Launchy Regulatory Roundup #12 - Every Trump Promise on Crypto in the 2024 Election

Key Crypto Congressional Legislation in 2024 | XRP ETF

Marco Manoppo & Muhammad Reynaldi Ariananda Arkiang
November 03, 2024

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Good Morning.

Welcome to our 12th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

As the 2024 US elections approach, digital asset policy is becoming a hot topic. Candidates like Donald Trump are making big promises to the crypto community, and it’s important for pro-crypto voters to understand the key legislative proposals on the table.

In Today's Edition:

Headline: Every Trump Promise on Crypto in the 2024 Election 🔎
Global Legal Roundup: Immutable v SEC, XRP ETF, Coinbase’s lobbying 🚨
Case Study: Key Crypto Congressional Legislation in 2024 🔑

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HEADLINE

Every Trump Promise on Crypto in the 2024 Election

Image: FT

State of play: As the 2024 election ears, Donald Trump made a last-minute appeal to crypto voters by reiterating campaign promises on social media while criticizing Vice President Kamala Harris’ stance on cryptocurrency.

Donald Trump is making bold promises to attract crypto voters as he campaigns for the 2024 presidency. Here’s a rundown of his key commitments regarding cryptocurrency:

Ending the Crypto Crackdown: Trump vows to reverse what he describes as the Democratic “war on crypto,” opposing the creation of a Central Bank Digital Currency (CBDC).
Promoting U.S. Bitcoin Mining: He wants all Bitcoin to be mined in the United States, despite experts noting that the decentralized nature of Bitcoin mining makes this goal impractical.
Addressing the National Debt: Trump has suggested that cryptocurrencies could help reduce the U.S. national debt, proposing the establishment of a Bitcoin reserve. However, many experts are skeptical about the feasibility of this idea.
Firing SEC Chair Gary Gensler: He promises to replace Gensler to create a more crypto-friendly regulatory environment, though the process could be complex and time-consuming.
Stopping CBDC Development: Trump has expressed strong opposition to any U.S. CBDC, labeling it a threat to financial privacy.
Pardoning Ross Ulbricht: He pledges to commute the sentence of Silk Road founder Ross Ulbricht on his first day in office, citing concerns over his lengthy sentence for nonviolent crimes.
Creating a Crypto Advisory Council: Trump plans to establish a committee tasked with developing supportive regulations for the crypto industry, aiming for a regulatory framework that encourages innovation.
Ensuring Self-Custody Rights: He intends to enshrine the right to self-custody for crypto users into federal law, aligning with proposed legislation from Republican Senator Ted Budd.

What’s Next: If elected, Trump's promises to the crypto community will be tested against the realities of governance and regulatory frameworks.

Why it Matters: Trump's proposals reflect a significant shift in how political candidates are engaging with the growing cryptocurrency market.

Our Take: While Trump's promises resonate with many in the crypto community, scepticism remains about their feasibility. The complexities of regulation, market dynamics, and the decentralized nature of crypto present challenges.

GLOBAL LEGAL ROUNDUP

North America:

🇺🇲 Coinbase pours $25M more into Fairshake.
🇺🇲 NYSE seeks to list Grayscale crypto index ETF.
🇺🇲 21Shares files Form S-1 with SEC for spot XRP ETF.
🇺🇲 Judge pushes Tornado Cash co-founder trial to April 2025.
🇺🇸 Coinbase finds over '20 examples' of FDIC telling banks to avoid crypto.
🇺🇲 Immutable pledges to fight after SEC ‘sprayed and prayed’ Wells notice.
🇺🇲 SEC cost crypto firms $426M under Gensler — Blockchain Association.
🇺🇲 FTX settlement with Bybit brings the conclusion of epic liquidation closer.

Europe:

🇷🇺 Has Russia really ‘legalized’ cryptocurrency mining?
🇮🇹 Italy’s finance minister defends 42% crypto capital gains tax plan.

Asia:

🇦🇺 Australian police’s ‘new powers’ lead to $142.6K crypto seizure.
🇭🇰 Hong Kong considering tax concessions for crypto investments.
🇭🇰 DWF Labs considering legal action against former partner Eugene Ng.
🇭🇰 Hong Kong court rules for investors in JPEX cryptocurrency fraud case.

CASE STUDY

Key Crypto Congressional Legislation in 2024

State of play: As the 2024 U.S. elections approach, digital asset policy has emerged as a significant issue for pro-crypto voters. Here’s a summary of key legislation currently under consideration:

Financial Innovation and Technology for the 21st Century Act (FIT21)😀

Introduced by Rep. Glenn Thompson, this bill aims to create a comprehensive regulatory framework for digital assets, defining criteria for decentralization and granting the SEC authority over assets deemed securities.

It passed the House in May 2024 and awaits Senate approval.

CBDC Anti-Surveillance State Act:

Proposed by Rep. Tom Emmer, this bill seeks to prohibit the Federal Reserve from creating a consumer-facing CBDC and restricts its use for monetary policy.

It passed the House in May 2024 and is pending a Senate vote.

Clarity for Payment Stablecoins Act of 2024:

A re-introduction by Rep. Patrick McHenry, this act aims to regulate U.S. dollar stablecoins and allows issuers under $10B in market cap to be regulated at the state level.

Similar legislation was proposed by Senators Lummis and Gillibrand in April 2024.

Digital Asset Anti-Money Laundering Act:

Introduced by Senator Elizabeth Warren, this controversial bill mandates that digital asset providers comply with the same reporting requirements as traditional financial institutions.

It has faced significant opposition and has not passed in Congress.

Financial Technology Protection Act of 2023:

Proposed by Rep. Zachary Nunn, this bill aims to combat illicit finance in emerging technologies and has passed the House, now awaiting Senate consideration.

Equal Opportunity for All Investors Act:

This bill, introduced by Rep. Mike Flood, seeks to lower barriers for individuals to qualify as accredited investors through a knowledge test.

It passed the House but has not yet moved forward in the Senate.

Blockchain Regulatory Certainty Act:

Submitted by Rep. Tom Emmer, this act aims to exempt blockchain developers from traditional financial reporting requirements.

It has been approved by the House Financial Services Committee but has yet to pass in Congress.

Keep Your Coins Act: Introduced by Rep. Warren Davidson, this bill aims to protect consumers' rights to use self-custodial wallets.

Its future remains uncertain as it seeks broader support.

Our Take: Crypto voters must stay engaged and advocate for supportive policies, as the outcomes of these bills will shape the future of digital assets in the U.S.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

Rettig & Chervinsky’s read on useful and fair crypto token.
Paul Grewal’s summary on Coinbase’s amicus brief vs SEC.
OFR’s article on the risks of capital withdrawal and potential "runs" on PoS.

🚨 BREAKING: Trump issues statement condemning the unjust execution of Peanut the Squirrel 🐿️ 🥜
"If Peanut could have told them he was from Mexico, they would have sent him on his way and given him a hotel room and a $500 gift card to Buddy Squirrel." 💀
— Autism Capital 🧩 (@AutismCapital)
4:16 PM • Nov 2, 2024

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.