A group of five senators in the United States has united against President Joe Biden’s plans to introduce a “digital dollar” by introducing legislation calling for a ban on central bank digital currencies (CBDCs). Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun have co-signed the CBDC Anti-Surveillance State Act, which challenges the Federal Reserve’s authority to implement a CBDC. The bill specifically opposes the Federal Reserve’s ability to offer certain products or services directly to individuals, prohibits the use of CBDCs for monetary policy, and serves other purposes.
Meanwhile, the U.S. House Financial Services Committee (HSFC) has voted in favor of a resolution that aims to overturn a guideline from the U.S. Securities and Exchange Commission (SEC) that has prevented banks from providing crypto custody services. The SEC’s Staff Accounting Bulletin No. 121, introduced in March 2022, requires institutions that custody crypto assets to record them as liabilities on their balance sheets. The HSFC stated in a press release that by overturning this guideline, the resolution will protect consumers by removing obstacles that prevent highly regulated banks from acting as custodians of digital assets.
SEC Commissioner Hester Peirce, also known as “Crypto Mom,” believes that the United States needs less centralization and softer regulation. Speaking at the ETHDenver conference, Peirce emphasized that decentralization brings resilience and strength to the financial system. She noted that the concept of decentralization contrasts with the SEC’s usual approach. Peirce also discussed various crypto-related topics, including the agency’s future after the 2024 U.S. presidential election, spot Bitcoin exchange-traded funds (ETFs), CBDCs, and the potential for state financial surveillance.
In Indonesia, the Commodity Futures Trading Regulatory Agency (Bappebti) has requested that the Ministry of Finance reassess the country’s cryptocurrency taxation policies. Bappebti’s executive staff members have asked for a review of the government-imposed 0.11% value-added tax on each crypto transaction and the 0.1% income tax on crypto. The head of the Bureau of Market Development and Development at Bappebti, Tirta Karma Senjaya, explained that this reassessment is necessary because crypto is expected to become a significant part of Indonesia’s economy in the near future. In January, the total government revenue from crypto taxes in Indonesia was approximately $2.49 million. Senjaya believes that these taxes should undergo an annual review, similar to other tax laws.
The Nigerian government has denied the existence of a $10 billion fine for crypto exchange Binance. Bayo Onanuga, a special adviser to the Nigerian president on information and strategy, stated that the allegations reported by the BBC were a result of misquotation. Onanuga clarified that he did not say Binance was informed about the fines or that the amount would be $10 billion. He only mentioned the possibility of a fine, as nothing has been finalized yet. This comes as crypto exchanges face increased regulatory scrutiny in Nigeria, with several platforms recently banned to protect the country’s national currency, the Nigerian naira. Binance has also removed the naira from its peer-to-peer (P2P) service amid the crackdown on the crypto exchange.
South Korea’s ruling People Power Party has indefinitely postponed its proposal to ease cryptocurrency restrictions, including lifting the ban on local spot Bitcoin ETFs. The party’s reversal of its pledges may be due to challenges in aligning with the government and financial authorities on cryptocurrency policies. The party had previously planned to delay taxing crypto profits and allow domestic institutions to introduce spot Bitcoin ETFs and invest directly in cryptocurrencies. However, virtual assets have been removed from the party’s policy priorities, and the announcement of a virtual asset pledge has been postponed indefinitely. Meanwhile, the opposition Democratic Party has officially announced its crypto campaign promises, which reportedly include similar pledges regarding crypto ETFs.