The U.S. Federal Reserve listed a central bank digital currency (CBDC) as one of its “key duties” in a document presented to members of Congress. House Majority Whip Tom Emmer, a Republican from Minnesota, says Fed officials handed his staff a document earlier in the Congressional session titled “Key Duties of the Fed – Payment […]
The post U.S. Federal Reserve Lists a CBDC as One of Its ‘Key Duties,’ Warns Pro-Crypto Congressman Tom Emmer appeared first on The Daily Hodl.
The theories of high-profile crypto critic Elizabeth Warren on the threats of digital assets were reportedly debunked by a government insider during a House Financial Services Committee oversight hearing. FOX Business reports that testimony from a top official in the Treasury Department’s Terrorism and Financial Intelligence office dealt a serious blow to the US senator’s […]
The post Terrorism and Financial Intelligence Official Debunks Elizabeth Warren’s Anti-Crypto Narrative: Report appeared first on The Daily Hodl.
“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’” SEC Chair Gary Gensler iterated.
The United States securities regulator chief has hinted he would be open to a rebooted crypto exchange FTX — as long as its new leadership stays within the bounds of the law.
SEC Chair Gary Gensler’s comments were made in response to reports that Tom Farley, a former president of the New York Stock Exchange, is now in the running to buy the bankrupt cryptocurrency exchange founded by now-convicted fraudster Sam Bankman-Fried.
“If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’” Gensler said in an interview at DC Fintech Week on Nov. 8, according to CNBC. He added:
“Build the trust of investors in what you’re doing and ensure that you’re doing the proper disclosures — and also that you’re not commingling all these functions, trading against your customers or using their crypto assets for your own purposes.”
Farley is the CEO of cryptocurrency exchange Bullish, which was founded in 2021.
Fintech startup Figure Technologies and cryptocurrency venture capital firm Proof Group are the other two bidders in the mix to buy FTX, according to a Nov. 8 report by the Wall Street Journal, who cited people familiar with the matter.
3 FTX bidders in the Auction are:
— Sunil (FTX Creditor Champion) (@sunil_trades) November 8, 2023
Bullish - Crypto exchange run by Tom Farley
Figure Technologies - fintech start up and
Proof Group - crypto venture-capital firm
Three bidders will be leading a consortium
The winner could restart the exchange after its planned exit from bankruptcy next year, according to the WSJ report.
Meanwhile, in light of Bankman-Fried’s conviction, Gensler said the cryptocurrency industry is still rife with fraudsters and suggested more work needs to be done to keep them away from investors.
“Think about how many actors in this space are not complying right now with international sanctions and money laundering laws and are using crypto for nefarious or bad actions. He said, without naming individuals or companies. Gensler added:
“If it’s a non-compliant fraudster, why would we want them in our markets?”
Related: Could regulation have prevented Sam Bankman-Fried’s criminal verdict?
Despite the SEC’s crackdown on the cryptocurrency industry, U.S. representative Tom Emmer has previously called out Gensler and the securities regulator in December for missing the FTX, Terra-LUNA, Celsius and Voyager failures which collectively wiped out billions of dollars from cryptocurrency investors.
JUST IN: US Congressman Tom Emmer says SEC Chair Gary Gensler is as ineffective as he is incompetent.
— Watcher.Guru (@WatcherGuru) November 8, 2023
pic.twitter.com/6EDvRdOfCh
Emmer went as far to suggest Gensler helped Bankman-Fried gain a “regulatory monopoly” on the cryptocurrency industry prior to FTX’s collapse, but the statement wasn’t backed by any evidence.
The SEC is currently battling out lawsuits against Binance, Coinbase and Ripple over alleged securities violations and Grayscale for its application to convert its Bitcoin Trust product into a spot Bitcoin exchange-traded fund.
Magazine: The truth behind Cuba’s Bitcoin revolution — An on-the-ground report
Tom Emmer has been "making calls" to secure a nomination for the Speaker role, and it could be a boon for the crypto sector if he were to be voted in.
Crypto-friendly Republican Congressman Tom Emmer is pursuing a nomination to become House speaker, with the 62-year-old receiving endorsement from multiple lawmakers.
Congressman Patrick McHenry continues to oversee the position on an interim basis, following a first round of voting on Oct. 17 in which the Republican Party’s nominee for Speaker, Jim Jordan, failed to secure votes to overtake the role.
Emmer’s pursuit was initially highlighted on Oct. 20 by NBC News reporter Jake Sherman, who stated in a post on X (formerly Twitter) that Emmer “has told members of the House Republican Conference that he will seek the nomination for Speaker.”
