Lawmakers Crack Down on Cryptocurrency

by: The Knowledge Group

July 08, 2019


If you’ve been watching this space, you know U.S. lawmakers on both sides of the aisle are taking a hard look at Facebook’s venture into cryptocurrency and how it could disrupt national currencies. Rep. Maxine Waters (D-CA) and other House Finance subcommittee leaders have officially asked Facebook to put its Libra digital currency project on hold, and Senate banking chair Mike Crapo (R-ID) has called for a hearing on the potential privacy risks.

International Concern

Britons may soon be banned from investing in derivatives and exchange-traded notes tied to cryptocurrencies. The Financial Conduct Authority regards digital assets as risky, and potentially harmful to small investors.

The Reserve Bank of India has reportedly considered making dealing in cryptocurrencies a crime. India has seen several proposals to regulate blockchain since 2017 when Prime Minister Narendra Modi established the first committee to consider regulation.

Cryptocurrency and the SEC

Financial institutions find cryptocurrencies intriguing for its potential role in the future of money. Yet the rapid rise of the cryptocurrency markets has presented channels for criminal acts and unusual investment risks.

The Securities and Exchange Commission is, therefore, watching cryptocurrency markets. Businesses can look forward to new regulatory structures and challenges, given the SEC’s high-profile moves.

Join The Knowledge Group from noon until 1:30 pm on Wednesday, July 17, 2019, for our live webcast on cryptocurrency and the SEC

Among many other facets of this timely topic, we’ll examine:

  • The SEC’s analysis of digital currency under a Framework for Investment Contract.
  • Case law.
  • The SEC’s no-action letters.
  • Further possible frameworks for the regulation of cryptocurrencies.

If you are a securities lawyer or federal criminal lawyer, a cryptocurrency company, fraud or risk analyst, or if you work in any aspect of financial compliance, join our session on cryptocurrency and the SEC.