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CRYPTO-SKEPTIC AND SEC BOSS CRENSHAW AXED FROM SENATE RENOMINATION

Outgoing Securities and Exchange Commissioner Caroline Crenshaw will not be renominated to her position following a decision by the Senate Banking Committee. The hearing to nominate Crenshaw and Gordon Ito to the Financial Stability Oversight Council, previously scheduled for Wednesday, December 17, was canceled, according to multiple reports.

The FSOC is a financial system monitoring agency established in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

No room for Crenshaw

News of Crenshaw’s canceled vote came after rising opposition to her renomination to the U.S. SEC. Crypto industry leaders and policymakers criticized Democratic senators for attempting to push Crenshaw’s hearing through without proper vetting.

Coinbase CEO Brian Armstrong said blockchain proponents would closely watch the eventual vote, and the outcome would likely impact future StandWithCrypto donations to politicians.

Crenshaw will be remembered as an anti-Bitcoin and crypto-skeptic SEC Commissioner throughout her tenure at the agency. She infamously voted against approving spot Bitcoin (BTC) exchange-traded funds, and frequently aided soon-to-be ex-chair Gary Gensler’s staunch hostility toward blockchain businesses.

Crenshaw’s removal from consideration clears the way for President-elect Donald Trump to nominate a new SEC commissioner, potentially shaping the agency’s leadership with officials aligned with his pro-crypto agenda.

Trump has so far pitched former SEC regulator Paul Atkins for SEC chair, pending Senate confirmation. Atkins, a pro-Bitcoin entrepreneur and vocal crypto supporter, would replace Gensler who has announced his resignation effective on Trump’s inauguration.

Last month, fellow Dem SEC Commissioner Jaime Lizárraga also announced plans exit the federal watchdog, citing a need for more family time. The Dem-SEC exodus could hand over agency reins solely to the Republican party. Only GOP Commissioners Hester Peirce and Mark Uyeda remain, with Atkins likely to join soon.

@ Newshounds News™

Source:  Crypto News

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UK PLANS TO PROHIBIT PUBLIC CRYPTO OFFERINGS, EXCEPT VIA EXCHANGES

Today the UK’s Financial Conduct Authority (FCA) published a discussion paper on regimes for crypto-asset admissions and disclosures and market abuse regimes. It also reiterated the UK’s timetable for crypto legislation, targeting 2026. A key feature of the admission and disclosures regime is that public offerings of crypto assets will be banned, with two exceptions.

New public offerings of crypto-assets will only be allowed if via a regulated cryptocurrency exchange, or by restricting the offering to qualified investors. The aim is to put the onus on cryptocurrency exchanges to perform sufficient due diligence on offerings and to have a process for rejecting listings for trading. Exchanges may be subject to prudential requirements.

Legislation is needed because currently UK oversight of crypto only applies to anti money laundering and marketing.

Regarding the disclosures, the FCA is keen to avoid making it so extensive that it imposes disproportionate costs on the preparer. They also note that while consumers need comprehensive information, the quantity shouldn’t be so excessive that it obscures critical details. The paper provides a list of the expected contents.

The regulator is keen to encourage issuers to provide some forward looking statements. While these will carry some liability, it doesn’t want to set the bar too high.

 Hence, in the UK there’s a concept of protected forward looking statements (PFLS), where statements that turn out to be untrue only attract liability if the consumer can establish that the issuer knew the statement was untrue or reckless as to the facts.

The UK has a National Storage Mechanism (NSM), a free online repository of regulated information, including prospectuses from issuers. Information related to crypto-assets admitted to trading on crypto exchanges would be included in the NSM.

Preventing market abuse

Additionally, the paper covers steps to address market abuse. It recognizes that existing traditional market abuse regimes may not be as easy to implement for crypto because of market fragmentation, cross border elements, and in some cases, the lack of a clear issuer (such as Bitcoin).

Nonetheless, legislation will aim to prohibit insider dealing, require the disclosure of inside information by crypto exchanges and prohibit market manipulation.

Inside information is sensitive information that could move crypto prices and hence needs to be disseminated as soon as possible to prevent a few people from taking advantage.

However, the listing of a crypto-asset without the issuer’s request can be problematic. The FCA hopes to address this by putting the onus on the entity requesting the crypto listing to make sure inside information is disseminated promptly. 

For traditional markets, the UK has a regulated information service, which is a centralized announcement service, and it is considering using this for crypto.

For the purposes of the paper, crypto assets include cryptocurrencies and stablecoins. However, a separate consultation is expected on fiat-referenced stablecoins in the future.

There’s a three step process of discussion paper, followed by a consultation and then the final policy stance. The Bank of England and FCA issued a joint discussion paper on stablecoins in late 2023.

@ Newshounds News™

Source:  Ledger Insights

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Source:  Seeds of Wisdom Team RV Currency Facts

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