The SEC is planning to release a framework for how digital assets would be regulated and the main question remains, which type of tokens will fall under this ruling?
The “digital and digitized assets: federal and state jurisdictional issues” is a regulatory issue that has been present for a while. There are multiple jurisdictions to consider when it comes to digital assets, which makes the legal landscape difficult.
Is it true that you’ve lost an ally?
The Securities and Exchange Commission (SEC) in the United States has enormous authority over the future of digital assets. As a result, it is critical that its Commissioners have a constructive attitude toward the industry. Commissioner Hester Peirce and Commissioner Elad Roisman are widely considered as fitting the bill among the present ranks. Commissioners Peirce and Roisman have already written letters of disagreement, noting what they feel are insufficiently explicit requirements imposed on enterprises dealing with digital assets.
Commissioner Roisman recently announced his impending resignation, perhaps signaling the loss of a key supporter for the digital assets industry.
“Today, I addressed a letter to President Biden, advising him that I want to quit my job by the end of January,” said Commissioner Roisman. The greatest honor of my professional life has been serving the American people as a Commissioner and Acting Chairman of this organization. Working with my incredible SEC colleagues, who really care about investors and our markets, has been a true honor. I am dedicated to working with my other Commissioners and the SEC’s excellent staff over the next several weeks to achieve our objective of safeguarding investors, preserving fair, orderly, and efficient markets, and enabling capital creation.”
All eyes will be on the SEC in the coming months as it searches for a replacement for the now-vacant position. Will the regulator pick a proponent of digital assets or a detractor?
Ambiguity in Regulations
Take a look to Russia if you believe the regulatory structure around digital assets in the United States is complex. Governor Elvira Nabiullina of the Central Bank of Russia (CBR) issued a statement on digital assets on December 17th, stating that the CBR “cannot encourage investments in such forms of assets” and that the Russian financial infrastructure “should not be utilized for transactions with cryptocurrencies.”
This statement, which bolstered the credibility of Reuters reporting of a possible total ban on digital assets in Russia, seems to have qualifiers that ease the impact to aficionados. Russian nationals would only be able to purchase digital assets via “domestic infrastructure and middlemen.” While now confined to foreign investments solely, this clarification provided by Deputy Governor Vladimir Chistyukhin of the CBR ensures that digital asset ownership will stay lawful.
This perplexing uncertainty, however, looks to be short-lived, since Chistyukhin mentioned upcoming legislative changes as well as a complete report on the government’s position on digital assets.
India kicks the can down the road
There have been a number of occurrences in the last month that have added to the FUD around digital assets. Evergrande, the Omicron version, stimulus removal, a prospective ban in India, and other issues are among them. While most of these difficulties remain, it seems that worries of a ban in India are unfounded for the time being, since a law suggesting such a measure did not appear to make the cut for consideration in India’s winter session of parliament.
It’s vital to note that the bill’s debate will most likely be postponed rather than halted entirely. By the time the measure is debated, an alternative legal framework should have been created for consideration. According to recent reports, policy is shifting toward regulating digital assets as commodities rather than outright prohibiting them.
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“The regulatory ambiguity surrounding digital assets persists – Regulations Weekly.” This is a weekly report from the SEC. Reference: digital asset regulation.
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