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On April 25th, 2023, Cody Carbone, VP of Policy at the Chamber of Digital Commerce, testified in a New York State Senate Hearing: To educate legislators and the public on cryptocurrency, discuss regulation of FinTech companies, and discuss FinTech licensing legislation (S.1450/Sanders).

Austin, TX, Monday, April 25, 2023 – The Don’t Mess with Texas Innovation Campaign – founded by Texas Blockchain Council, Chamber of Digital Commerce, and Satoshi Action Fund – will host the Digital Freedom Rally on Tuesday, April 25, 2023 on the Texas State Capitol Lawn. The event aims to promote the use of digital assets like Bitcoin as a means of promoting digital freedom, protecting online privacy, and educating the public and members of the Texas Legislature on the importance of Bitcoin mining in preserving the integrity of the Bitcoin network.

At the rally, expert speakers will discuss the importance of digital freedom and privacy, and how digital assets can play a vital role in protecting these fundamental rights in the state of Texas. 

“The rally is a call to action for individuals who believe in the importance of digital freedom and want to promote innovation in the technology sector,” said Perianne Boring, Founder and CEO of the Chamber of Digital Commerce. “This is a chance to show your support and learn about the benefits of decentralized technologies.”

More than 1,200 advocates from Texas and across the country are scheduled to be in attendance on Tuesday. Singer-songwriter and liberty-activist Tatiana Moroz is also scheduled to perform. The rally is open to the press, and a BBQ lunch will be provided. Details of the event, agenda and list of scheduled speakers is below: 

WHAT: Digital Freedom Rally 

WHEN: Tuesday, April 25, 2023

WHERE: Texas State Capitol Lawn

TIME: 11:00AM – 1:00PM CST

Speakers include: 

• Texas Senator Tan Parker
• Texas Rep. Giovanni Capriglione
• Texas Rep. Cody Harris 
• Commissioner Wayne Christian, Railroad Commission of Texas
• Brad Jones, former CEO of ERCOT

The Don’t Mess With Texas Innovation campaign launched earlier this month to protect the state’s energy grid and oppose anti-competitive legislation in the Texas State legislature that would drastically restrict Bitcoin data centers’ participation in the Electric Reliability Council of Texas (ERCOT) grid balancing programs.

Bitcoin miners in Texas employ more than 22,000 Texans and are a huge economic driver in rural areas. They also bring unique energy capabilities that have worked in partnership with ERCOT to secure and stabilize the power grid. 

“Bitcoin mining companies were able to curtail 50,000 megawatt hours of electricity in July 2022 alone to respond to record heat and energy demand, ensuring that Texans could continue to cool their homes,” said Lee Bratcher, the Founder and President of the Texas Blockchain Council. “No other industry can perform the same service as efficiently or effectively.” 

“Since China ceded its leadership on Bitcoin mining in May of 2021, Texas has become #1 in the world in Bitcoin mining. We are joining together at the Capitol in Austin to ensure Texas and the USA continue to lead on this innovative technology.” Said Dennis Porter, CEO & Co-Founder of Satoshi Action Fund. “The future of our energy systems depend on our ability to allow Bitcoin miners to flourish here in the USA. If we hinder the growth of Bitcoin mining in America, our foreign adversaries can and will overcome our lead on this powerful new technology.” 

Join the campaign at www.dontmesswithtexasinnovation.com.

About Satoshi Action Fund 

Satoshi Action Fund is an advocacy organization focused on educating policymakers and regulators on the benefits of Bitcoin and Bitcoin mining for the economy, the environment, and the grid.

About Texas Blockchain Council 

The Texas Blockchain Council is an industry association working to make the State of Texas the jurisdiction of choice for Bitcoin, blockchain, and digital asset innovation.

About Chamber of Digital Commerce 

The Chamber of Digital Commerce is the blockchain industry’s first and largest association. We are fighting to preserve the United States’ leadership in the digital economy through the acceptance and use of digital assets and blockchain technology. 

AUSTIN, TX – HB 1666, filed by State Rep. Giovanni Capriglione, passed in the Texas House of Representatives earlier today. The measure aims to rebuild trust in the market by requiring Proof of Reserves for digital asset exchanges.  

