Home News Law Decoded: Infrastructure woes and benevolent punishments, Sept. 27–Oct. 3

Law Decoded: Infrastructure woes and benevolent punishments, Sept. 27–Oct. 3

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The Biden administration and the Federal Reserve are looking into stablecoin regulation while House Democrats fight over the infrastructure plan.

This week, politicians and regulators in the United States have once again snatched a large portion of the attention. The infrastructure bill’s cryptocurrency-related measures, a speck in the omnibus legislation’s sandbox, had all eyes on the House of Representatives vote, which never materialised. The bill, however, appears to be on the verge of becoming law.

We also learnt from Federal Reserve Chair Jerome Powell’s testimony before Congress that the Fed does not see the need for a broad ban on cryptocurrencies a la China. Preferring instead to focus on tighter regulation of stablecoins. The latter storey has been circulating for some time. And it now looks that President Joe Biden and his team have decided how to deal with stablecoins.

This newsletter is presented in a condensed form below. Register for the full newsletter below to get a complete overview of policy changes over the previous week.

The infrastructure bill has come to a halt

The politics surrounding the Infrastructure Investment and Jobs Act of 2021 is delaying passage of this enormous bundle of spending and tax-gap-closing provisions. With the crypto-relevant clauses falling into the latter group.

Progressives will not support the measure unless the moderates promise adequate financing for social programs in the concurrent budget reconciliation bill. But President Biden will make every effort to get the bill passed. Otherwise, he risks ending his first year in office with a lack of legislative accomplishments.

The vote is likely any day now. And Republicans will have no way of standing in the way if Democrats can agree inside.

CFTC slaps Kraken’s wrist

Kraken has already received a $1.25 million penalty from the Commodity Futures Trading Commission. For selling margined retail commodity trades without appropriate registration. Then, in a concurring statement, Commissioner Dawn Stump added to this view. Admitting that the present CFTC guideline falls short of providing clarity to businesses that support digital asset retail commodities trading.

Central bank currencies loom large

Following the approval of the project by the country’s Federal High Court, Nigeria is on pace to launch its digital currency, the eNaira, any day now. Meanwhile, global financial organisations such as the Bank for International Settlements are working to finalise the architecture and basic operational principles for central bank digital currencies throughout the world. For example, a BIS paper examines the compatibility of future digital monetary systems with their conventional equivalents.

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