SEC vs CFTC: The battle for crypto regulatory control

PLUS: India now requires crypto companies to KYC users

Author

Daniel Akpobare
March 09, 2023

GM, this is The Crypto Xplorer, where the adventures never stop and the coins never sleep!

So hold on tight to your wallets, because things are about to get a little wild and wacky.

Here's what we got for you today:

  • SEC vs CFTC: Battle for control of the crypto industry

  • Silvergate Bank to wind down operations

  • India tightens regulations on crypto businesses

SEC vs CFTC: Battle For The Regulatory Control Of The Crypto Industry

The United States Commodity Futures Trading Commission (CFTC) chairman, Rostin Behnam has reiterated that Stablecoins and Ether should be considered commodities and fall under the CFTC’s purview at the Senate Agricultural hearing yesterday.

When asked what evidence the CTFC has to support its position, he replied:

"We wouldn't have allowed Ether futures products to be listed on CFTC exchanges if we didn't feel strongly that it was a commodity asset. We have litigation risk, we have agency credibility risk if we do something like that without serious legal defenses to support our argument that the asset is a commodity.”

Rostin Behnam (CFTC Chairman)

You can watch him answer the question in the tweet below:

Behnam's opinion on Ether's classification has been wobbly in the past, but it looks like he's finally made up his mind.

Meanwhile, the SEC claims everything but Bitcoin is a security. The differing views could set the stage for a regulatory conflict in the crypto industry.

Leaving us to wonder if this is just a case of siblings fighting over who gets to play with the cool new toy, it might get ugly. 😬

Silvergate Bank To Wind Down Operations

Who would have thought, I guess even banks can only handle so much pressure before calling it quits. 🤷‍♂️

If you have any money in Silvergate Bank, they’ve promised to repay all deposits. They said they’re just looking for the best way to do that while preserving the residual value of their assets.

This is just a fancy way of saying: “Yes, we’ll give you your money… but it’s gonna take a looooonnnggg time." ⏳

Meanwhile, Senator Elizabeth Warren took to Twitter and wrote a very beautiful “I told you” tweet:

I can just imagine her sitting at her desk, typing away furiously on her phone with a smug grin on her face. "Ha! I knew it all along!" 😂

India: Crypto Companies Must Now KYC Users

India's finance minister has gone full “mom mode” on crypto companies, requiring they comply with the general rules of the financial sector ASAP.

(I mean, if anyone knows how to keep you in line, it’s your mom, right?). 😂

Crypto companies in India will have to:

  • Supply KYC details (upon request from officials)

  • Report suspicious transactions

  • Maintain reporting standards to sync with other entities (such as banks and payment system operators).

Anyone who doesn’t comply will be either fined or jailed! 🚨

(Kinda like when your mom threatens to ground you if you didn't clean your room. Except in this case, it’s pretty serious!)

The crypto landscape in India hasn’t been friendly, the government collects a 30% tax on crypto profits and another 1% tax deducted at source.

Some are saying at least we now know which types of checks the government wants. 🤷‍♂️

That's all we have for today. See you on Twitter if you're there: @danielakpobare

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.

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