Crypto Regulatory Developments: Congressional Review Act, DOJ Charges, and More
From May 5 to May 20, 2024, several crucial regulatory actions and legal developments impacting the crypto industry have unfolded worldwide. These updates range from the passing of a Congressional Review Act resolution to charges filed by the U.S. Department of Justice.
Congressional Review Act Resolution
According to a16z crypto, the House of Representatives and the Senate passed a bipartisan Congressional Review Act resolution that would undo the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121. The SAB 121 directed firms that safeguard consumer crypto to track the funds as liabilities on their balance sheets. For the resolution to take effect, the President must sign it.
Department of Justice Charges
The Department of Justice (DOJ) charged two brothers with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The charges are in connection with a scheme to exploit a flaw in MEV-Boost, an open-source software that enables validators to outsource block production. The exploit allowed the brothers to fraudulently obtain $25 million worth of cryptocurrency.
Closure of Cryptocurrency Mining Facility
President Joe Biden ordered the closure of MineOne, a cryptocurrency mining facility majority-owned by Chinese nationals and located near the Warren Air Force Base in Wyoming. The President believes it poses risks to U.S. national security.
Commodity Futures Trading Commission Actions
The Commodity Futures Trading Commission (CFTC) settled charges against Falcon Labs for failing to register with the CFTC as a futures commission merchant (FCM). This is the CFTC’s first action against an unregistered FCM that inappropriately facilitated access to digital asset exchanges.
Other Developments
Other notable developments include actions by the Department of the Treasury, the Securities and Exchange Commission, and the White House. Internationally, there have been developments in Canada, France, Indonesia, the Netherlands, the Philippines, and the United Kingdom, as well as at the Bank for International Settlements.
The above information serves as a primer on recent events impacting the crypto industry. The crypto regulatory landscape is complex and rapidly evolving, so staying informed is crucial for anyone operating in this space.