The Chamber of Digital Commerce is thrilled to acknowledge the remarkable progress made in the realm of crypto asset accounting standards, thanks to the diligent efforts of the team at the Financial Accounting Standards Board (FASB). The completion of the technical agenda project late last year on certain crypto assets represents a pivotal advancement in our industry.
The updated guidance serves as an essential tool for businesses and financial statement users navigating the complex landscape of digital asset accounting. It fosters greater transparency and consistency across the industry, showcasing US leadership in establishing sensible accounting standards.
Looking Forward: A Call for Continued Collaboration
The Chamber of Digital Commerce is eager to continue our collaboration with the FASB. We believe that through ongoing dialogue and partnership, we can address the evolving needs of the crypto asset market and establish comprehensive, resilient accounting practices that capture the true economic essence of crypto assets.
An Invitation to Dialogue
We are curious about the FASB’s vision for the next steps in refining crypto accounting standards and how organizations like ours can support these efforts. The potential for follow-up on wrapped crypto assets, stablecoins, or NFTs presents an exciting avenue for further exploration.
Read our ‘Thank You’ letter to FASB exploring further collaboration efforts.
Subcommittee on Digital Assets, Financial Technology and Inclusion
Hearing entitled: Crypto Crime in Context Part II: Examining Approaches to Combat Illicit Activity
Summary
On February 15, 2024, the House Committee on Financial Services Subcommittee on Digital Assets held the second part of its Crypto Crime in Context hearings. Witnesses for the hearing included:
Caroline Hill, Senior Director of Global Policy and Regulatory Strategy at Circle
Ari Redbord, Global Head of Policy and Government Affairs, TRM Labs (one of our very own National Security Task Force leaders)
These hearings are in response to the October 7th attacks on Israel by Hamas, which raised concerns over cryptocurrency’s role in illicit finance. This hearing focused on the current landscape of illicit finance in the digital asset industry, gaps in compliance, blockchain analytic tools, as well as current legislative proposals and risk assessments that may have significant effects on our industry.
Overall Takeaway: The hearing underscored the complexity of regulating digital assets and the importance of balancing innovation with robust compliance measures. The need for continuous collaboration between the industry and regulatory bodies was emphasized to ensure a secure digital asset environment. We anticipate that increased focus on sanctions enforcement across the industry is extremely likely. The Chamber of Digital Commerce will continue to be a lynchpin to facilitate cooperation and actively foster sensible laws that enable blockchain technology to thrive in the U.S.
Summary
In his opening statement, Subcommittee Chairman French Hill (R-AR) emphasized the critical need for a balanced regulatory approach to digital currencies, highlighting the challenges posed by the decentralized nature of the blockchain. He advocated for a combined strategy of domestic and international regulatory cooperation to address potential gaps being exploited by bad actors. This perspective aligns closely with the Chamber of Digital Commerce advocacy for proactive and collaborative regulatory measures. Alongside Ranking Member Stephen Lynch’s (D-MA) observations about the rising use of digital assets in ransomware attacks and other illicit activities, their insights reinforce the Chamber’s stance on the importance of evolving regulation and technological capabilities in the crypto sector.
Witnesses gave very strong opening statements, particularly Michael Mosier urging government to “resource existing treasury authorities before adding more unfunded mandates. Throwing more shovels at people who already have 15 in each hand is not making them more effective, it’s setting them up for failure.” This underscored the importance of government resource allocation, cautioning against the ineffectiveness of overburdening agencies with unfunded mandates. Carole House offered four areas for proposed action to reduce illicit activity that may be indicative of where future legislative and regulatory action will evolve:
(1) Enhance regulatory and enforcement capability to take sustained, timely actions against the most egregious violators in the space through prioritized agency funding and honing of disruption authorities (e.g., FinCEN’s 311 and 9714),
(2) Promote timely international action on FATF standard adoption through diplomacy and capacity building across priority jurisdictions,
(3) Enhance outcome-oriented public-private partnerships for info sharing and R&D (examples like NCIJTF’s IVAN program, NCFTA, the FBI’s Financial Fraud Kill Chain, FinCEN’s Rapid Response Program, Crypto-ISAC, IST Ransomware Task Force, etc.) and,
(4) Promote development of secure, trustworthy, and interoperable digital identity infrastructure.
