Regulatory

Crypto Regulatory Update

BitOoda Regulatory Analysis, 12/14/23

Tom Nath

Key Takeaway #1

The Digital Asset Anti-Money Laundering Act has bi partisan support, and generally seeks to impose traditional AML/BSA standards across on-chain digital asset service providers, including miners.

Key Takeaway #2

Google released an update to its crypto ad policy, potentially paving the way for Bitcoin spot ETFs to advertise on the platform once the SEC approves the product.

Key Takeaway #3

California DFPI requested comments regarding certain aspects of the DAFL, under which DFPI is tasked with implementing the new California licensing regime.

Key Takeaway #4

Extending BSA/KYC requirements to digital asset wallet providers, miners, validators, and other network participants that may validate, secure, or facilitate digital asset transactions.

As the end of the year approaches, the crypto regulatory landscape in the US continues to evolve. While much of the news in recent months has centered around the prospect of the SEC approving a Bitcoin spot ETF, both federal and state legislators and regulators continue to push for new rules that could significantly impact a number of different players within the crypto ecosystem.

Senator Warren Announces Five New Co-Sponsors on the Digital Asset AntiMoney Laundering Act

On December 11, Senator Warren announced new support for Digital Asset Anti-Money Laundering Act (the “Act”), which Warren introduced by in July. The Act has bi-partisan support and generally seeks to impose traditional AML/BSA standards across on-chain digital asset service providers, including miners. The key features of the bill include:

• Extending BSA/KYC requirements to digital asset wallet providers, miners, validators, and other network participants that may validate, secure, or facilitate digital asset transactions.

• Requiring banks and money service businesses (MSBs) to verify customer and counterparty identities, keep records, and file reports in relation to certain digital asset transactions involving unhosted wallets or wallets hosted in non-BSA compliant jurisdictions.

• Requiring US persons engaged in a digital asset transaction with a value greater than $10,000 through offshore accounts to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS.

While the likelihood of this bill passing is low, it is notable that the bill continues to attract support from members of the Senate.

Premium Content

Unlock exclusive insights with our cutting-edge digital finance platform. Gain access to next-gen data analytics and digital asset products crafted with applied science. Subscribe now to stay ahead of the curve.

Research and Consulting
Investment Banking and Advisory
Sales and Origination
HPC and Power Advisory

Request Access Now!

As the end of the year approaches, the crypto regulatory landscape in the US continues to evolve. While much of the news in recent months has centered around the prospect of the SEC approving a Bitcoin spot ETF, both federal and state legislators and regulators continue to push for new rules that could significantly impact a number of different players within the crypto ecosystem.

Senator Warren Announces Five New Co-Sponsors on the Digital Asset AntiMoney Laundering Act

On December 11, Senator Warren announced new support for Digital Asset Anti-Money Laundering Act (the “Act”), which Warren introduced by in July. The Act has bi-partisan support and generally seeks to impose traditional AML/BSA standards across on-chain digital asset service providers, including miners. The key features of the bill include:

• Extending BSA/KYC requirements to digital asset wallet providers, miners, validators, and other network participants that may validate, secure, or facilitate digital asset transactions.

• Requiring banks and money service businesses (MSBs) to verify customer and counterparty identities, keep records, and file reports in relation to certain digital asset transactions involving unhosted wallets or wallets hosted in non-BSA compliant jurisdictions.

• Requiring US persons engaged in a digital asset transaction with a value greater than $10,000 through offshore accounts to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS.

While the likelihood of this bill passing is low, it is notable that the bill continues to attract support from members of the Senate.

Google Updates Its Crypto Advertisement Policy to Permit Ads for “Cryptocurrency Coin Trusts”

On December 6, Google released an update to its crypto ad policy, potentially paving the way for Bitcoin spot ETFs to advertise on the platform once the SEC approves the product. The terms provide that as of January 2024, advertisers offering “financial products that allow investors to trade shares in trusts holding large pools of digital currency” may advertise in the US on the platform.

California DFPI Publishes Request for Comment Related to new California “BitLicense” Rules

On November 20, the California Department of Financial Protection and Innovation (“DFPI”) requested comments regarding certain aspects of the Digital Asset Finance Law, under which DFPI is tasked with implementing the new California crypto licensing regime. DFPI is seeking comments on the information it should request in the licensing process, capital requirements for licensees, and how to evaluate stablecoin proposals.

We at BitOoda will continue to monitor and provide insight on developments in the US crypto regulatory landscape, which we expect will continue to evolve at a moderate pace in 2024 as the US presidential election approaches and Congress remains relatively actionless in terms of pursuing a meaningful comprehensive legislative framework.

