A New US Regulatory Framework for Exchanges?

Plus the biggest ever mint of wrapped BTC

Happy Thursday, Blockfolians

The Lede

Rep. Michael Conway (R-TX) has just introduced the Digital Commodity Exchange Act of 2020. The goal of the bill would be to create a federal definition of “digital commodities” and put them in a distinct legal category, to be overseen by the CFTC.

Michael Conaway, Texas Republican, to take over House Russia probe -  Houston Chronicle

Another goal of the act would be to streamline numerous disparate regulations into one singular framework. If you’re wondering, however, this would work in terms of the relationship between the SEC and the CFTC, here’s what CoinCenter’s Peter Van Valkenburgh had to say about it.

“This should also help to better define the line between SEC and CFTC jurisdiction: pre-sale agreements will continue to be regulated by the SEC, but there will be less need for continued SEC wariness once the tokens are delivered and the network is live because the CFTC will be picking up the regulatory slack and supervising sales to the public upon network launch.”

It’s interesting to note that the “cryptos are commodities” argument has some proponents in the traditional finance world.

For many in the crypto industry, however, the real deal is the clarity. A clear regulatory framework for the US would be a welcome shift.

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Highly Relevant Reading

  • Russia’s Ministry of Finance is going after crypto with higher reporting standards

  • Ouch. A Canadian report finds that those with low financial literacy are more likely to own crypto than those who rank higher.

  • A16Z gets FTC approval for an unspecified transaction involving Coinbase

  • Uniswap users have now claimed $560m worth of UNI


Community Commentary

We agree that this is sort of a big deal…especially in the world we’re headed into
We’re posting a tweet about tweet volume hitting a year-to-date high. How meta!

A Really Big Number We Should Be Paying Attention To  

2,316

That’s the number of wrapped bitcoin (WBTC) Three Arrows Capital just minted, the largest single mint of all time.


Final Thought

Hear! Hear!