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Russia Struggles, America competes, SEC Stands Firms: Law Decoded

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  • Following the blanket ban on crypto in Russia, it looks like the Ministry of Finance was ready with the crypto regulatory framework which interestingly contradicts Russia’s Central Bank prohibitive drive.
  • After studying 3,000 long pages of the new America COMPETES Act, Crypto experts have found a clause that gives the Treasury Department power to bypass current checks and the logic of the left process to order “special measures” against certain financial transactions.
  • The U.S. Securities and Exchange Commission again rejected another spot ETF last week. Although, it did not come as a shock keeping in mind its previous stances on spot ETF.

Crypto experts after examining around 3,000 pages of the latest America COMPETES Act, get to a clause that could license the Treasury Department to bypass existing checks and the logic of the left process to order “special measures” against certain financial transactions.

There is an absence of unity within the power system which is often seen as the conclusion of the collision of the conventional political institutions and the crypto space. 

Digital assets come from a space that follows no straightforward rulebook or is operated by a centralized consensus. The absence of a politically coordinated party had led to many different emerging voices and opinions.

After the central bank of Russia tried to promote a strict stance on crypto, last week a rare policy debate flared up in the country. This is rare however as such public debates are not seen on such issues.

Russia Among The Clash Of Opinions On Crypto Ban 

On January 21, 2022, the central bank of Russia called for a blanket ban on crypto. It seems the Ministry of Finance was also working on the crypto regulatory framework simultaneously whose beliefs contradict the prohibitive drive of Russia’s Central Bank.

The ministry suggested the use of the traditional banking system’s rails for facilitating the crypto payments, at the same time classifying investors as qualified or unqualified and launching strong financial surveillance mechanisms. Former President and Prime Minister Dmitry Medvedev also lent their support to the regulation instead of a blanket ban on cryptocurrency activities. 

In conclusion, the Russian Government is contemplating how to deal with the power of the digital asset space. 

ALSO READ – HARMONY CONFIDENT BITCOIN, ETHEREUM BRIDGES WILL TAKE IT TO “NEXT LEVEL”

Tailing with Must-pass Bills

The strategy of attaching crypto- hostile provisions to huge big must-pass bills can act as another weapon choice for crypto opponents. The tactic was first tested last year with the addition of problematic digital asset broker definition to the infrastructure bill.

Crypto experts after examining around 3,000 pages of the latest America COMPETES Act, get to a clause that could license the Treasury Department to bypass existing checks and the logic of the left process to order “special measures” against certain financial transactions. These transactions also include transactions executed using cryptocurrency.

These measures include inflicting outright prohibition or surveillance on financial institutions to render certain sets of products or services. 

SEC Rejects Spot BTC ETF

The U.S. Securities and Exchange Commission’s rejection of another spot ETF last week does not come as a shock to everyone familiar with the space, as its stance against change-traded funds that render direct exposure to digital currencies is well-known.

The extension of the review period of another ARK 21 Shares Bitcoin ETF, BTC-related product is also not shocking. The regulator prefers to push such deadlines farther away as the existing rules permit. 

However, some analysts perceive it as the extension of the executive branch’s broader crypto regulatory strategy instead of a single agency’s policy.

Eric Balchunas, Bloomberg senior ETF analyst, sharing his opinion on Twitter said that the SEC’s take on spot Bitcoin ETF perfectly collides with the rumors citing the Biden administration’s upcoming executive order which will show digital currencies as a threat to national security. 

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