Disclosures

Purpose This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda .io. Analyst Certification Tom Nath, the research analyst denoted by an “AC” on the cover of this report, hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships. Conflicts of Interest This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation. General Disclosures Any information (“Information”) provided by BitOoda Holdings, Inc., BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or through http ://www.bitooda.io/, including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using services. BitOoda its brokerage makes no representations or warranties (express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information. The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance. All derivatives brokerage is conducted by Ooda Commodities, LLC a member of NFA and subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. BitOoda Technologies, LLC is a member of FINRA. “BitOoda”, “BitOoda Difficulty”, “BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc. Copyright 2023 BitOoda Holdings, Inc. All rights reserved. No part of this material may be reprinted, redistributed, or sold without prior written consent of BitOoda

As the end of the year approaches, the crypto regulatory landscape in the US continues to evolve. While much of the news in recent months has centered around the prospect of the SEC approving a Bitcoin spot ETF, both federal and state legislators and regulators continue to push for new rules that could significantly impact a number of different players within the crypto ecosystem.

Senator Warren Announces Five New Co-Sponsors on the Digital Asset AntiMoney Laundering Act

On December 11, Senator Warren announced new support for Digital Asset Anti-Money Laundering Act (the “Act”), which Warren introduced by in July. The Act has bi-partisan support and generally seeks to impose traditional AML/BSA standards across on-chain digital asset service providers, including miners. The key features of the bill include:

• Extending BSA/KYC requirements to digital asset wallet providers, miners, validators, and other network participants that may validate, secure, or facilitate digital asset transactions.

• Requiring banks and money service businesses (MSBs) to verify customer and counterparty identities, keep records, and file reports in relation to certain digital asset transactions involving unhosted wallets or wallets hosted in non-BSA compliant jurisdictions.

• Requiring US persons engaged in a digital asset transaction with a value greater than $10,000 through offshore accounts to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS.

While the likelihood of this bill passing is low, it is notable that the bill continues to attract support from members of the Senate.

Google Updates Its Crypto Advertisement Policy to Permit Ads for “Cryptocurrency Coin Trusts”

On December 6, Google released an update to its crypto ad policy, potentially paving the way for Bitcoin spot ETFs to advertise on the platform once the SEC approves the product. The terms provide that as of January 2024, advertisers offering “financial products that allow investors to trade shares in trusts holding large pools of digital currency” may advertise in the US on the platform.

California DFPI Publishes Request for Comment Related to new California “BitLicense” Rules

On November 20, the California Department of Financial Protection and Innovation (“DFPI”) requested comments regarding certain aspects of the Digital Asset Finance Law, under which DFPI is tasked with implementing the new California crypto licensing regime. DFPI is seeking comments on the information it should request in the licensing process, capital requirements for licensees, and how to evaluate stablecoin proposals.

We at BitOoda will continue to monitor and provide insight on developments in the US crypto regulatory landscape, which we expect will continue to evolve at a moderate pace in 2024 as the US presidential election approaches and Congress remains relatively actionless in terms of pursuing a meaningful comprehensive legislative framework.

Disclosures

Purpose This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda .io. Analyst Certification Tom Nath, the research analyst denoted by an “AC” on the cover of this report, hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships. Conflicts of Interest This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation. General Disclosures Any information (“Information”) provided by BitOoda Holdings, Inc., BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or through http ://www.bitooda.io/, including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using services. BitOoda its brokerage makes no representations or warranties (express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information. The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance. All derivatives brokerage is conducted by Ooda Commodities, LLC a member of NFA and subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. BitOoda Technologies, LLC is a member of FINRA. “BitOoda”, “BitOoda Difficulty”, “BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc. Copyright 2023 BitOoda Holdings, Inc. All rights reserved. No part of this material may be reprinted, redistributed, or sold without prior written consent of BitOoda

Related Research

Premium

Free

Crypto Regulatory Update

BitOoda Regulatory Analysis, 12/14/23

Key Takeaway #1

Key Takeaway #2

Key Takeaway #3

Key Takeaway #4

Senator Warren Announces Five New Co-Sponsors on the Digital Asset AntiMoney Laundering Act

Premium Content

Table of contents

Research By

Senator Warren Announces Five New Co-Sponsors on the Digital Asset AntiMoney Laundering Act

Google Updates Its Crypto Advertisement Policy to Permit Ads for “Cryptocurrency Coin Trusts”

California DFPI Publishes Request for Comment Related to new California “BitLicense” Rules

Disclosures

Table of contents

Research By

Senator Warren Announces Five New Co-Sponsors on the Digital Asset AntiMoney Laundering Act

Google Updates Its Crypto Advertisement Policy to Permit Ads for “Cryptocurrency Coin Trusts”

California DFPI Publishes Request for Comment Related to new California “BitLicense” Rules

Disclosures

Related Research

Implications of a China-Taiwan War: Microchip Supply & Dollar Dominance

SEC Considers Permitting Listed Options on Bitcoin ETFs

New Crypto Reporting Requirement Takes Effect; NYDFS Settles Action vs. Crypto Market Maker