Crypto is going to change everything.
But it's early days, and nothing is promised. That's why we're here. Meet the Crypto Council for Innovation (CCI), with
@paradigm
,
@coinbase
,
@square
, and Fidelity
@DigitalAssets
.
Here's what we'll be doing...(thread)
1/ The
@SECGov
failure to respond to
@coinbase
’s petition for rulemaking is causing tangible harm to a major American industry.
A 🧵 on CCI’s recently filed amicus brief.
“Our findings are unambiguous.”
Former CIA Acting and Deputy Director
@MichaelJMorell
just published his independent report, whose ultimate findings debunk the common misperception that the Bitcoin market is rife with illicit activity. Here are the report’s highlights...
We're deeply concerned w/the infrastructure bill's problematic
#crypto
language. We want to thank all who took part in this legislative process and look forward to working w/members of Congress to clarify the provision’s broker definition.
Today, the EU Parliament voted in favor of measures that raise significant concerns for both individuals and the crypto ecosystem. If ultimately approved, these new measures will create fundamental issues for privacy, innovation, and access.
Full statement below.
We'll provide useful information - and dispel misinformation - for policymakers, regulators, and citizens around the world. We all want the same thing from technology: to create better lives for human beings. The road to making that happen is paved with high quality information.
President Biden has signed the EO recognizing the tremendous potential of crypto. It reflects the importance of crypto to the American people. We share the President’s commitment to responsible financial innovation and a more fair, inclusive economy. Full statement below.
This potential, like crypto itself, transcends borders. There's no state too rich, region too poor, village too remote to benefit from crypto.
That is why our scope is global. Wherever you are, our doors are open. Join us to unlock the promise of crypto!
CCI focuses its efforts on the three areas where crypto has the greatest potential to transform lives and livelihoods for the better, by creating: (1) stronger economic growth and more jobs, (2) a more inclusive, accessible financial system, and (3) enhanced privacy and security.
We’re honored to announce
@sheila_warren
as the new CEO of CCI. Sheila will lead us in demonstrating and communicating the transformational promise of crypto to policymakers, regulators, and people around the globe.
#FutureofInnovation
New poll out today: 1 in 7 voters hold
#crypto
- and say they are ready to vote for pro-crypto candidates.
Could crypto play an important role in the upcoming midterm elections? Let's dive in ⬇️
Entities across the government have started weighing in on Biden's Executive Order.
🧵Here's a thread of official statements (we'll update as they're released):
1/ The
@SECgov
has taken the novel & flawed interpretation that nearly all digital assets sold on the secondary market are “investment contracts” under federal securities laws, even though those transactions involve no ongoing contractual obligations.
6/ Without clear, consistent guidance and the ability to work within a regulatory framework that makes compliance possible, crypto, and the growing industry underlying it, will not achieve its full potential in the US.
5/ As the coalition of industry leaders, we think these issues are profoundly important not only for digital asset holders, but for the developers, operators, and investors building the crypto ecosystem.
We applaud the Biden administration for recognizing the tremendous potential of crypto in the executive order issued today. We're hopeful that the agency review leads to much-needed regulatory clarity for the industry and the American public.
Crypto represents the frontier of financial services and technology. The amendment to the infrastructure bill offered by
@MarkWarner
@senrobportman
and
@SenatorSinema
imperil the nation’s long standing leadership in this area.
We applaud the bipartisan leadership of
@SenToomey
and
@SenatorSinema
.
With 1 in 5 Americans holding or using crypto, greater regulatory clarity will support the industry's next stage of growth.
1/ We filed a comment with the US Department of Labor asking them to rescind Release No. 2022-01.
We are concerned it precludes 401(k) administrators from including crypto options in their plans based on a factually and legally flawed analysis.
🧵A thread with highlights:
We thank
@PatrickMchenry
,
@RepTimRyan
, and their colleagues for introducing the Keep Innovation in America Act, which will clarify digital assets language within the infrastructure bill. This is a welcomed first step to ensure America as a global and innovative leader in
#crypto
.
The crypto team here at CCI are thrilled to add a progressive industry innovator and game changer to our elite group of crypto leaders. Welcome
@Gemini
!
Today, we are pleased to announce “The ₿ Word,” a CCI initiative co-hosted by
@ARKInvest
,
@Square
, and
@paradigm
.
With input from the top leaders in the industry, this event will launch on July 21 to offer insights and real-world experiences on
#bitcoin
's various benefits.
We join concerned Americans and industry allies in thanking
@RonWyden
,
@SenLummis
, and
@SenToomey
for their bipartisan amendment to the infrastructure bill currently before the U.S. Senate.
The bill text now going to the House lacks the precise, technically accurate definitions of crypto that will help both industry and policymakers reach our mutual goals of growing the economy, broadening access to new financial tools, & increasing America’s ability to compete. 3/4
Two main conclusions:
1) Bitcoin’s use in illicit activity is much lower than previously believed. It recently found to be less than 1% of crypto activity.
2) Bitcoin and the blockchain ledger are underutilized and highly effective tools for crime fighting and intel gathering.
1/
#crypto
policy making the news today
The Crypto Council for Innovation commends the bipartisan leadership from
@SenLummis
and
@SenGillibrand
in this complicated and nuanced space
1/ The Honk Kong Securities and Futures Commission has just released the guidelines for Virtual Asset Trading Platform Operators, set to take effect on June 1. Let's dive into the key takeaways 🧵
These findings are a game changer for crypto and national security. Morell’s report concludes that blockchain ledgers and Bitcoin itself are more likely to be crime fighters, not crime creators. This is a complete reversal of the myth that crypto is “in the wrong hands.”