Below is the statement issued by Perianne Boring, Founder and CEO of the Chamber of Digital Commerce following its passage:  

“Congratulations to Rep. Giovanni Capriglione (R-TX) and the Texas House of Representatives on the passage of HB 1666, which seeks to protect Texas consumers’ investments in digital assets and addresses the critical issue of Proof of Reserves for exchanges. This legislation represents an essential step towards ensuring the stability and security of the digital asset market, and it is very promising to see this bill move forward.” 

“Our industry is committed to fostering innovation in the digital asset industry, and we strongly believe that transparency and trust are fundamental to its growth. The Proof of Reserves requirement in this bill is exactly what should be required by custodians to demonstrate that they hold sufficient assets to cover all customer deposits.” 

“We look forward to working with Texas lawmakers to continue to advance HB 1666 alongside the Innovation and Technology Caucus of the Texas Legislature and the Texas Blockchain Council. We believe this legislation can serve as a model for other jurisdictions seeking to ensure the stability and security of their digital asset markets.” 

The Chamber of Digital Commerce submitted a statement for the record in the House Committee on Financial Services hearing entitled “Oversight of the Securities and Exchange Commission.”

The Chamber of Digital Commerce, Texas Blockchain Council, and Satoshi Action Fund, have written a letter urging Lieutenant Governor Dan Patrick to oppose SB. 1751.  This anti-free market and anti-bitcoin mining bill threatens Texas’ leadership role in the digital economy and could have unintended consequences on the state’s energy grid. 

The letter highlights that Bitcoin mining data centers are abundant in Texas and provide unique demand response capabilities, working in partnership with ERCOT to secure and stabilize the power grid. If passed, SB. 1751 would restrict Bitcoin mining data centers’ ability to participate in ERCOT’s grid balancing services, negatively impacting grid stability and leading to higher expenses and energy prices for Texans. The letter urges Texas to remain a beacon of free and open markets by opposing the bill.

FOR IMMEDIATE RELEASE:

Blockchain Leaders Launch Grassroots “Don’t Mess With Texas Innovation” Campaign to Stop Anti-Competitive Energy Bill in Texas

Austin, TX, Monday, April 10, 2023 – The Texas Blockchain Council, Chamber of Digital Commerce, and Satoshi Action Fund announced today the launch of a grassroots campaign aimed at protecting the state’s energy grid and opposing anti-competitive legislation under consideration by the Texas State legislature that would drastically restrict Bitcoin data centers’ participation in the Electric Reliability Council of Texas (ERCOT) grid balancing programs.

The campaign is a response to Senate Bill 1751, which would raise energy prices for Texans and discriminate against the blockchain industry.

“We need to send a strong message to policymakers that the people do not want protectionist policies that push innovation out of the market,” said Perianne Boring, Founder and CEO of the Chamber of Digital Commerce. “At a time when folks here are concerned with the economy, jobs, and a reliable energy grid headed into summer, this bill is the wrong proposal at the wrong time. We are calling all members of the Bitcoin and blockchain community to stand with us in Texas and join our campaign.” Chamber members represent more than 50% of the country’s hash rate on Bitcoin, including many companies operating in Texas.

The campaign is taking action against the bill by organizing opponents in Texas and nation-wide encouraging them to reach out to legislators through phone calls, letters, and social media in opposition of the bill.

Lee Bratcher, President of the Texas Blockchain Council, had this to say about the bill. “ERCOT procures ancillary services for extra capacity to be deployed if needed in an emergency, so by limiting Bitcoin miners’ participation by not allowing them to bid the price down, ERCOT and all Texans will be paying more for these services. This bill does not embody the free-market principles that have made Texas a global economic powerhouse.”

“This bill will stifle innovation, raise energy prices, and kill rural jobs in Texas,” said Dennis Porter, CEO of the Satoshi Action Fund. “The supporters of SB1751 want to interrupt the flow of the free market by creating an anti-competitive marketplace for the benefit of a small group of

industry insiders. A ‘NO’ vote would mean that Texas can continue to lead on energy innovation.”

Bitcoin miners in Texas employ more than 22,000 Texans and are a huge economic driver in rural areas. They also bring unique energy capabilities that have worked in partnership with ERCOT to secure and stabilize the power grid. Bitcoin mining companies were able to curtail 50,000 megawatt hours of electricity in July 2022 alone to respond to record heat and energy demand, ensuring that Texans could continue to cool their homes. No other industry can perform the same service as efficiently or effectively.

