While the BCBS recommendations are intended for banks, they provide useful guidance for other market participants considering conducting activities in crypto assets. Such guidance includes assessing the risks of the proposed activities, adopting appropriate policies and procedures to address those risks and complying with relevant regulatory requirements, obtaining any required approvals from the firm's regulators, and providing any required disclosures of financial exposures generated by…
Regulators are attempting to keep up with, and respond to, the rapid growth in financial technology. Mr. Giancarlo described the effort, the SEC formed and FINRA established a initiative. While there is a question as to whether new technology requires an entirely new regulatory regime, most regulators are attempting to fit new technology into the existing regulatory framework, albeit with additional guidance as to how to apply existing concepts to new…
Commissioner Stump's initiative is a welcome acknowledgment of the legitimate concerns of industry participants regarding the scope of data collected by the CFTC, and the security measures the CFTC implements to safeguard data it collects. As the CFTC acknowledged in its , "[t]he cyber threat is persistent and ever changing. It is not a question of 'if' a cyber intrusion will occur, but 'when' it will occur." The CFTC and other regulators are increasingly focused on the measures…
Commissioner Peirce provides a nuanced analysis of the policy considerations relevant to determining how virtual currency transactions should be regulated, including the limitations of the Howey test, whether virtual currency should be treated as a separate asset class with its own regulatory framework, and the extent to which it is appropriate to rely on market forces without the need for regulatory intervention. While there is considerable merit in addressing these policy questions…
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While the BCBS recommendations are intended for banks, they provide useful guidance for other market participants considering conducting activities in crypto assets. Such guidance includes assessing the risks of the proposed activities, adopting appropriate policies and procedures to address those risks and complying with relevant regulatory requirements, obtaining any required approvals from the firm's regulators, and providing any required disclosures of financial exposures generated by…
Regulators are attempting to keep up with, and respond to, the rapid growth in financial technology. Mr. Giancarlo described the effort, the SEC formed and FINRA established a initiative. While there is a question as to whether new technology requires an entirely new regulatory regime, most regulators are attempting to fit new technology into the existing regulatory framework, albeit with additional guidance as to how to apply existing concepts to new…
Commissioner Stump's initiative is a welcome acknowledgment of the legitimate concerns of industry participants regarding the scope of data collected by the CFTC, and the security measures the CFTC implements to safeguard data it collects. As the CFTC acknowledged in its , "[t]he cyber threat is persistent and ever changing. It is not a question of 'if' a cyber intrusion will occur, but 'when' it will occur." The CFTC and other regulators are increasingly focused on the measures…
Commissioner Peirce provides a nuanced analysis of the policy considerations relevant to determining how virtual currency transactions should be regulated, including the limitations of the Howey test, whether virtual currency should be treated as a separate asset class with its own regulatory framework, and the extent to which it is appropriate to rely on market forces without the need for regulatory intervention. While there is considerable merit in addressing these policy questions…