“The Minnesotan is currently the No. 3 House Republican. He’ll immediately become the frontrunner in this race,” he added.
BREAKING -- TOM EMMER has told members of the House Republican Conference that he will seek the nomination for speaker.
— Jake Sherman (@JakeSherman) October 20, 2023
The Minnesotan is currently the No. 3 House Republican.
He'll immediately become the frontrunner in this race.
Outlets such as CBS News also reported that an unnamed source close to Emmer had confirmed that he was “making calls” in pursuit of a nomination.
As interim Speaker, McHenry lacks the authority to push legislation forward through in the House. As such, it has stalled the progress on various bills, including crypto-related ones, and highlighted the importance of voting in a new Speaker.
If Emmer were to become Speaker, the move would likely receive a warm welcome from members of the crypto community.
Emmer has spoken in favor of digital assets on many occasions and has a history of pushing back against the regulation by enforcement approach from the Securities Exchange Commission and its chairman Gary Gensler.
While he works to secure a nomination, Emmer has already received some backing for the move.
Congressman Brad Finstad released a statement on Oct. 20 supporting Emmer for the Speaker of the House role.
Related: Chamber of Digital Commerce opposes SEC’s overreach in Binance lawsuit
“From the day that I arrived in Congress, it has been a privilege to work alongside Tom and I have come to truly appreciate him as a mentor and as a friend,” he said, adding:
“The American people deserve a functioning Congress. It is my hope that my House colleagues can come together to get this election done, get the House back in order, and get back to working for the American people.”
Whether it’s across MN or across the country, @GOPMajorityWhip Emmer has the trust and respect necessary to lead. Proud to support him for Speaker.
— Congressman Brad Finstad (@RepFinstad) October 20, 2023
Read my full statement: https://t.co/9awEimquY3
Notably, Kevin McCarthy, a fellow Republican who was ousted from the Speaker role on Oct. 4, has also reportedly thrown his support behind Emmer.
“He is the right person for the job. He can unite the conference. He understands the dynamics of the conference. He also understands what it takes to win and keep a majority,” he said.
Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?
The United States Securities and Exchange Commission chief was asked whether the purchase of Pokemon trading cards is a security transaction and whether Bitcoin is a commodity.
Blamed for “kneecapping” the U.S. capital markets and slammed for dodging questions around Bitcoin and Pokemon cards, Gary Gensler appears to have had one hell of a grilling from Congress this week.
On Sept. 27, the United States Securities and Exchange Commission chief again found himself in front of lawmakers in a scheduled hearing to discuss his agency’s oversight of the markets.
Here are some of the highlights and lowlights of the hearing.
One of the more colorful analogies came from United States Representative Andy Barr, who accused Gensler of “kneecapping” the U.S. capital markets with regulatory red tape.
Barr referred to an old testimony from Gensler, where Gensler argued that the U.S. is the largest, most sophisticated and innovative capital market in the world and that it shouldn’t be taken for granted as “even gold medalists must keep training.”
“With all due respect Mr. Chairman, if the U.S. capital markets are a gold medalist, you are the Tonya Harding of securities regulations,” said Barr.
“You are kneecapping the U.S. capital markets with the avalanche of red tape coming out of your Commission.”
Barr is presumably referring to a scandal where U.S. ice skater Tonya Harding hired an assailant to attack her rival, Nancy Kerrigan, in the lead-up to the 1994 United States Figure Skating Championships and the Winter Olympics. Kerrigan ended up not competing in the U.S. championships.
Mr. Barr to Gensler:
— John Dickens (@johnLdickens) September 27, 2023
“If the US capital markets are a gold medalist, you are the Tonya Harding of securities regulation because you are kneecapping the US capital markets…”
pic.twitter.com/D9VOxtXAGC
Meanwhile, U.S. Representative Warren Davidson also ripped into Gensler, saying he hoped that the Biden administration would fire him.
“I wish the Biden administration would say you're fired,” said Davidson.
Davidson accused Gensler of pushing a “woke” political and social agenda and abusing his role as the SEC’s Chair.
Gary Gensler’s tenure at the SEC highlights two key problems.
— Warren Davidson (@WarrenDavidson) September 27, 2023
1) @GaryGensler problem
2) @SECGov structural problem
That’s why I introduced the SEC Stabilization Act to #FireGaryGensler and restructure the SEC. pic.twitter.com/Ud3giejKfZ
The U.S. representative added that he hopes the SEC Stabilization Act he introduced with U.S. Representative Tom Emmer could make that happen.
