News updates July 05, 2022
1. Cryptocurrency Crash Affects US States Tax Payment Plans via Bitcoin.
According to a recent report by Bloomberg, two states in the United States were moving forward with plans that would allow taxes to be paid in cryptocurrencies, but the concept has been shelved nearly everywhere else in the aftermath of the crisis that has wiped out tens of hundreds of billions of dollars in of crypto assets.
The article added that virtual currency tax payment systems for companies and people are being developed by the revenue departments in Colorado and Utah and are expected to be implemented over the next few months. Some practical issues still need to be worked out before the two Western states’ plans can go into effect.
Because of the sell-off, the global cryptocurrency market’s worth has fallen to less than $1 trillion from a high of $3 trillion in November. In only a few days, the value of Bitcoin has fallen by over 75 percent.
At least six other states have contemplated following Colorado and Utah’s footsteps, but after the fall, the chorus of experts, watchdogs, academics, and crypto critics are now urging legislators against putting the state’s finances and taxpayers in danger.
2. Bitcoin faces fresh pressure as US dollar crushes gold, risk assets
BTC/USD falls $1,000 while spot gold gives up 2% as USD strength intensifies, beating the year's previous peaks.
Bitcoin (BTC) hit daily lows on the July 5 Wall Street open as the U.S. dollar saw a violent surge higher.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD retreating to $19,281 on Bitstamp as the Independence Day long weekend concluded with a bump.
The pair had seen last-minute gains the day prior, these fizzling as the return of Wall Street trading was accompanied by USD strength laying waste to gains across risk assets and safe havens.
Bitcoin traded down $1,000 on the day, while spot gold shed over 2% and U.S. equities markets also fell. The S&P 500 was down 2.2% at the time of writing, while the Nasdaq Composite Index lost 1.7%.
The U.S. dollar index (DXY), on the contrary, hit 106.59, a level not seen since December 2002 and above previous breakouts from Q2 this year.
Bitcoin analysts thus waited for signs of a trend reversal to provide some relief to crypto markets.
3. Which are the Crypto-Friendly States in the U.S.?
Table of contents
1. Texas
2. California
3. Wyoming
4. Florida
5. Colorado
Nebraska
Final Word
The regulatory framework of cryptocurrencies is still a major point of discussion amongst lawmakers in the U.S. today, and different states are evaluating ways to implement flexible policies that address the validity of digital currencies. Several regions worldwide are showing little or no interest in having a formal discussion on cryptocurrencies. However, a few crypto-friendly states in the U.S. have chosen to become more involved in implementing digital assets in the current financial system.
Let's take a look at the states embracing cryptocurrencies as investment/payment tools.
Final Word
The widespread adoption of digital currencies is changing the current financial landscape. Nonetheless, issues like volatility and fraud hinder governments' acceptance rate of crypto. As a result, these barriers may affect regulatory activities and produce complex provisions.
On the flip side, decentralization, transparency, and security features make digital currencies valuable to various states. Despite being a relatively new industry, major U.S. states are still optimistic about the innovative concept. More importantly, regulatory activities help create an official yet friendly framework that guides businesses, retail, and institutional investors in the market, thereby, leading to a surge in more crypto-friendly states in the U.S.
4. Supreme Court’s Wrecking Ball Could Affect SEC Authority.
On Thursday, the US Supreme Court (SC) ruled that the EPA’s authority to regulate power plant emissions is limited. Experts said it raises concerns about other federal agencies and suggests the court may block subsequent attempts to write major regulations.
This recent ruling by the SC will have a huge impact on how the Securities and Exchange (SEC) regulates businesses and their emissions. This could mean that the SEC’s authority when it comes to regulating businesses is limited.
The data is required by the SEC to allow investors to make informed decisions,
Notably, the SEC is investigating Ripple for failing to register the sale of XRP as a security, which has resulted in a lawsuit.
The SEC’s attitude to cryptocurrencies is based on a broad interpretation of its own power, according to Kyvan Sadeghi, a partner at Zener & Block. Even outside the realm of financing, digital tokens seek to identify themselves as securities.
According to him, some trial courts have contested the SEC’s definition of what constitutes a security based on the SEC vs. WJ Howe Company case.
“The court has demonstrated a firm understanding of broad regulatory power,” Sadeghi explains. Should the Supreme Court decides on a crypto case, it may have little to do with cryptocurrencies and everything to do with the authority of regulators.
The recently passed legislation restricts the SEC’s power to regulate certain types of crypto, such as alternative digital assets distributed as part of a fundraising strategy that may be recognized as securities under existing law and considered as an offer.
5. 'Bitcoin Senator' Lummis Says Her Crypto Bill Leaves Most SEC Oversight Intact
Sen. Cynthia Lummis joined Decrypt's gm podcast to talk about how her crypto regulatory framework would divvy up oversight between the CFTC and SEC.
When Sen. Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced their bipartisan Responsible Financial Innovation Act at the start of June, it was widely seen as as policy that would undercut the U.S. Securities and Exchange Commission's jurisdiction over crypto.
But Lummis doesn't think the SEC stands to lose much oversight in her proposed crypto regulatory framework.
'Bitcoin Senator' Lummis Says Her Crypto Bill Leaves Most SEC Oversight Intact
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'Bitcoin Senator' Lummis Says Her Crypto Bill Leaves Most SEC Oversight Intact
Sen. Cynthia Lummis joined Decrypt's gm podcast to talk about how her crypto regulatory framework would divvy up oversight between the CFTC and SEC.
By Stacy Elliott
Jul 5, 2022
3 min read
Sen. Cynthia Lummis joined Episode 13 of Decrypt's gm podcast. Art by Grant Kempster.
When Sen. Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced their bipartisan Responsible Financial Innovation Act at the start of June, it was widely seen as as policy that would undercut the U.S. Securities and Exchange Commission's jurisdiction over crypto.
But Lummis doesn't think the SEC stands to lose much oversight in her proposed crypto regulatory framework.
"I really don't think that the SEC is going to lose regulatory control, I think they'll retain it when [the digital assets] are investment contracts," she told Decrypt on the latest episode of the gm podcast. "I think you'll have situations, under our definitions of ancillary assets, where you'll have a digital asset, say Bitcoin, that is the underlying asset that is regulated by the CFTC, but the investment contract in which it is contained is itself regulated by the SEC."
5. Russians banned from accessing Bitmex within European Union
Russian citizens or residents will no longer be able to access BitMEX services from the European Union after July 11, 2022.
Major cryptocurrency exchange BitMEX is working to increase compliance with the European sanctions against Russia by preparing to enforce major restrictions for its Russian users.
BitMEX is changing its restricted jurisdictions policy to be compliant with various restrictive measures of the European Union, Cointelegraph has learned.
The BitMEX crypto exchange notified a group of potentially affected users about the upcoming changes via email on Monday.
According to an email seen by Cointelegraph, Russian citizens or residents will no longer be able to access BitMEX services from the European Union after July 11, 2022. That means that such users will not be able to log into their account or access any services from the European Union, unless an “exception applies.”
The new restrictions do not apply to Russian citizens or residents accessing BitMEX services from the EU who are also residents in the EU or Switzerland. Dual citizens of the EU or Switzerland who reside outside Russia will also not be affected, the email notes.
“If you are a resident in the EU or Switzerland or a dual citizen of the EU or Switzerland and reside outside Russia, you may submit additional information to apply for an exemption and continue to access our Services from the EU,” the statement said.
The measure targets all types of traders, including persons trading on behalf of any legal persons, while they access BitMEX from the EU, as well as legal persons established in Russia, whose traders access the services from the EU.