“Bitcoin miners have provided a valuable additional tool for ERCOT’s operators during tight supply conditions: a flexible load that can shut down so that needed electricity can flow to our most vulnerable customers,” said Brad Jones who served as ERCOT’s interim President and CEO in 2021 and 2022.

The Don’t Mess with Texas Innovation campaign is calling on Texans and the entire Bitcoin and blockchain industry to join the fight to protect the state’s energy grid and oppose Senate Bill 1751.

Join the campaign at www.dontmesswithtexasinnovation.com.

About Satoshi Action Fund

Satoshi Action Fund is an advocacy organization focused on educating policymakers and regulators on the benefits of Bitcoin and Bitcoin mining for the economy, the environment, and the grid.

About Texas Blockchain Council

The Texas Blockchain Council is an industry association working to make the State of Texas the jurisdiction of choice for Bitcoin, blockchain, and digital asset innovation.

About Chamber of Digital Commerce

The Chamber of Digital Commerce is the blockchain industry’s first and largest association. We are fighting to preserve the United States’ leadership in the digital economy through the acceptance and use of digital assets and blockchain technology.

Today, the Chamber sent letters to Illinois State lawmakers urging them to oppose H.B. 3479/S.B. 2233, also known as the Digital Asset Regulation Act, or DARA. and other corresponding legislative titles. These proposals would essentially eliminate the digital asset and blockchain industry in Illinois and put the state at an economic and technological disadvantage. 

As noted in our letter, we commend the Illinois legislature for taking the first step to create a much-needed regulatory framework for digital assets, but we urge them to collaborate with industry to limit the negative impact this bill will have on business operations in the state. The legislation contains several deleterious issues, including but not limited to: 

• The definition of “Digital asset business activity” would implement the same licensing requirements on businesses of all sizes, from individuals to start-ups and public companies. 
• Decentralized protocols or communities would be unable to satisfy licensing compliance requirements and thus, be unable to operate in Illinois. 
• The proposals give the Illinois Department of Financial and Professional Regulation (IDFPR) carte blanche to revoke or reject licenses without limitation or explanation. 
• The proposals impose IDFPR oversight on third-party affiliates of digital asset businesses making it overly burdensome to obtain essential services. 

We hope that Illinois State lawmakers will work collaboratively with the Chamber of Digital Commerce, its Illinois State members, and the broader digital assets and blockchain industry to foster a workable and effective regulatory framework that safeguards consumers from the bad actors while providing an environment that allows Illinois’ innovative entrepreneurs to flourish and grow. 

The Chamber will engage in individual states as needed to ensure that bad policy does not impact digital asset and blockchain businesses ability to operate anywhere in the United States. 

The Financial Accounting Standards Board (FASB) released its long-awaited proposed accounting rules for reporting on certain types of crypto assets. This is a major development. For nearly a decade, the Chamber of Digital Commerce has advocated for setting clear accounting disclosure rules for crypto assets. The Chamber commends the FASB for their efficient work and look forward to getting these rules over the finish line. 

The proposed rules aim to better reflect the economics of the technology by measuring crypto assets at fair value, potentially reducing the cost and complexity associated with applying the current cost-less-impairment accounting model. “The FASB’s proposed accounting rules on crypto assets are a big step forward for mainstream adoption of crypto,” said Perianne Boring, Founder and CEO of the Chamber of Digital Commerce. “Measuring these assets at fair value provides a more favorable, equitable accounting treatment of these assets. This move highlights the desire of the crypto industry to be treated similarly to other forms and classes of investments.” 

The proposed rules would apply to crypto assets that meet all of the following criteria:

1. Meet the definition of an intangible asset, which is defined as an asset that lacks physical substance. 
2. Do not provide the asset holder with enforceable rights to, or claims on, underlying goods, services, or other assets
3. Are created or reside on a distributed ledger based on blockchain technology
4. Are secured through cryptography
5. Are fungible
6. Are not created or issued by the reporting entity or its related parties.

“This will also create greater certainty and transparency for investors into the fair value of crypto assets held by entities, as well as additional disclosures about the types of crypto assets held and changes in those holdings, while also encouraging adoption to diversify investment holdings,” Boring said. 

The Chamber of Digital Commerce plans to review and provide comments on the proposed accounting rules by June 6. After the submission deadline, FASB will review comments received before a vinyl vote on the proposals. 

