Crypto Regulatory Developments: Congressional Review Act, DOJ Charges, and More

From
May
5
to
May
20,
2024,
several
crucial
regulatory
actions
and
legal
developments
impacting
the
crypto
industry
have
unfolded
worldwide.
These
updates
range
from
the
passing
of
a
Congressional
Review
Act
resolution
to
charges
filed
by
the
U.S.
Department
of
Justice.

Congressional
Review
Act
Resolution

According
to
a16z
crypto,
the
House
of
Representatives
and
the
Senate
passed
a
bipartisan
Congressional
Review
Act
resolution
that
would
undo
the
Securities
and
Exchange
Commission’s
(SEC)
Staff
Accounting
Bulletin
(SAB)
121.
The
SAB
121
directed
firms
that
safeguard
consumer
crypto
to
track
the
funds
as
liabilities
on
their
balance
sheets.
For
the
resolution
to
take
effect,
the
President
must
sign
it.

Department
of
Justice
Charges

The
Department
of
Justice
(DOJ)
charged
two
brothers
with
conspiracy
to
commit
wire
fraud,
wire
fraud,
and
conspiracy
to
commit
money
laundering.
The
charges
are
in
connection
with
a
scheme
to
exploit
a
flaw
in
MEV-Boost,
an
open-source
software
that
enables
validators
to
outsource
block
production.
The
exploit
allowed
the
brothers
to
fraudulently
obtain
$25
million
worth
of
cryptocurrency.

Closure
of
Cryptocurrency
Mining
Facility

President
Joe
Biden
ordered
the
closure
of
MineOne,
a
cryptocurrency
mining
facility
majority-owned
by
Chinese
nationals
and
located
near
the
Warren
Air
Force
Base
in
Wyoming.
The
President
believes
it
poses
risks
to
U.S.
national
security.

Commodity
Futures
Trading
Commission
Actions

The
Commodity
Futures
Trading
Commission
(CFTC)
settled
charges
against
Falcon
Labs
for
failing
to
register
with
the
CFTC
as
a
futures
commission
merchant
(FCM).
This
is
the
CFTC’s
first
action
against
an
unregistered
FCM
that
inappropriately
facilitated
access
to
digital
asset
exchanges.

Other
Developments

Other
notable
developments
include
actions
by
the
Department
of
the
Treasury,
the
Securities
and
Exchange
Commission,
and
the
White
House.
Internationally,
there
have
been
developments
in
Canada,
France,
Indonesia,
the
Netherlands,
the
Philippines,
and
the
United
Kingdom,
as
well
as
at
the
Bank
for
International
Settlements.

The
above
information
serves
as
a
primer
on
recent
events
impacting
the
crypto
industry.
The
crypto
regulatory
landscape
is
complex
and
rapidly
evolving,
so
staying
informed
is
crucial
for
anyone
operating
in
this
space.

Image
source:
Shutterstock

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