iii).
The Future of Money and Payments
Treasury. September 2022.
Crypto-Assets: Implications for Consumers, Investors, and Businesses
Treasury. September 2022. EO § 5(b)(i).
Action Plan to Address Illicit Financing Risks of Digital Assets
Treasury. September 2022.
Responsible Advancement of U.S. Competitiveness in Digital Assets
U.S. Dept. of Commerce. September 2022.
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