Renata Szkoda – Page 2 – Global DCA

Author - Renata Szkoda

The Institutional Digital Assets and Crypto Regulation Symposium

Despite the significant drop in crypto's market capitalisation and some well-publicised coin failures, there is a widespread recognition that crypto, digital assets and blockchain are here to stay. That's why we have been asked by senior financiers from both the TradFi and crypto communities to organise a high-level gathering that brings the two sides together to discuss the future of crypto finance, the growing intersection between, and integration of, the two financial worlds and the impact of the coming wave of regulation, which is likely to redefine business models and practices. This is one event you won't want to miss. AND you can save 50% with the Global DCA discount code: CRYPTO5GDCA50 Click HERE to LEARN MORE

Digital Assets Compliance: ALM, Sanctions & Fraud

The American Conference Institute is hosting a forum on Digital Assets Compliance: AML, Sanctions & Fraud October 12-13 in New York City! Join an esteemed faculty of government officials, crypto companies, exchanges and blockchains, along with AML and sanctions experts as they address the most pressing developments and high stakes issues coming across your desk. Don’t miss out on the one forum that focuses on real-world compliance takeaways for your work after the event! AND you can save 10% with the Global DCA promo code: D10-999-GLOBALDCA. Click HERE to LEARN MORE

Down Range from Terra Luna: Stablecoin Strength Remains Unabated

Following the TerraUSD (UST) collapse and related events, the Global Digital Asset and Cryptocurrency Association (Global DCA) in collaboration with  Lisa Weingarten Richards and Maggie Sklar from Davis Wright Tremaine (DWT) published the report “Beyond Terra: An Assessment of Stablecoin Benefits and Policy” (“Beyond Terra”).   The report received positive support from many companies, thought leaders, and policymakers. It was also selected as a featured paper for this year’s DC Fintech Week, which showcases cutting-edge thought leadership and research from fintech academics, innovators, and others. On the other hand, the report was also subject to criticism from stablecoin skeptics, and may make points that are not in line with the stablecoin sections in the Financial Stability Oversight Council’s (FSOC) recent report: “Digital Asset Financial Stability Risks and Regulation.” This paper is a response to the critiques of the original publication, addresses some of the stablecoin rhetoric we find problematic in the FSOC report, and brings our information about true stablecoins up to date. Please click below to read the full response. CLICK HERE for the Full Response

Defining Global DCA and Self-Regulation

Click the video above to watch Global DCA's SRO Framework Roundtable (I) Design by 360 hre Click the video above to watch Global DCA's SRO Framework Roundtable (II) which includes group Q&A and full discussion. 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 learn more. CLICK HERE TO LEARN MORE CLICK HERE TO DOWNLOAD THE POWERPOINT

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…)