Legal Round-Up: What’s Happening in the US

Adam Berker

The 10th issue of our legal round-up.

The 10th issue of our legal round-up.

Last week in the U.S. started with the statement of U.S. Federal Reserve Chairman Jerome Powell, who said that he does not plan any crypto ban but underlined that stablecoins need to be more regulated.

Later, on October 1st, it came to the public that the Biden administration is looking into imposing bank-like regulation on companies that issue stablecoins, including making them obtain bank licenses. Furthermore, the administration plans to offer Congress a special-purpose charter that will regulate crypto companies issuing stablecoins.

Still, according to the Wall Street Journal, these are only expected actions from the administration, and final recommendations are expected to be included in the President’s Working Group Report on Financial Markets that will be published this month.

Following this news, on October 4th, the Securities Exchange Commission initiated an investigation against Circle Financial, a vital supporter of the USDC stablecoin.

Also, yesterday, Joe Bidden officially announced the U.S. will bring together 30 countries to stop “the illicit use of cryptocurrency.” The statement is mainly focused on strengthening cybersecurity by hardening critical infrastructure against cyberattacks, disrupting ransomware networks, and establishing clear road rules for all nations in cyberspace.

Nevertheless, the system may also include mechanisms for combating money laundering since it is one of the most important directions.

Moreover, it is said that the partnership will include countries from NATO and G7.

Taking into account the recent announcement and measures, Adam Berker summarizes that US officials are seeking to strengthen regulation of virtual currencies and oblige crypto companies to comply with US laws, regardless of the state of registration. However, it doesn’t say anything about a complete crypto ban.

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