Reps. Ritchie Torres (D-NY) and Wiley Nickel (D-NC) expressed support for blockchain technology, and cited the nature of distributed ledger technology as a major benefit for combating illicit finance. Chair Hill also stated that most illicit activity using digital assets occurs offshore where U.S. regulations do not apply. Witnesses came to consensus on these ideas and reinforced the miniscule amount of illicit activity happening through digital assets in comparison to traditional finance.
Full Committee Ranking Member Maxine Water (D-CA), Subcommittee Ranking Member Lynch and Representative Sean Casten (D-IL) spoke on their primary concerns with the decentralized nature of DeFi allowing for illicit activity and the prevalence of off-chain illicit activity. Takeaway: As off-chain transactions are used more widely to improve blockchain scalability this issue of regulating off-chain transactions could become more prevelant. Rep. Brad Sherman (D-CA) continued his previous rhetoric against the industry, bystating that the sole purpose of CVC Mixers is for illicit activity. Takeaway: Rep. Sherman intentionally neglects to see the privacy benefits of mixing technology. See the Chamber’s response to FinCEN’s notice of proposed rulemaking on CVC mixing.
Maybe unsurprisingly, Democrats and Republicans seem to be talking past one another. Republicans emphasized Treasury’s admission that blockchain is not the preferred vector for terrorists to finance their activities while Democrats emphasized that there is still likely more illicit activity occurring than is being detected or reported. This is probably a “both, and” situation and not an “either, or”– it is likely that there is more activity taking place than is being detected and still not nearly as much proportionately as is taking place on traditional financial rails and via the hawala network. Still, this was an important admission coming from the Undersecretary for Terrorism and Financial Intelligence. Democrats advocated for additional resources to enable FinCEN to operate effectively, a perennial need, while also repeating the red herring that crypto is only used by criminals and terrorists. However, the continued attention on the topic and the positive comments of the Undersecretary are beginning to erode this kind of non-starter, unhelpful perspective that does not move the conversation forward.
Yesterday, the House Financial Services Committee conducted a hearing titled “Oversight of the Financial Crimes Enforcement Network (FinCEN) and the Office of Terrorism and Financial Intelligence (TFI)” and featured testimony from Brian E. Nelson, the Undersecretary for Terrorism and Financial Intelligence at the Department of the Treasury, and Andrea Gacki, Director of FinCEN.
The hearing primarily addressed the roles of FinCEN and the Treasury in thwarting illegal financial activities by malicious entities and terrorist groups. Discussions revolved around the enforcement of Suspicious Activity Reports (SARs) and the implementation of the Corporate Transparency Act (CTA), which mandates companies to report Beneficial Ownership Information to FinCEN, and aligning with the Anti-Money Laundering and Countering the Financing of Terrorism Framework (AML/CFT).
The most notable moment came when Representative Tom Emmer (R-MN) inquired about the extent of digital asset utilization by terrorist organizations like Hamas. Undersecretary Nelson clarified that the use of cryptocurrencies by Hamas is significantly less than reported by the Wall Street Journal, indicating that cryptocurrencies are not a favored tool among Hamas terrorists, a sentiment that Rep. Bryan Steil (R-WI) echoed later in the hearing. Other key points include:
Committee Chairman Patrick McHenry (R-NC) emphasized the need to prevent foreign adversaries from exploiting the U.S. financial system for illicit purposes, questioning the effectiveness of the beneficial ownership reporting regime in helping to catch bad actors. He also expressed frustration at the continual request for more resources and funding with a seeming lack of results.
