Renata Szkoda – Global DCA

Author - Renata Szkoda

Defining Global DCA and Self-Regulation

To enhance consumer and investor protection and facilitate innovation and industry development, Global DCA has launched an SRO Framework Project which will further explore and refine the organization’s nature and advancement of self-regulation. This exhaustive research, industry dialogue, and broader consultation is a necessary component of building governance institutions as governance institutions must not only reflect financial sector realities, but the broader economic, political, and social context of a given jurisdiction. Please click below to read the full response. CLICK HERE for the Full Response

Global DCA Response to Executive Order 14067 – The Benefits of Digital Asset Development

The Global Digital Asset & Cryptocurrency Association (“GDCA”) welcomes the opportunity to comment on Executive Order 14067 (the “EO”) that examines ways to ensure responsible development of the digital asset industry.1 GDCA applauds the process undertaken by the Treasury to solicit public engagement on this important topic, and welcomes the opportunity to be part of the ongoing dialogue. Given the breadth of the topics covered in the request for comment, GDCA will focus primarily on the role the Treasury Department can play in guiding the modernization of AML regulations. Please click below to read the full response. CLICK HERE for the Full Response

Anti-Money Laundering Guidance

The following overview of U.S. anti-money laundering regulation intends to provide an overview of the key AML requirements for a Global DCA member for educational purposes and is not intended as legal advice. While it is based on, and reflects, U.S. law, this overview can serve as a good basis to assess and review your AML policies and procedures since the U.S. has one of the strictest AML regimes in the world. The terminology used in this document is the U.S. Treasury’s Financial Crimes Enforcement Network (“FinCEN”) terminology, which is the bureau that administers the Bank Secrecy Act and other anti-money laundering (“AML”) laws in the U.S. Please CLICK below to read the full overview! CLICK HERE for the Full Overview

Bipartisan Senators Propose Regulatory Overhaul of Crypto Markets

On June 7, 2022, Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) unveiled their long-awaited bipartisan framework to overhaul the regulation of cryptocurrencies and digital assets. The “Responsible Financial Innovation Act,” seeks to provide certainty and clarity to the digital asset and blockchain industries, along with the agencies governing these industries. The proposed legislation, which has been in development since March 2022, would define most digital assets, including bitcoin and ether, as commodities, enact rules governing stablecoins, and provide the CFTC with exclusive jurisdiction over digital asset spot markets. Authored by Gaurav K. Talwar, Attorney at Law, McGonigle - Originally published in Read Full Article Here

Beyond Terra – An Assessment of Stablecoin Benefits and Policy

The collapse of the Terra/Luna blockchain (now known as Terra Classic) is a watershed moment for the digital assets industry and warrants level-headed reflection about the future of “stablecoin” products. Given the uptick in negative sentiment, this paper dispels harmful myths about the many promising varieties of stablecoins while acknowledging the specific weaknesses of the Terra/Luna protocol and its related UST “algorithmic” stablecoin. To respond to increased scrutiny around stablecoins in the wake of UST’s collapse, we recommend policies such as Self-Regulatory Organizations (SROs), Model Risk Management (MRM) discipline, and Sarbanes-Oxley-style certification for those stablecoins secured with high-quality reserve assets. We believe that this will improve information availability and transparency and therefore reduce, if not completely eliminate, the fear of any “run“ or “contagion“ on stablecoin assets. Please click below to read the full response. CLICK HERE for the Full Response

Global DCA Response – SEC Release: Further Definition of “As a Part of a Regular Business” in the Definition of Dealer and Government Securities Dealer

Global DCA writes to comment upon the Proposing Release because of its significance to the digital asset industry and the public. In the Proposing Release, the Securities and Exchange Commission (the “Commission”) proposes to redefine the term “dealer” in Exchange Act Section 3(a)(5) by the addition of proposed new Exchange Act Rule 3a5-4. The main focus of our letter is on the application of the expanded definition of “dealer” to entities that trade digital assets that are within the meaning of the term “securities.” In our view, the application of the dealer registration requirement to such entities is unworkable, and the Commission has completely underestimated the costs of such registration. In fact, the Commission has ignored the reality that its own conduct has made dealer registration impossible for entities that trade digital assets. While we will focus on the implications of mandatory registration for traders in digital assets, we observe, as a starting matter, that we believe that the Commission’s proposed expansion of the term “dealer” is inconsistent with the historical understanding of the term as used in the statute. (more…)

Global DCA Response – Response to “Money and Payments: The U.S. Dollar in the Age of Digital Transformation”

Global DCA writes to highlight our significant views and considerations about certain key aspects of the CBDC proposal given its possible influence on the digital asset industry, financial markets, and the general public. The GDCA welcomes the new exploration and public discussion of a CBDC by the Board. The GDCA strongly supports the Board’s continued study and exploration of CBDCs. We think that a successful implementation of a U.S. CBDC could have a huge consequence on the various aspects of our society, from strengthening the Fed’s ability to implement policy, to increasing access to financial services, to speeding and modernizing financial transactions. In the long term, a U.S. CBDC, or appropriate support of private digital currency development, is essential to maintaining U.S. dollar dominance and to preserving America’s role on the global stage. (more…)

Global DCA Response – CFTC Seeks Public Comment on FTX request for Amended DCO Registration Order

GDCA writes to highlight the significant public policy benefits that could result from the approval of FTX’s proposal to amend its DCO registration order to permit it to offer non-intermediated clearing of crypto derivatives directly for participants. We believe that approving FTX’s request would signal U.S. global leadership in regulating the digital assets industry, would bring conduct that is currently happening offshore and in unregulated exchanges onshore and into the regulatory ambit, and would lead to broader market access and inclusion, among other benefits. (more…)

CryptoConnection 2022 “Institutional Crypto Adoption – From Maverick to Mainstream”

While the past few years have focused on the potential around institutional adoption of crypto and digital assets, the past 6-12 months have seen first-movers give way to more traditional players as mainstream adoption and implementation has manifested value, benefits and opportunities to institutions. This year’s Crypto Connection Conference will explore the pathways for institutional crypto and broader digital asset adoption and the next wave of innovations, expectations and opportunities. Sessions will touch upon need-to-know trends and emerging subject areas including: Decentralized Finance, ETFs, NFTs and the Metaverse. Click HERE to REGISTER & LEARN MORE

Who’s Who In Crypto: Gabriella Kusz, Chief Executive Officer at Global Digital Asset and Cryptocurrency Association

What does crypto mean to you and what drew you to it? Crypto means transformation and evolution of the financial sector. As a professional who has spent a significant portion of her career ushering in financial sector transformation my ah-ha moment happened when I began to see the broader impacts of the industry as a first wave of the Fourth Industrial Revolution.  In my previous roles, I have supported countries in transitioning towards free-market economies or in diversifying their economies away from petrochemical industry reliance or in advancing transparency and accountability post-Arab Spring. Crypto is the tip of the iceberg and ensuring inclusive, participatory and representative engagement in our global financial future will require supporting broad financial sector transformation. What drew me to crypto was the opportunity to lend my global lessons learned, experience in capacity building and enhancing shared prosperity in an emerging and more impactful way. Read Full Article Here