On the heels of the Department of Labor rescinding its prior guidance disavowing cryptocurrencies in 401(k) plans due to volatility, FINRA has taken the opposite tack. FINRA’s censure here is sensible on paper—certain disclosure requirements were not met, and that’s the end of the case.

It’s clear that FINRA is still keen on enforcing its rules with regard to digital assets, but this AWC also hints at some of the murkiness surrounding cryptocurrencies and broker-dealers at present.…

Crypto is, understandably, a centerpiece of much of this debate—particularly with a focus on innovation. New technologies inevitably strain pre-existing regulatory structures, just as crypto is doing now.

Looking at the crypto regulatory landscape at present, there’s a balance to be struck between enforcement, rulemaking, and innovation. This appears to be the position of Chair Atkins who promotes a more pro-innovation posture without abdicating core responsibilities of the…

The CRS raises valid questions: what do we do with foreign issuers? Are the reserve requirements enough? How is AML compliance to be handled. (Understandably, the run risk concerns exist in the wake of the Luna/Terra algorithmic stablecoin collapse a few years back. Stricter reserve requirements, which both bills would require are certainly welcome.) It is notable that the CRS discussion omits any analysis on the prohibition on yield-bearing stablecoins. Given that the report provides that…

Over the weekend, there was (and continues to be) some debate around the GENIUS Act. Senator Ruben Gallego and nine other senators that they could not support the updated GENIUS Act—text we are yet to see—unless concerns regarding anti-money laundering, foreign issuers, national security, and general accountability were addressed by revisions.

These issues are interesting given discussions around what would happen to Tether should the GENIUS Act be passed in its current form. Tether…