Committee Ranking Member Maxine Waters (D-CA) highlighted the Treasury’s role in bringing the cryptocurrency exchange Binance to justice, resulting in a $4.3 billion settlement, and criticized Republicans for not supporting increased funding and authority for Treasury and other national security agencies.
Undersecretary Nelson discussed the minor role of cryptocurrency in funding militant groups and the efforts to address compliance gaps in the crypto space. Undersecretary Nelson also emphasized that the Treasury is considering systemic deficiencies in U.S. AML/CFT regime.
Director Gacki highlighted FinCEN’s five-year monitorship of Binance, the opportunities that processing SARs from activity in recent years creates and that FinCEN needs to be adequately funded being at the forefront of virtual asset expertise and monitoring.
Representative Brad Sherman (D-CA) continued his criticism that cryptocurrencies are primarily used by drug dealers and terrorists.
Representative Ritchie Torres (D-NY) argued that FinCEN’s proposed rules on mixers are unnecessary, as financial institutions are already required to file SARs for mixer transactions.
Representative Sean Casten (D-IL) highlighted the prevalence of illicit crypto transactions and use of mixers, urging FinCEN to continue its monitoring efforts while suggesting that illicit activity on-chain and on-exchange are much more prevalent than is currently reported.
In an industry where trust is paramount, Chamber of Digital Commerce member Bitwise has taken a groundbreaking step by becoming the first Bitcoin ETF provider to publicly display its bitcoin wallet address. This move not only sets a new standard for transparency in the ETF sector but also aligns perfectly with the foundational ethos of public blockchain technology: openness, transparency, and trust.
The Importance of Transparency
Transparency is the cornerstone of the blockchain. It allows for every transaction to be verified, traced, and audited by anyone, anywhere in the world. This level of openness is what attracted many to cryptocurrencies in the first place, promising a financial system where trust is built into the technology itself.
Bitwise’s decision to publicly display its Bitcoin wallet addresses for ETFs is a significant nod to this ethos. For investors, this means an unprecedented level of insight and reassurance. They can now see, in real-time, where their assets are held and monitor their investments with a level of detail that was previously unavailable in the traditional financial system.
A Call to Action for Other ETF Providers
While Bitwise’s initiative is commendable, it’s just the beginning. We believe that what Bitwise has done should not be the exception but the norm. We urge other ETF providers to follow suit and offer similar transparency to their investors. By doing so, they can significantly enhance investor confidence, reduce skepticism, and foster a more trustworthy investment environment.
The Benefits of Wallet Transparency
Enhanced Investor Confidence: By allowing investors to see where their Bitcoin is held, ETF providers can build a stronger relationship based on trust and transparency.
Reduced Risk of Fraud: Public wallet addresses make it harder for bad actors to mislead investors or mismanage funds, as all transactions are visible and can be audited by the public.
Alignment with Blockchain Principles: Adopting practices that reflect the transparency and openness of blockchain technology demonstrates a commitment to these transformative ideals.
Moving Forward
As the financial world continues to evolve with the integration of blockchain technologies, it’s imperative that we uphold the principles that make these technologies so revolutionary. Transparency, openness, and trust should not just be buzzwords but guiding principles for all financial instruments, including ETFs.
Bitwise’s initiative is a commendable step in the right direction, but it’s just the start. We call on other ETF providers to embrace this level of transparency, thereby reinforcing the trust investors place in them and in the broader financial system.
The future of finance is transparent, decentralized, and open. Let’s work together to ensure that our investment practices reflect these ideals. By doing so, we not only enhance the integrity of our financial systems but also pave the way for a more inclusive and equitable global economy.
Conclusion
The public display of Bitcoin wallet addresses by Bitwise is a pioneering move that should inspire other ETF providers to embrace transparency. This is not just about following a trend; it’s about committing to the principles of the public blockchain and fostering a more secure, transparent, and trustworthy investment landscape.
