Regulation
BlockInsider Take: This Week in Crypto Regulation News
The CLARITY Act slips to September as Russia, Europe, and regulated crypto firms reshape the global regulatory landscape.
36d ago 4,280
BLOCKINSIDERLoadingThe CLARITY Act slips to September as Russia, Europe, and regulated crypto firms reshape the global regulatory landscape.
With the month of August upon us, one of the biggest questions surrounding crypto regulation is being answered - What’s up with the Clarity Act?
The answer, however, is rather disappointing as the US Senate prepares for its month-long recess. Nevertheless, while the US sits still for some time, other countries continue to progress in the regulatory department.
The Clarity Act vote has been officially postponed as the Senate recess is about to begin. The next opportunity for the bill to be voted upon will be after the Senate resumes on September 14.
Cryptocurrency advocates took this development as a deliberate attack on the process of giving digital assets their recognition. Some Senators continued to point out the very revealing flaws of the Act and why it should be studied further before being approved.
Senator Elizabeth Warren reiterated her stance on the Clarity Act, saying that it has still not solved the problem of corruption, of consumer protection, of national security, or of protecting our economy.
On the other hand, Senator Cynthia Lummis has been very vocal in her support for the Act, defending its ethics provisions. She also took the same opportunity to praise US President Donald Trump for supporting the bill.
Come September, most of the focus will be on the Clarity Act and how the US Senate handles it.
“No president in American history has voluntarily agreed to self-imposed, substantive ethics limits like President Trump has… (The bill) bans all federal officials, including the president of the United States, from issuing or sponsoring a digital asset for consideration, backed by real enforcement and real penalties,” stated Lummis.
In Russia, Putin signed the landmark national crypto legislation, establishing a formal regulatory framework for cryptocurrencies. The bill titled “On Digital Currency and Digital Rights” was first introduced on April 1 this year. It then cleared the second and third readings as well as received the Federation Council’s approval.
The law limits non-qualified retail investors to an annual purchase cap of roughly 300,000 rubles (about $3,800) per licensed intermediary after passing a knowledge test. However, qualified investors face no such limit.
One key highlight is that the law doesn't legalize crypto as a domestic payment method. This means consumers and businesses aren’t allowed to pay for everyday goods using cryptocurrencies. Nevertheless, it is a step in the right direction for crypto.
European financial watchdogs are similarly on a crusade to protect civilians from losses. European Securities and Markets Authority (ESMA) and France's AMF issued warnings on August 6 regarding an influx of impersonation scams.
As unlicensed crypto firms are deemed illegal, consumers are required to move their funds, and this moment is turned into an opportunity. Scammers impersonating these crypto firms push users directly into giving them their holdings.
Crypto market maker Wintermute affiliate Wintermute USA LLC, registered as a US broker on Friday, enabling regulated Wall Street trading. The SEC and FINRA approval now makes Wintermute capable of trading traditional equities and equity options.
It can also act as an Authorized Participant (AP) for exchange-traded products (ETPs), including those tied to digital assets, solely for its own proprietary account, and self-clear digital asset securities transactions for its own account.
In addition to Wintermute, Blockchain.com also secured a VASP custody license from the Cayman Islands Monetary Authority (CIMA). Co-CEO Lane Kasselman advocated for crypto regulation.
“We believe strong regulation is essential to the long-term development of digital assets, and these approvals further strengthen our ability to serve customers across the region,” Kasselman stated.
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