US Senators Propose Stablecoin Laws; Canada Adopts CARF Tax Standard; Arkansas Contemplates Crypto Mining; Binance Returns to India
Summary:
US Senators Kirsten Gillibrand and Cynthia Lummis propose laws to regulate stablecoins, receiving opposition from advocacy group Coin Center for possibly being unconstitutional. Meanwhile, Canada plans to introduce the international Crypto-Asset Reporting Framework (CARF) for taxes by 2026. An Arkansas Senate committee has approved bills that can potentially impact local cryptocurrency mining. Finally, Binance, after paying a $2 million fine, prepares to return to the Indian market and obtains a license in Dubai.
Senators Kirsten Gillibrand and Cynthia Lummis from the United States have brought forward new laws to provide a legal structure for stablecoin payments. The proposed laws are designed to prevent the issuing of "unsecured, algorithmic stablecoins"—an apparent indirect mention to the 2022 depegging of TerraUSD (UST) from the U.S. currency — stipulating that issuers should uphold one-to-one reserves. The new laws would also create both federal and state regulatory systems that conserve the double banking structure.
The proposed 179-page bill permits state non-depositary trust companies to issue up to $10 billion in payment stablecoins, authorizing institutions to issue "up to any amount" under a limited-purpose state license. The proposed laws seek to maintain the current system of state and federal licenses and provide regulations for custody concerning non-depositary trust companies.
However, advocacy group Coin Center has revealed its apprehension about the bill labeling it as "bad policy" and potentially unconstitutional given its proposed prohibition on algorithmic stablecoins. Coin Center argues that an outright ban on algorithmic stablecoins focuses on coding, which may be an unconstitutional act in light of First Amendment protections.
In parallel news, Canada is prepared to implement the international Crypto-Asset Reporting Framework (CARF) for tax purposes by 2026. The new standard is expected to be adopted by 47 countries by 2027. This will introduce new reporting requirements for crypto asset service providers (CASPs) which includes crypto dealers, brokers, and crypto-asset ATM operators.
An Arkansas Senate committee has approved two bills which could impede cryptocurrency mining within its borders. The bills provide a platform for further dialogue. The legislative group will continue the conversation, listening to additional public remarks.
Lastly, Binance, the crypto exchange, is ready to re-enter India following a four-month prohibition, having paid a $2 million penalty for non-compliance. The company has also secured its Dubai Virtual Asset Service Provider (VASP) license.
Published At
4/22/2024 10:05:00 PM
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