The Chamber of Digital Commerce has taken a definitive step to champion the integrity of trademarks within the burgeoning realms of the Metaverse and NFTs by filing an amicus brief in the landmark case involving Hermès and its iconic Birkin bag trademark.
We extend our profound gratitude to the esteemed legal team at Polsinelli Law Firm for their exceptional leadership in crafting our amicus brief for this pivotal case. Special thanks to Jonathan Schmalfeld, Laila Wolfgram, and Dan Mullarkey for their dedication and expertise. Their contributions have been invaluable in shaping a compelling argument that stands to make a significant impact on the future of digital asset jurisprudence.
Why This Case Matters
The Chamber’s amicus brief underscores the vital role that trademarks play in the digital marketplace. In an era where physical goods are increasingly represented by their digital counterparts, trademarks are not just a legal formality; they are the lighthouse guiding consumers through the fog of the digital marketplace. The Chamber’s stance is clear: the protection of trademarks in the Metaverse and for NFTs is a consumer imperative.
The Economic Potential of NFTs and the Metaverse
NFTs are carving new pathways for creativity and commerce, with industries like sports, entertainment, gaming, and fashion already capitalizing on their potential. As these digital goods become more integrated into our everyday lives, it’s paramount that the trademarks associated with them are protected. This not only assures consumers of the authenticity and quality of their digital goods but also fosters an environment where brands and creators can confidently innovate.
Our Call to the Court
The Chamber’s brief argues that traditional tests for trademark infringement, such as the likelihood of confusion analysis, should apply to digital goods and NFTs. Our digital future depends on the clear and consistent application of trademark law to avoid misleading consumers and infringing on brands’ and creators’ right to enter the Metaverse when they choose.
Looking Forward
“NFTs and the blockchains they are recorded on are important technologies that will be instrumental to the continued development of the internet and e-commerce. It was an honor for the Polsinelli Blockchain+ team to work with The Chamber of Digital Commerce for this amicus, which we hope will create case law that protects brands, creators, and consumers as they enter web3 and the Metaverse” said Jonathan Schmalfeld, Associate at Polsinelli PC.
As the Chamber of Digital Commerce stands with Hermès in this case, we are not just advocating for one brand’s rights. We are setting a precedent for the entire digital economy, ensuring that the trademarks which have become synonymous with trust and quality in the physical world carry the same weight in the digital one.
We invite you to read our full amicus brief and join us in this pivotal moment for the future of digital commerce.
The Chamber of Digital Commerce applauds U.S. Representatives Zach Nunn and Abigail Spanberger’s bipartisan Creating Legal Accountability for Rogue Innovators and Technology (CLARITY) Act.
The CLARITY Act addresses the urgent need to safeguard American intellectual property, enhance our national security, and protect the private information of U.S. citizens from the risks posed by foreign-developed blockchain technologies, particularly those originating from China.
By prohibiting the federal government’s use of blockchain infrastructure developed by foreign adversaries the CLARITY Act takes a critical step towards ensuring that Americans’ sensitive data and U.S. national security intelligence remain secure from external threats.
It’s time for the U.S. to prioritize domestic blockchain innovation to safeguard against these emerging threats and fortify our defenses against the misuse of our data. The Chamber of Digital Commerce proudly advocates for the prompt passage of the CLARITY Act to shield our nation from the dangers inherent in foreign-dominated blockchain platforms.
Additional information on the bill can be found here.
This past week, Secretary of the Department of Treasury Janet Yellen testified before the House Financial Services and Senate Banking Committees in hearings titled: “The Annual Report of the Financial Stability Oversight Council (FSOC).”
Yellen identified gaps in the current regulatory framework, especially around stablecoins and the broader crypto market. The hearings highlighted a collective call to action for Congress to establish clear rules that could guide the future of finance in a digital age. With a focus on enhancing financial stability and protecting consumers, the testimony underscored the urgency of adapting regulatory practices to keep pace with innovation.
