In the same week, U.S. regulators took two steps in opposite directions.
One was a step back. FinCEN formally withdrew its 2020 proposed rule on monitoring self-hosted wallets. The proposal would have required banks and payment providers to report transfers of more than $10,000 involving self-hosted wallets, and to keep records and verify identities for transfers over $3,000. It was issued in December 2020, received 7,685 comments, and then never took effect. Also withdrawn was a 2023 proposal targeting mixers.
The other was a step forward. CFTC Chair Selig proposed two new rules, Regulation CTX and CAM: retail customers seeking to make leveraged crypto trades would have to go through an FCM; and exchanges holding assets on behalf of customers would have to provide proof of reserves. He also clarified one point: transferring coins to a user's own non-custodial wallet counts as "actual delivery" if completed within 28 days.
On one hand, regulators are dismantling monitoring rules; on the other, they're setting rules for leverage and custody. It sounds contradictory, but it's really about the same thing: spelling out what's unclear.
$BTC #bitcoin
Which of these two developments do you think will have a bigger impact on ordinary crypto holders?
One was a step back. FinCEN formally withdrew its 2020 proposed rule on monitoring self-hosted wallets. The proposal would have required banks and payment providers to report transfers of more than $10,000 involving self-hosted wallets, and to keep records and verify identities for transfers over $3,000. It was issued in December 2020, received 7,685 comments, and then never took effect. Also withdrawn was a 2023 proposal targeting mixers.
The other was a step forward. CFTC Chair Selig proposed two new rules, Regulation CTX and CAM: retail customers seeking to make leveraged crypto trades would have to go through an FCM; and exchanges holding assets on behalf of customers would have to provide proof of reserves. He also clarified one point: transferring coins to a user's own non-custodial wallet counts as "actual delivery" if completed within 28 days.
On one hand, regulators are dismantling monitoring rules; on the other, they're setting rules for leverage and custody. It sounds contradictory, but it's really about the same thing: spelling out what's unclear.
$BTC #bitcoin
Which of these two developments do you think will have a bigger impact on ordinary crypto holders?