The resolution to overturn the U.S. Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 121 has been vetoed by President Joe Biden. In response to Congress voting to repeal the cryptocurrency accounting guidelines, Biden expressed concern that overturning the SEC staff’s judgment could undermine the SEC’s authority in accounting practices. The guidelines, which required institutions holding crypto assets to record them as liabilities on their balance sheets, faced opposition from the crypto community and lawmakers. The House of Representatives voted to repeal the guidance, and the Senate followed suit. The Blockchain Association criticized Biden’s decision, stating that it disregarded the bipartisan majority in Congress. Senator Cynthia Lummis argued that Biden went against the will of the American people by intervening and preventing the guidelines from being revoked.
Israel is expediting the development of its central bank digital currency (CBDC), the digital shekel. The Bank of Israel plans to collaborate with various service providers to create an advanced digital payments ecosystem centered around the digital shekel. The project, called Rosalind, is a joint experiment between the Bank for International Settlements (BIS) and the Bank of England. Its goal is to develop prototypes for an application programming interface (API). Participants in the project will compete to build real-time CBDC payment systems for the general public.
Paraguay continues its crackdown on crypto mining, as property with 2,738 crypto mining units was seized in Salto del Guairá. The National Electricity Administration (ANDE) discovered an unmetered power connection in the area, leading to the seizure. A bill to ban crypto mining and other crypto-related activities is currently before the country’s senate. ANDE used artificial intelligence and power distribution analysis to identify the electricity theft, estimating its value at 1.1 billion guarani ($146,000) per month. Criminal charges may be brought against the operators of the illegal operation. Similar actions against illegal crypto farms have taken place in Paraguay in recent months.
Hong Kong has mandated that all cryptocurrency exchanges without an operational license from the Securities and Futures Commission (SFC) must cease operations immediately. In an effort to protect investors, Hong Kong regulators issued a clear ultimatum to cryptocurrency exchanges: either apply for a license by February 29 or shut down within three months. Over 22 cryptocurrency exchanges applied for licenses during this period, but many decided to withdraw their applications just before the deadline. Gate.HK, a Hong Kong-based exchange, cited the need for a major overhaul of its trading platform to comply with regulatory requirements as the reason for withdrawing its application.