Key Takeaways:
Sec. Yellen pointed to regulatory gaps: “Congress should pass legislation to provide for the regulation of stablecoins and the spot market for crypto assets that are not securities.”
“The CFTC, for example, doesn’t have supervisory or regulatory authority with respect spot markets and commodities like Bitcoin…so that’s a regulatory gap.”
“Stablecoins pose risks to the financial system that both FSOC and the President’s Working Group on Financial Markets have identified as potentially becoming significant over time and we would very much welcome an effort by Congress to create a regulatory framework that would be appropriate to address those risks.”
Chair McHenry (R-NC) highlighted legislation to fill these gaps: “On the regulation of the spot market for digital assets. This committee has produced two, bipartisan bills. One on stablecoins and one on market structure to regulate the spot market of digital assets, providing clarity between the SEC and CFTC.”
McHenry continued: “stablecoins are now being regulated by the states. New York has a very ‘resilient’ regime. Are you suggesting something like the New York regime would be applicable to fix this problem?”
Sec. Yellen responded that “FSOC believes it’s critical for there to be a federal regulatory floor that would apply to all states and a that federal regulator should have the ability to decide if a stablecoin issuer should be barred from issuing such an asset.”
Sen. Brown (D-OH) and Sen. Warner (D-VA) continued to point to illicit finance’s use of crypto:
Sen. Brown questioned if Treasury needs to “update [their] counter-terrorism tools to respond to the risk created by digital assets?” Sec. Yellen responded that the agency has “identified a number of holes in our authorities and composed a list of suggestions for ways in which Treasury’s authorities could, and should be, strengthened.”
Sen. Warner asked for a direct endorsement of his Terrorist Financing Prevention Act, legislation that would broaden the U.S. Treasury Department’s sanctions powers and grant FinCEN additional authorities to address threats involving digital assets. Sec. Yellen affirmed her endorsement and added “I would agree that there are limitations the Treasury faces, and we certainly support the aims of the bill. It would help give us authorities that would enable us to better deal with a very significant threat.”
The following statement can be attributed to Lee Bratcher, Board Member and President at the Texas Blockchain Council, and Perianne Boring, Founder and CEO of the Chamber of Digital Commerce, in response to the U.S. Energy Information Administration (EIA) announcing an unprecedented Information Collection Request from identified cryptocurrency mining companies operating in the United States:
“The EIA’s mandatory emergency survey of electricity consumption data represents the latest in a politically motivated campaign against Bitcoin mining, cryptocurrency, and U.S.-led innovation. We believe this should cause concern for all industries that rely on data centers as part of their operations.
Instead of focusing on improving our aging electricity infrastructure and working to ensure grid stability, the Department of Energy and EIA have prioritized taking unprecedented steps to target private businesses for political purposes. This action is an abuse of authority in order to further the Biden administration’s public goal “to limit or eliminate” U.S. Bitcoin miners, while pleading ignorance to U.S. miner’s utilization of renewable resources and uniquely flexible operations.
Thanks to Bitcoin miners’ ability to rapidly adjust their data centers’ power usage according to grid conditions, their operations are the most flexible and responsive electrical loads in the nation. It is well known that they offer critical grid stabilizing benefits to the communities in which they operate. These capabilities were on full display during recent periods of cold weather in Texas, which the EIA boldly cites in its justification for this misguided measure. If the stated justification for this emergency action – concern with data centers potentially overloading the grid – is to be trusted, other industries, such as financial institutions and social media companies, should now also be on notice of this troubling new tactic.
Bitcoin miners comprise one of the most transparent industries in the world. (See, e.g., EIA Website,Hashrate Index, Cambridge University, Texas A&M, ERCOT Data). Moreover, each data center’s development entails exhaustive investment, administrative, procurement, and construction processes before they can begin operations. These facts belie the purported justification for this ‘emergency’ mandate.
