Monat: Mai 2024

• 60-38 in the Senate voted in favour of overturning the SEC rule.
• Bipartisan support signals a potential shift in crypto regulation.
• Presidential veto possible.

In a landmark decision, the US Senate has voted to overturn a key Securities and Exchange Commission (SEC) rule that barred regulated financial firms from holding Bitcoin and other cryptocurrencies.

The legislation, known as H.J. Res. 109, previously passed in the US House with bipartisan support and the Senate’s support signals a potential shift in the regulatory landscape for digital assets in the United States.

Bipartisan support for H.J. Res. 109 reversal

The decision to overturn the SEC’s Staff Accounting Bulletin (SAB) No. 121 garnered significant bipartisan support in both the House and the Senate.

The rule, which had been in effect for two years, prohibited regulated financial institutions from holding cryptocurrencies.

However, lawmakers have moved to invalidate this restrictive regulation with a vote of 60-38 in the Senate and a 228–182 vote in the House.

Supporters of the legislation argue that allowing regulated firms to hold cryptocurrencies will provide consumers with more options and opportunities in the rapidly evolving digital asset market. They contend that regulated institutions are well-equipped to handle the risks associated with cryptocurrency custody, given their existing compliance frameworks and security protocols.

Potential presidential veto

After the overwhelming support for overturning the SEC rule in Congress, the legislation now faces its final test on the desk of US President Joe Biden.

While the White House has indicated that the measure may be vetoed, citing concerns about disrupting the SEC’s work to protect investors in crypto-asset markets, proponents remain hopeful that Biden will recognize the importance of allowing regulated firms to engage in cryptocurrency custody.

Critics of the SEC’s rule argue that it stifles innovation and hampers the ability of financial institutions to meet the growing demand for cryptocurrency services. They point to the recent approval of spot Bitcoin Exchange Traded Funds (ETFs) by the SEC as evidence of the increasing mainstream acceptance of cryptocurrencies and the need for regulatory flexibility in this rapidly evolving space.

Senate decision met with enthusiasm

The decision to overturn the SEC rule has been met with enthusiasm by industry stakeholders, who see it as a positive step towards greater institutional adoption of cryptocurrencies. Many believe that allowing regulated financial firms to hold cryptocurrencies will help to legitimize the asset class and attract more institutional investors.

However, some industry experts caution that regulatory clarity is still needed to ensure the long-term stability and growth of the cryptocurrency market. They emphasize the importance of striking a balance between innovation and investor protection to foster a healthy and sustainable ecosystem for digital assets.

The post US Senate votes to overturn SEC rule, allowing regulated firms to hold Bitcoin appeared first on CoinJournal.

• The AMF has blacklisted Bybit since May 2022 due to regulatory infractions.
• French investors urged to prepare for potential service halt.
• Besides France, Bybit faces global scrutiny and it has already pulled out of Canada and UK.

The French Securities Regulator, Autorité des Marchés Financiers (AMF), has issued a renewed cautionary notice to investors regarding the cryptocurrency exchange Bybit.

The warning stems from Bybit’s non-compliance with French regulations, specifically its failure to register as a digital asset service provider (DASP), rendering its operations illegal in France.

Possible abrupt exit of Bybit from France

Investors are urged to exercise vigilance and prepare for the potential abrupt cessation of Bybit’s services in France.

The AMF emphasizes that it retains the authority, as per the Monetary and Financial Code, to pursue legal action, including blocking Bybit’s website.

Furthermore, retail investors are advised to take preemptive measures to ensure continued access to their assets, should the platform become inaccessible.

This cautionary stance mirrors similar regulatory actions taken against Bybit globally. In March, Hong Kong’s Securities and Futures Commission (SFC) categorized Bybit as an unlicensed exchange and added it to its list of suspicious platforms. This move by the SFC reflects concerns regarding Bybit’s lack of compliance with licensing requirements.

Bybit’s regulatory woes

Although Bybit has applied for licenses in countries like Hong Kong, its history of regulatory challenges extends beyond France. Last year, the exchange withdrew from both Canada and the United Kingdom, citing regulatory pressures. These exits underscore the significant regulatory hurdles Bybit faces in various jurisdictions.

For French investors, the AMF’s warning serves as a critical reminder to prioritize regulatory compliance and due diligence when engaging with cryptocurrency exchanges.

Bybit’s illegal operation in France raises concerns about investor protection, highlighting the importance of adhering to regulatory frameworks.

In light of these developments, French investors are advised to exercise caution and consider alternative platforms that comply with local regulations.

Additionally, staying informed about regulatory updates and heeding warnings from financial authorities can help mitigate risks associated with unlicensed cryptocurrency exchanges like Bybit.

The post French securities regulator, AMF, issues warning on Bybit appeared first on CoinJournal.