The Senate's procedural constraints prevented the body from adopting a bipartisan proposal for crypto as part of the infrastructure bill, a proposal the Treasury Department also endorsed. 2/4
2/ Regulation-by-enforcement thwarts meaningful participation in agency decision-making, deprives market participants of fair notice as to what is permissible, and chills innovation and investment in digital assets.
8/ Developers, the backbone of the digital asset economy, are responding to these calls and seeking much needed clarity. Since 2018, the share of global blockchain developers in the US has dropped from 40% to 29%.
1/
@SenWarren
and
@RogerMarshallMD
penned an op-ed about crypto and terrorist financing. We agree that terrorism and funding of terrorism need to be stopped. But the rest of the oped, as we flagged to the
@WSJ
, is riddled with factual inaccuracies.
10/ The SEC is trying to fit a square peg into a round-hole. This treatment leads to innumerable problems. In short, there is no viable path to fit blockchain network tokens into existing securities classifications.
At
#Mainnet2023
Senator
@gillibrandny
and
@sheila_warren
discuss market structure, national affairs, stablecoins, what's next for the crypto industry, and more. Video dropping tmw.
.
@SECGov
released proposed regulations on Registered Investment Advisors and custodians, referred to as the Safeguarding Rule. Some initial comments from our reading of this 400+ page behemoth.
"The struggle we are seeing to bring semiconductor manufacturing back to the US is foreshadowing our digital future if crypto is pushed offshore," said
@sheila_warren
@coinbase
has more on potential competitiveness and national security risks ahead:
As
@MichaelJMorell
says: “I hope that this study will help to advance a healthy, transparent, and fact-based dialogue between innovators and policymakers to help ensure that we maintain national security without hindering the adoption of potentially revolutionary technologies.”
3/ Unless companies can rely on clear, consistent guidance — and work within a regulatory framework that makes compliance possible — digital assets will not achieve their full potential in the US.
7/ Looking abroad, we see no one waiting for the US - in fact, jurisdictions like the EU and UK, among others, are actively courting the next wave of tech leadership by providing regulatory frameworks that seek to foster innovation while protecting market participants.
5/ Far from protecting investors, it exposes them to increased risk by pushing good and responsible actors out of the market, creating a vacuum to be filled by those least concerned with compliance.
14/ We think the context surrounding the SEC’s approach to digital assets should inform this Court’s analysis of the legal questions presented in this case.
4/ The failure to provide a clear path opens the door for bad actors & incorrectly paints the industry with one broad brush stroke. It also undermines the SEC’s mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
6/ As a result, the US risks losing influence over defining the standards, not to mention the national security implications if the next wave of global financial infrastructure evolves outside US borders.
11/ The proper approach is for the SEC to initiate rulemaking procedures that will provide fair notice, an opportunity to be heard, and will allow for judicial review in due course.
A cornerstone of America’s successful leadership in global technology has been that it doesn’t pick sides. It rows the boat, but doesn’t steer. The Warner-Portman-Sinema amendment ignores this history.
While I appreciate that my colleagues and the White House have acknowledged their original crypto tax had flaws, the Warner-Portman amendment picks winners and losers based on the type of technology employed. That’s horrible for innovation.
1/ Today,
@GavinNewsom
signed a Blockchain Executive Order that aims to promote responsible
#web3
innovation.
The approach looks collaborative, holistic and industry-friendly.
12/ Finally, the SEC’s failure to respond to Coinbase’s petition for rulemaking is part of a pattern that has stymied judicial review. The SEC neglected to act on all 5 petitions for rulemaking received seeking clarity on the Securities & Exchange Act’s application to crypto.
Reports this week about multi-million dollar Hamas crypto financing may have left a faulty impression.
@SignCurve
to
@btschiller
via
@CoinDesk
article titled:
Is Hamas Using Crypto to Attack Israel? We Don’t Know
13/ Seeing the bigger picture is critical: regulatory clarity is necessary to allow the US to recapture its position, foster innovation, and become an attractive destination for both new and established developers.
.
@LindaJeng1
: We are at an inflection point. What kind of digital economy will serve us the best? This is what Americans are asking. This is what the next Congress will look to address.
Thanks to
@WCOINetwork
and fellow panelist
@KMSmithDC
for an engaging evening in DC.
CCI is kicking off DcFintech Week with our oversubscribed Regulator Bootcamp: a hands-on experience with how the tech works. Thank you to those who travelled internationally to join us this morning at Georgetown and to all our volunteers!
1/
@SECGov
Chairman Gary Gensler has not testified before the Financial Cmte
@FSCDems
in 18 months! Thankfully, that clock resets tomorrow, and we expect a lot of questions about the commission’s approach to digital assets. Watch tomorrow’s hearing here:
Chair Gensler said ‘non-compliance’ is the industry’s ‘business model’.
But, there are companies that have repeatedly asked for clarity and were met with silence:
.
@bankofengland
governor - “Whatever happens over the next few months to crypto assets, I expect
#crypto
technology and finance to continue.” Cunliffe said. “It has the possibility of huge efficiencies and changes in market structure via
@business
👇
1/ Crypto is global, and nobody is waiting around for the US to land the plane. Here, our roundup 📷of global activity (trying again after some glitchy twitter activity)
"50-60% of
#bitcoin
's total hash rate was based in China and has now left...
This means the reliance on coal in China has been eliminated, while the grids in the U.S. are much more renewable."
@nic__carter
debunking "
#bitcoin
wastes energy."
#TheBWord
.
@sheila_warren
: The good news is that policymakers we’ve met know the bad actors in the headlines are not the industry as a whole. In DC, there is an openness to learning and an understanding that this industry moves fast - there is constantly something coming.
@Kr00ney
@Mclader