This is an attack against a legitimate American businesses with the administration feigning an emergency to score political points. The White House has been clear that they desire to ‘to limit or eliminate’ Bitcoin miners from operating in the United States. Although Bitcoin is resilient and cannot be banned, the administration is seeking to make the lives of Bitcoin miners, their employees, and their communities too difficult to bear operating in the United States. This is deeply concerning.
We strongly believe EIA has overstepped its authority in issuing this emergency mandate. We urge the Biden administration to reconsider this course of action. Until that time, we will be pursuing all legal recourses available to us.”
The Chamber of Digital Commerce applauds the bipartisan initiative taken by Senator Cynthia Lummis (R-WY) along with Representatives Mike Flood (R-NE) and Wiley Nickel (D-NC) for their commitment to overturning the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121. SAB 121 has negatively impacted consumers and breached the integrity of the rulemaking process.
Today’s bipartisan resolution represents a decisive action to ensure the SEC operates within its designated rulemaking authority. By failing to issue SAB 121 in adherence with the rulemaking process, the SEC bypassed established procedures, compromising the integrity of the regulatory framework, and violating principles of transparent and inclusive governance.
Moreover, SAB 121’s implementation imposed stringent restrictions on banks and other trusted custodians’ ability to manage digital assets. This not only heightened the risks of consumers delving into digital asset investments, but also increased their financial burdens, making it more challenging for them to safely engage with digital assets.
As we celebrate this milestone, let us also prepare for the road ahead. We will continue to engage with our allies in Congress, the industry, and the broader community to ensure that this resolution passes and SAB 121 is nullified as we pave the way for the responsible, innovative growth of the digital asset sector.
Background:
The SEC issued SAB 121 in March 2022. It presented an unworkable regulatory environment for digital asset custodians by mandating an equivalent liability on the balance sheet for each held digital asset. This requirement, both unprecedented and financially unfeasible, threatened the operational viability of digital asset custodians.
In response, the Chamber of Digital Commerce’s Token Alliance established our SAB 121 workstream, driving advocacy efforts to rescind the unworkable rule. The workstream has submitted eight letters to Congress concerning digital asset custody matters, engaged with the SEC’s Office of the Chief Accountant, and urged the Government Accountability Office (GAO) to review the rule in a collaborative effort with Senator Lummis and Representative McHenry.
In October 2023, the GAO conducted a comprehensive review and concluded that SAB 121 qualifies as a rule under the Congressional Review Act (CRA). This classification was due to its nature as an agency statement of general applicability and future effect, aimed at interpreting and prescribing policy.
CRA allows Congress to review and approve/disapprove rules issued by federal agencies for a period of 60 days (if rule not submitted, its 60 days from GAO opinion). If Congress does not agree with the rule, each chamber may pass a resolution of disapproval that must be signed by the President. If a rule is nullified by a resolution of disapproval, the rule is void and the SEC is prohibited from reissuing a similar regulation without congressional authorization.
Resolutions of disapproval need to be passed by both Houses of Congress by a simple majority vote – so Senate only needs 51 votes not 60.
This resolution must also be signed by the President. Successfully passing this resolution not only stops the rule from being implemented or remaining in effect but also prevents the agency from reintroducing a similar rule unless new legislation permits it.
As we embark on a new year, today, we are thrilled to showcase some of our significant milestones from the past year. We have played a pivotal role in advocating for our industry, resulting in remarkable legal victories and substantial policy changes. These developments have laid a robust foundation for our industry as it enters the next phase of adoption.
Read on 👇
Creating Congressional Champions
Convos with Congress: In 2023, we facilitated over 240 industry meetings with Congressional offices, and the results are showing (as you will see below). We played a crucial role in blocking adverse bills and fostering influential, bipartisan legislation like the “FIT Act” and the “Deploying American Blockchains Act.”
Fighting Crypto Fraud: We are committed to fostering the adoption of Proof of Reserves within the industry. The collapse of FTX in November 2022 spurred us to elevate our work in this area. Policymakers from across the nation have actively engaged with us, seeking regulatory solutions to safeguard the cryptocurrency industry from future fraud and abuse.
