Regulations Roundup: Crypto-Intermediaries in France, SEC Deadline for Rejected ETF Commentary
In recent news pertaining to cryptocurrency regulations, French lawmakers are considering a proposed amendment that would introduce a regulatory framework for crypto-asset intermediaries; the U.S. Securities and Exchange Commission (SEC) has announced October 26th as the deadline for the submission of public comments relating to the nine exchange-traded funds (ETFs) it recently rejected; and a U.S Commodity Futures Trading Commission (CFTC) cryptocurrency subcommittee has sparked debate surrounding self-regulation in the cryptocurrency industries.
France Contemplates Regulations for Crypto-asset intermediaries
France is contemplating introducing legislation that would enforce a regulatory framework specifically governing the operations of crypto-asset intermediaries.
According to Mondaq, if passed, the proposed amendment will “add a new category of investment services providers to the French Monetary and Financial Code (MFC), referred to as crypto-asset services providers, which would be subject to either mandatory or optional requirements.”
“Crypto-asset services” are broadly defined as encompassing traditional investment services performed in relation to crypto-assets.
The draft legislation proposes enforcing a mandatory regulatory framework for “cryptographic keys custodians and fiat/crypto exchanges, however, also states that all crypto-asset services providers will be allowed to request a non-mandatory license delivered by the Autorit? des March?s Financiers (AMF).”
SEC Sets October 26th as Deadline for Public Comment on Rejected ETFs
The U.S. SEC has set October 26th as the deadline for public commentary pertaining to the nine cryptocurrency exchange-traded funds that it rejected on the 22nd of August.
An “Order Scheduling Filing of Statements on Review” authored by SEC assistant secretary, Eduardo A. Aleman states that “It is further ordered that the order disapproving [the ETFs] shall remain in effect pending the Commission’s review.”
The rejected ETFs were pursued by Proshares, Graniteshares, and Direxion, with the SEC citing concerns pertaining to market manipulation.
Last month, the SEC published an “order instituting proceedings to determine whether to approve or disapprove a proposed rule change to list and trade shares of Solidx bitcoin shares issued by the Vaneck Solidx Bitcoin Trust,” with the regulator also requesting further public comments regarding the proposed ETF.
Self-Regulation Discussed at CFTC Crypto Subcommittee Meeting
The U.S. CFTC’s Technology Advisory Committee (TAC) subcommittee on cryptocurrency held a meeting on Friday intended to “spur further discussion about how the CFTC, other regulators, spot platforms, and market participants can all contribute to enhancing this market’s credibility and safety,” according to CFTC commissioner Brian Quintenz.
Richard Gorelick, head of market structure at DRW Holdings, suggested that “smart regulation” should be balanced alongside self-regulatory efforts from within the cryptocurrency industries, stating: “One of the points we raised on the subcommittee was that there is an opportunity for industry organized efforts to help fill some of these gaps. They could be self-regulatory organizations or similar structures that help to define and enforce best practices and standards and accountability across the industry and there are efforts underway to start thinking about and building these types of organizations.”
“There are lots of precedents in the traditional financial markets that we can look to for innovative governance structures that apply with markets that touch multiple jurisdictions,” he added.
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