U.S. Senate Nullifies SEC Rule, Major Bitcoin Investments in Wisconsin, Venezuela Bans Crypto Mining, Microsoft Faces EU Fine
Summary:
The U.S. Senate has passed a resolution overturning a rule requiring banks to hold digital assets with maintained capital, despite opposition from President Biden. In cryptocurrency news, the State of Wisconsin has invested significantly in Bitcoin exchange-traded funds, and Venezuela has enacted a ban on cryptocurrency mining to manage excessive energy consumption. Plus, tech giant Microsoft faces a potential multi-billion-dollar fine in the EU over a data request related to its Bing search engine's AI features.
In a tight decision with a 60 to 38 outcome, U.S. Senators sanctioned H.J. Res. 109, a decree overturning the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin No. 121. The regulation from the commission compels banks to record clients' digital assets in their financial statements, supported by capital — a provision that various legislators and industry figures have condemned as hindering progress. "This substantial 60 'yes' vote count in the Senate is a compelling indication of disapproval of this ruling by both Congressional houses, irrespective of political differences," the crypto proponent group, the Blockchain Association, declared. Yet before the House of Representatives ratified the decree, President Joe Biden declared his potential veto of the bill, aiming to "safeguard crypto-asset investors and protect the larger financial system." However, Perianne Boring, founder and chief executive officer of the Blockchain Trade Association Digital Chamber, maintains the backing from 21 Democratic Party senators might compel the White House to "rethink its approach and stance." As per her view, "the wind is shifting for crypto in Washington." The Biden administration could encounter pressure not merely politically but also from the crypto community, which is fervently urging Biden to approve H.J. Res. 109. The American Bankers Association publicly advocated for "President Biden to swiftly sign this decree into law, aiding in the defense of American consumers."
The State of Wisconsin Investment Board (SWIB) disclosed investments in on-demand Bitcoin (BTC) ETFs from Grayscale and BlackRock. The governmental entity tasked with stewarding the state's trust funds revealed it owned over 2.4 million shares in BlackRock's iShares Bitcoin Trust and over 1 million in Grayscale's Bitcoin Trust, valued at about $100 million and $64 million, respectively. As of December 2023, SWIB managed over $156 billion in assets, about half of which were public equity investments. Other allocations included Coinbase, MicroStrategy, and CleanSpark stock shares.
Venezuela's Ministry of Electric Power is planning to disconnect cryptocurrency mining farms from the national power grid. The initiative aims to control high energy use and ensure a stable power supply for the population. The National Association of Cryptocurrencies in Venezuela has reported that crypto mining is now banned in the country. This follows a recent crackdown involving the seizure of 2,000 cryptocurrency mining devices in Maracay as part of an anti-corruption campaign. The ministry highlights the necessity to provide a reliable power supply across the country by alleviating the burden caused by these energy-hungry farms. As per officials, these steps are critical to stabilize the national power supply, which has been unstable for the past ten years.
Microsoft could face a fine equivalent to 1% of its yearly EU revenue if it fails to respond to an information request by May 27 under the EU's Digital Services Act. The request is related to Microsoft's Bing search engine and its associated generative AI services. The European Commission commanded Microsoft to "supply information under the Digital Services Act regarding generative AI risks on Bing." The commission clarified that the initial request was sent on May 14, and it pertained to particular risks posed by Bing's generative AI features such as "Copilot in Bing" and "Image Creator by Designer.
Published At
5/20/2024 10:05:00 PM
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