The President’s Economic Report to Congress presents views of digital assets and blockchain that – to put it mildly – are both surprising and disappointing.  

Surprising because the very basis of its analysis: that our industry seeks to operate “without relying on governments and their regulatory frameworks” does not reflect the countless hours the Chamber of Digital Commerce, and it’s members have undertaken to work with policymakers in Washington, the states, and around the globe  to bring digital assets and blockchain technology further into the regulatory perimeter. 

Disappointing because this report fails to acknowledge regulatory agencies’ decade-long disregard and ambivalence toward developing meaningful policies that would provide clarity, certainty and investor protections for digital asset and blockchain-based businesses. As ongoing federal litigation indicates, efforts by our industry to build a clear and consistent legal framework have been stalled in favor of confusion and ridicule. 

Perhaps even more disappointing is the Report’s demonstrably false claim that crypto-assets have failed to provide benefits to users and the global economy. From Ukraine to El Salvador to Washington, DC, the digital asset and blockchain industry continues to create new and exciting opportunities that will forever change the global economy. These innovations have not been lost on other mature economies that have seized their promise and allowed them to flourish safety and soundness within their regulatory boundaries. The President’s Report illustrates that the United States is at a greater risk of falling behind. 

Nevertheless, we remain committed to fulfilling our education mission and working with policymakers to foster a legal framework for these innovative technologies that prioritizes consumer protection and U.S. leadership in innovation. 

The Chamber of Digital Commerce is launching a new educational “Know Your Crypto” campaign to build policymaker’s and consumers’ knowledge of cryptocurrency, digital assets, blockchain technology, and these technologies’ potential for financial markets and the real-world economy. The campaign includes a variety of resources, including one-pagers, webinars, and videos.

The primary goals of “Know Your Crypto” are to provide policymakers with greater insights on blockchain technologies, cryptocurrency, and digital assets as they put in place effective policies that support the responsible adoption and use of these technologies. At the same the education effort will empower consumers and investors with a greater understanding of the technologies and confidence in how they can utilize the technologies in their everyday lives. 

“Know Your Crypto is an essential educational initiative that will ensure policymakers have the necessary knowledge to make informed decisions about the rapidly-evolving digital asset ecosystem,” said Perianne Boring, Founder & CEO of the Chamber of Digital Commerce. “Similarly, this campaign will encourage a more engaged and informed consumer who can link their personal financial goals to the policies that affect them.”  

The “Know Your Crypto” campaign is launching at a crucial moment  given the current, unclear regulatory environment for cryptocurrency and digital assets. Many policymakers and consumers are still unfamiliar with the fundamentals of these technologies and the potential benefits and risks they present. 

As well, there is no clear consensus on what policies Congress should set or how digital assets should be regulated by the administrative agencies. By providing education and resources on cryptocurrency, the Chamber is promoting a better understanding of cryptocurrency and its potential impact on financial markets and the economy, ensuring policymakers are crafting effective policies that support innovation and growth in the digital asset industry, while also protecting consumers.  

The educational materials will be posted in a new section on the Chamber’s website and will be used to host briefings with policymakers. Each section of the curriculum will incorporate vignettes featuring the Chamber’s diverse membership and will at a high level cover different crypto and blockchain subjects and categories, including:

• An introduction covering the basics of cryptocurrency and blockchain technologies, explaining how they work and their potential benefits and risks. 
• Videos highlighting the advantages of using cryptocurrency, such as faster and cheaper transactions, greater financial privacy, and the ability to operate in a decentralized manner. 
• Best practices highlighting potential risks associated with cryptocurrency, such as fraud and scams, volatility of cryptocurrency prices, and lack of regulation in the cryptocurrency market.
• A “How to Get Started” introduction on how to set up a cryptocurrency wallet, create an NFT, buy and sell cryptocurrency, and securely store cryptocurrency. 
• Key resources providing a list one-pagers, courses, articles, and reports created by the Chamber’s membership.

We believe the “Know Your Crypto” campaign is an important initiative to help policymakers and consumers gain a better understanding of cryptocurrency and its potential impact on the economy. With increased knowledge, policymakers can make informed decisions about cryptocurrency regulation, while consumers can make informed decisions about the responsible adoption and use of this technology.