“You’re making the case for this bill [SEC Stabilization Act] every day you’re acting as the Chairman,” he concluded.
Gensler wasn’t given the chance to respond.
Asked by U.S. House Committee on Financial Services chair Patrick McHenry whether Bitcoin is a security, Gensler eventually relented, stating that Bitcoin didn’t meet the Howey Test.
“It does not meet the Howey test which is the law of the land,” Gensler said, implying that Bitcoin isn't a security.
McHenry then suggested Bitcoin must be a commodity, which Gensler avoided answering, saying the test for that is outside the scope of U.S. securities laws.
Gary Gensler says that #Bitcoin is NOT a security, but he refuses to say that it’s a commodity.
— The ₿itcoin Therapist (@TheBTCTherapist) September 27, 2023
He’s running out of time. When a powerhouse like BlackRock asks for a Bitcoin ETF you MUST deliver. pic.twitter.com/yhKcMzfzx6
Henry also suggested Gensler tried to “choke off the digital asset ecosystem” and refused to be transparent with Congress about the SEC’s connections with FTX and its former CEO Sam Bankman-Fried.
Gensler also wasn’t given the chance to respond to the claims made by McHenry.
U.S. Representative Ritchie Torres used his time to quiz Gensler about his interpretation of what constitutes an investment contract.
Torres put Gensler to the test by asking whether purchasing a physical Pokemon trading card constitutes a securities transaction.
I cross-examined @SECGov Chair Gary Gensler about the term 'investment contract', which is key to determining his authority over crypto.
— Rep. Ritchie Torres (@RepRitchie) September 27, 2023
Gensler struggled to answer basic questions like whether an investment contract requires a contract. His evasions are deafening and damning. pic.twitter.com/EJcZEHiKGL
“Suppose I was to purchase a Pokemon card. Would doing so constitute a security transaction?”
Gensler responded — “I don’t know what the context is” — before eventually concluding it isn’t a security if it is purchased in a store. Torres then asked:
“If I were to purchase a tokenized Pokemon card on a digital exchange via a blockchain, is that a security transaction?”
“I’d have to know more,” replied Gensler.
Related: Coinbase crypto lobbying campaign to focus on 4 swing states
Gensler then explained that it’s when the investing public can anticipate profits based upon the efforts of others — that’s the core of the Howey Test. Representative Torres called Gensler's "evasions" as "deafening and damning."
Meanwhile, among the back-and-forth cross-examinations between Gensler and U.S. Representatives, eagle-eyed observers noticed a Coinbase “Stand With Crypto” logo behind the SEC Chair.
BREAKING: Coinbase Stand with Crypto logo displayed at Gary Gensler hearing pic.twitter.com/IAwqyDEQea
— Miss Teen Crypto (@missteencrypto) September 27, 2023
The Coinbase-led initiative is a 14-month-long campaign that launched in August. It aims to push for cryptocurrency legislation in the U.S.
Coinbase also ran a “Stand with Crypto Day,” which took place in Washington, D.C. on Sept. 27 to advocate for better cryptocurrency innovation and policy.
Magazine: Binance, Coinbase head to court, and the SEC labels 67 crypto-securities: Hodler’s Digest, June 4-10
Congressman Tom Emmer is leading the reintroduction of a bill that aims to prevent the Federal Reserve from creating a digital dollar. Emmer says on the social media platform X that if it isn’t designed to emulate cash, then a central bank digital currency (CBDC) would dismantle Americans’ right to financial privacy while also emboldening […]
The post Tom Emmer Launches Anti-Surveillance State Act With 49 Republicans in New Push Against CBDCs appeared first on The Daily Hodl.
The bill would limit the Fed from issuing a CBDC which Tom Emmer called a surveillance tool that would "undermine the American way of life."
Legislation aimed at preventing “unelected bureaucrats in Washington” from issuing a central bank digital currency (CBDC) has been reintroduced by Representative Tom Emmer.
On Sep. 12, Emmer and 49 original co-sponsors revived the “CBDC Anti-Surveillance State Act” in the United States House of Representatives in a bid, they claim, to protect Americans’ right to financial privacy.