On June 9, 2023, the Governor of Texas signed H.B. 1666 into law, mandating Proof of Reserves for digital asset exchanges in the State of Texas.
On October 19, 2023, U.S. Senators Tillis (R-NC) and Hickenlooper (D-CO) introduced the bipartisan Proving Reserves of Others’ Funds Act, or the PROOF Act, in the Senate. The bill, currently pending, would enhance transparency at cryptocurrency exchanges far beyond the capabilities of conventional financial institutions.
We Launched the Digital Power Network
A New Advocacy Group: Representing over 50% of the U.S. Bitcoin hash rate, Digital Power Network is a strategic endeavor to advocate for Bitcoin and blockchain technology with energy and national security stakeholders.
Advancing Energy Security: We teamed up with U.S. Rep. Pete Sessions to introduce HR 238, promoting Bitcoin mining as a pivotal tool for advancing domestic energy security.
#1 Barrier to Corporate Adoption of Bitcoin
The historically complex accounting challenges surrounding digital assets have, as Michael Saylor aptly put it, been “the number one impediment to the corporate adoption of bitcoin.” In 2023, we broke through this barrier.
Treasury Triumph: After a long battle advocating for clear accounting rules, the Financial Accounting Standards Board approved a groundbreaking change, permitting businesses to record digital assets at fair market value. This rule change will empower businesses to utilize bitcoin for treasury management purposes.
The SEC’s “Forever War”
The ongoing battle for regulatory clarity in the digital asset sector, dubbed the SEC’s “forever war” by the Wall Street Journal, has prompted legal battles. This conflict drove many innovators and investors to relocate outside the United States, impacting the country’s leadership in advanced technologies.
Legal Win: In the landmark case SEC v Ripple, the District Court accepted all recommendations from our Amicus Brief, marking a substantial victory for the industry, which helped establish much-needed regulatory clarity.
Unlocking Institutional Adoption
Institutional investors will play an important role in the mainstream acceptance of digital assets. However, to pave the way for their participation, we must ensure the necessary infrastructure is firmly in place. For regulated financial institutions to engage with digital assets, it is imperative that they have access to institutional-level custody solutions.
SAB 121 is an unworkable custody requirement for digital assets, requiring custodians to hold an equal asset on the balance sheet as a liability, meaning for every $100 in bitcoin the custodian holds, it must also hold $100 in a similar asset.
Power: We urged Congress to rescind SAB 121, prompting the Government Accountability Office (GAO) to take action. The GAO found that SEC’s release of SAB 121 violated the Administrative Procedure Act, thereby making it subject to Congressional review. This year, we are focused on working with our partners on the Hill to nullify SAB 121.
The Historic ETF Approval
IT HAS BEEN APPROVED! For over a decade, the SEC has blocked spot bitcoin ETFs from the U.S. market. We investigated why the SEC appeared to hold Bitcoin to a different standard. The spot bitcoin ETF approvals are not just a win for The Chamber of Digital Commerce and our members, it is a victory for the entire digital asset community and all proponents of investment choice and regulatory fairness.
The Crypto Conundrum: We produced a report exploring the SEC’s unwillingness to approve spot bitcoin ETF applications and exposing the SEC’s arbitrary actions. Our report reached all 535 Members of Congress.
We didn’t stop at a report: In addition to joining an Amicus Brief in the matter of SEC v. Grayscale, we were actively involved in an awareness campaign on Capitol Hill. Our efforts generated sustained pressure on the SEC to approve spot bitcoin ETFs.
Here’s to 2024: The Cardinal Year for Crypto!
Take Action in 2024: Consider joining us at The Chamber of Digital Commerce in 2024 as we continue to grow as an organization and make a direct impact on crypto policy. You can also support our work by making a tax-deductible donation here.
Thank You for a Remarkable 2023! Your support made it possible, and we’re ready for even greater things in 2024.
