Hodder Law Weekly Newsletter - April 21, 2023
Hello everyone, I hope you are all having a great week! The price of Bitcoin as of Friday, April 21 at 4:10 p.m. EST is $27,304.
U.S. SEC views decentralized crypto platforms as exchanges, seeks public input. After criticism from crypto firms, the SEC voted 3-2 to reopen the public comment period for 30 days on its proposal to expand the definition of a securities exchange. The proposal would classify DeFi platforms as exchanges in a move that SEC Commissioner Hester Peirce said would “force centralization and undercut new technologies” and “solve problems that do not exist."
How OFAC’s Tornado Cash sanctions violate U.S. citizens’ constitutional rights. This case could set a dangerous precedent paving the way for future sanctions against open-source encryption protocol and financial privacy. Blockchain Association and DeFi Education Fund filed a friend of the court brief to help argue why privacy in the digital realm should be protected as a fundamental right. After eight months, the founder was finally released from Dutch prison without being formally charged.
U.S. House Committee publishes draft stablecoin bill. The bill proposes placing a moratorium on stablecoins until a study can be conducted. Also proposed in the bill is to study the impact of a CBDC issued by the Federal Reserve. This is the first major piece of crypto legislation this year and is available on the committee’s hearing page.
Marathon Digital CEO: Bitcoin mining bill 'won’t change our minds about Texas'. Although the proposed bill would cut into benefits offered to Bitcoin miners in Texas, things are still going very well for Bitcoin in Texas. Canadian mining company Hut 8, merging with U.S. Bitcoin Corp also plans on expanding to the Lone Star State.
Bitcoin Policy UK launches with the goal of capturing Bitcoin's opportunity for the UK. With the new Prime Minister of the UK, Rishi Sunak, apparently open to crypto, this Bitcoin advocacy group has an excellent opportunity to help transform the nation. Their website bitcoin policy. UK lays out its plans to bring together policymakers, environmentalists, businesses, and energy producers to use Bitcoin technology to help support UK households.
Sweden drives final nail into its Bitcoin mining industry with huge tax hike. A 6,000% increase in taxes per kilowatt hour could be a fatal blow to the Swedish Bitcoin mining industry. The rising price of energy throughout Europe caused by the war in Ukraine is driving Bitcoin miners away from the continent and opening up opportunities in other parts of the world.
SEC Chairman Gary Gensler caught shilling Algorand, now deems it a security. Despite his ardent anti-crypto stance at the SEC, Gensler has spoken highly of Algorand at public events since 2019. Although the SEC has come down hard on those promoting crypto securities without disclosure, many now question just how involved Gensler has been with the Algorand project, and if he could be investigated.
America’s largest Bitcoin exchange is considering leaving the country. Coinbase has serious concerns about regulatory clarity in the U.S., which could take them overseas. Although many State governments are supportive of crypto in the U.S., other States and also the Federal Government have been outright hostile and unpredictable.
Hodder Law Firm's comments submitted to the SEC last year about the expansion of the Exchange Act were cited in by the SEC in its decision to reopen the comment period (Footnote 19).
Setting goals is the first step in turning the invisible into the visible” – Tony Robbins
Make it a great week!