#regulation

Today, the Federal Reserve Bank of Philadelphia held its seventh annual fintech conference. A significant takeaway was Deputy Chair Michael Barr's pronounced concerns about the risks stablecoins, devoid of federal oversight, might pose to financial stability. On the topic of CBDCs, Barr remarked that decisions remain on the distant horizon.

Narendra Modi speaks in favor of an integrated approach to new technologies. As tech progress accelerates, he advises the global community to establish wide-reaching rules and a collective strategy. "At the same time, the rules, regulations, and framework around it should not belong to one country or a group of countries. So not only crypto, but all emerging technologies need a global framework and regulations," highlighted India's Premier.

Crypto miners in the U.S. have initiated the Digital Energy Council to lobby for miner-friendly policies amidst ongoing crypto regulation debates. The council aims to advocate for sustainable energy development, grid resilience, U.S. competitiveness, and national security. This move comes as President Joe Biden's administration proposes a 30% excise tax on mining operations, citing societal harms. Additionally, Democratic lawmakers criticize miners for environmental concerns.

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has released a final regulatory framework for single-currency stablecoins (SCS) under its regulation. MAS stated that the framework’s goal is to guarantee “a significant level of value stability” for stablecoins. This framework will be applicable to all stablecoins tied to the Singapore Dollar or any other G10 currency issued within Singapore.

The Bank for International Settlements (BIS) has published new findings. These suggest that, far from offering economic relief, cryptocurrencies might be escalating financial vulnerabilities in emerging economies. Many are tempted to view the digital assets as an alternative to the typical monetary systems or a stand-in for local currencies. However, the study's authors caution that this perspective might elevate the financial risks these nations face. While the report does highlight the transformative potential of cryptocurrencies, the BIS insists that effective regulation is vital to steer their advantages in a beneficial direction.

US House Financial Services Committee members, led by Chair Patrick McHenry, are seeking clarity from the SEC and FINRA about how Prometheum secured a special purpose broker-dealer (SPBD) license. They're probing if the SEC used Prometheum as a model firm to support Gary Gensler's stance that existing laws suffice for crypto regulation in the U.S. Despite Prometheum's claims of being pivotal for regulated digital asset offerings, the lawmakers pointed out that the firm hasn't served any customers yet. Also they raised concerns about potential ties between Prometheum and the Chinese Communist Party. The committee has requested related documents and communication records by Aug. 22.