This morning, the Financial Action Task Force (FATF) released its “Updated Guidance for a Risk-Based Approach to Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs).” This blog post will summarize key takeaways from this guidance and posit potential implications that it might have for industry. Context and Background: The…

The inherent qualities of cryptocurrencies are desirable for any payment system. They allow for peer-to-peer transfer of value online; they are available 24 hours a day/7 days a week; and they facilitate an almost instantaneous transfer of value. The only problem with this novel asset class is most cryptocurrencies fluctuate…

On July 27, 2021, Marta Belcher, Board Chair of the Filecoin Foundation, testified before the Senate Committee on Banking, Housing and Urban Affairs, chaired by Senator Sherrod Brown. Ms. Belcher’s testimony focused on answering the central question posed in the hearing: “What are cryptocurrencies good for?” Her answer primarily focused…

Yesterday, the Blockchain Association submitted a letter in response to the Federal Reserve’s request for comment on the establishment of guidelines for the review of banks’ requests for access to Fed master accounts and related services. The BA welcomes the Fed’s effort to establish a principles-based framework for the review…

Today, the Blockchain Association submitted a response to the Financial Action Task Force’s (FATF) Draft Updated Guidance that seeks to address potential illicit activity in the decentralized financial ecosystem. The Blockchain Association fears that the guidance’s approach to addressing these risks would be ineffective. At the same time, if implemented…

This week, the Blockchain Association submitted an additional comment letter in response to the Notice of Proposed Rulemaking (the “NPRM”) titled “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets.” In its response, the Association advocated for a recordkeeping requirement instead of FinCEN’s proposed reporting requirement. Transparent blockchains…

The environmental effects of cryptocurrency mining are hotly debated. One can find articles arguing that the energy consumption of mining cryptocurrencies is not dangerous for Earth’s climate, but one can find just as many articles arguing that the energy used for mining cryptocurrencies will wildly exacerbate global warming and climate…

Last month represented a major breakthrough for the future of the cryptocurrency economy: the Office of the Comptroller of the Currency (OCC) approved the conversion of Anchorage Trust Company, chartered in South Dakota, to become Anchorage Digital Bank National Association, a federally chartered trust company. Anchorage’s receipt of this national…

Today, the Blockchain Association submitted a comment letter urging the Department of Treasury (Treasury) to extend the comment period for its notice of proposed rulemaking (NPRM) entitled “Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets.” …