“The administration has made it clear: President Biden is willing to compromise the American people’s right to financial privacy for a surveillance-style CBDC,” Emmer, a Republican, said in a statement, adding:
“That’s why I’m reintroducing my landmark legislation to put a check on unelected bureaucrats and ensure the United States’ digital currency policy upholds our values of privacy, individual sovereignty, and free-market competitiveness,”
Emmer first proposed the bill to address CBDCs in January 2022. It was formally introduced to Congress in February 2023 with the aim of limiting the Federal Reserve from minting a programmable digital dollar which Emmer claims is a “surveillance tool that would be used to undermine the American way of life.”
Today, with 49 of my Republican colleagues, I reintroduced the CBDC Anti-Surveillance State Acthttps://t.co/mbke95IHBn
— Tom Emmer (@GOPMajorityWhip) September 12, 2023
The bill specifically prohibits the Fed from issuing a CBDC to individuals which Emmer says would stop it mobilizing into a retail bank able to collect personal financial data.
The bill also prohibits the central bank from using any CBDC to implement monetary policy.
Related: Congressman Tom Emmer says SEC chair Gary Gensler is a ‘bad faith regulator’
In March, Tom Emmer warned against the weaponization of money as the federal government seeks to maintain and expand financial control.
U.S. presidential candidate Robert F. Kennedy Jr. echoed the sentiment in May stating, “That is why I oppose CBDCs, which will vastly magnify the government’s power to suffocate dissent by cutting off access to funds with a keystroke,”
Other supporters of the CBDC Anti-Surveillance State Act include Senators French Hill, Warren Davidson, and Mike Flood.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
“Money should not be programmable by a central authority,” argues Republican Representative Warren Davidson.
United States Republican Representative Warren Davidson has spoken out against Central Bank Digital Currencies (CBDCs), urging Congress to ban them and criminalize its development.
In a July 23 Twitter post, Congressman Davidson accused the Federal Reserve of “building the financial equivalent of the Death Star," stating that CBDCs corrupts money into a tool for coercion and control, adding:
“Congress must swiftly ban then criminalize any effort to design, build, develop, test or establish a CBDC.”
Davidson’s comments came in response to a position advertised by San Francisco’s Federal Reserve Bank for a “senior crypto architect” to work on a CBDC project.
The Federal Reserve is building the financial equivalent of the Death Star.
— Warren Davidson (@WarrenDavidson) July 23, 2023
Central Bank Digital Currency (CBDC) corrupts money into a tool for coercion & control.
Congress must swiftly ban then criminalize any effort to design, build, develop, test or establish a #CBDC. pic.twitter.com/9JWiyj5H2f
Responding to a comment from a Twitter user, Davidson argued that money should be a stable store of value, and should not be programmable by a central authority.
“Sound money should facilitate permission-less peer-to-peer transactions,” he added.
The Federal Reserve has been actively researching the technology for a potential digital dollar but has not made any decisions on whether to issue one. The possibility of a digital version of the U.S. dollar has stirred controversy in the country and is expected to be a key talking point in the upcoming presidential election.
Congressman Davidson is also not alone in his concern over a potential Fed-controlled digital dollar.
On July 14, U.S. presidential candidate and Florida Governor Ron DeSantis said he would “nix any central bank digital currency” if he became president. In May, DeSantis signed a bill restricting the use of CBDCs in the state.
Related: IMF’s CBDC push gets feedback from the crypto community — ‘No one wants this’
Republican Tom Emmer has also been vocal in his warnings over state-controlled digital money. In March, the libertarian think tank said a programmable CBDC would be “easily weaponized” as a spying tool to “choke out politically unpopular activity.”
Emmer introduced the CBDC Anti-Surveillance State Act in February to “halt efforts of unelected bureaucrats in Washington, DC from stripping Americans of their right to financial privacy.” The bill was endorsed by Texas Senator Ted Cruz who introduced his own CBDC blocking bill in March.
Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?
Two crypto-friendly Republican lawmakers in the US introduced legislation this week that would remove Gary Gensler as Chair of the U.S. Securities and Exchange Commission (SEC). House Majority Whip Tom Emmer of Minnesota and Representative Warren Davidson of Ohio rolled out the “SEC Stabilization Act,” which, if passed, would axe Gensler and also establish another […]
The post Lawmakers Introduce Bill To Remove Gary Gensler As SEC Chair Following ‘Long Series of Abuses’ appeared first on The Daily Hodl.
On Friday Florida’s governor Ron DeSantis signed legislation that bans the use of a central bank digital currency (CBDC) in the state. Following the bill SB 7054 being signed into law, Florida’s Uniform Commercial Code (UCC) now explicitly forbids the use of a federally adopted CBDC as money. Florida Puts the Brakes on CBDCs The […]