Commodity Futures Trading Commission (CFTC) Commissioner Kristin Johnson has urged Congress to adopt legislation that "closes the current gap in the oversight of crypto spot markets." During a speech at the digital assets conference at Duke University on Jan. 21, Johnson proposed a number of amendments that would enable the CFTC to conduct “effective due diligence” on businesses, including crypto firms, that want to acquire CFTC-regulated entities. The Commissioner also wants expanded powers for the commodities regulator to enhance customer protection, prevent liquidity crises, and mitigate conflicts of interest. One of these potential changes would be to give the commodities …

Texan Republican Senator Ted Cruz is pushing the United States Congress to adopt cryptocurrency within its halls using an incentive both sides might agree on — food. Cruz introduced a concurrent resolution dated Jan. 25 that would only allow vending machine and food service contractors that accept crypto as a payment option within the U.S. Capitol. If adopted, the Architect of the Capitol, the Secretary of the Senate and the Chief Administrative Officer of the House of Representatives would be required to find the crypto-accepting food and vending firms. At the time of writing the text of the resolution was …

According to sources from the U.S. Department of Justice on Jan. 26, international law enforcement groups have dismantled the infamous Hive cryptocurrency ransomware gang and recovered over 300+ decryption keys to victims since July 2022. Officials raise the example of one incident where a Hive ransomware attack on a Louisiana hospital was thwarted by law enforcement, saving the victim from a $3 million ransom payment. Ghost servers were reportedly seized Wednesday night in an international law enforcement effort to track ransom payments, seize them back to victims, and dismantle the network's infrastructure. The organization had been infiltrated by undercover agents …

An investigation into FTX’s collapse by an examiner could cost the firm upwards of $100 million without providing any benefit to creditors or equity holders, argues lawyers representing the bankrupt crypto exchange. The arguments were part of a Jan. 25 objection to a motion from the United States Trustee in December, which called for the judge to appoint an independent examiner to ensure any investigations are transparent and their findings made public. This will be fascinating. 4 Senators submitted a letter asking for an Independent Examiner. Will they do more? Several States have entered the FTX case. Will they lend …

A judge overseeing bankruptcy proceedings for crypto lending firm Celsius Network has denied motions from three users with different claims on assets stuck since July. In orders filed with United States Bankruptcy Court in the Southern District of New York on Jan. 25, Judge Martin Glenn denied a motion from Rebecca Gallagher, a Celsius claimant who argued her interest-bearing 'Earn' assets on the platform were “her property and not property of the bankruptcy estates” under the control of the debtors. The judge denied similar motions from Celsius account holders Mark Benzaken and Kulpreet Khanuja. Motions from the three individuals included …

Bankrupt crypto lending firm BlockFi has reportedly uploaded financials by accident, revealing $1.2 billion in assets tied up with bankrupt exchange FTX and Alameda Research. According to a Jan. 25 report from CNBC, the unredacted filings show that as of Jan. 14, BlockFi had $415.9 million worth of assets linked to FTX, and a whopping $831.3 million in loans to Alameda. The financials were leaked as part of a presentation put together by M3 Partners, who is an advisor to the creditor committee. The crypto lending firm filed for Chapter 11 Bankruptcy on Nov. 28, weeks after the collapse of …

Lawmakers in the Arizona State Senate are considering a bill aimed at having voters decide whether virtual currency is exempt from property taxation. In legislation introduced to the first session of the Arizona State Senate in 2023, Senators Wendy Rogers, Sonny Borrelli, and Justine Wadsack proposed having Arizona residents decide on amending the state’s constitution in regards to property taxes. Should the measure pass the legislature, voters could choose whether virtual currency — specifically not “a representation of the United States dollar” — be tax exempt in the state in November 2024. Under Arizona’s constitution, all federal, state, county and …

The approach to crypto regulatory enforcement by the United States Securities and Exchange Commission (SEC) stalled the advancement of Bitcoin (BTC) in the country, according to the CEO of Grayscale Investments. In a letter published in The Wall Street Journal on Jan. 23, the chief of the cryptocurrency asset management firm, Michael Sonnenshein, said he agreed with an assertion that the SEC was “late to the game” regarding crypto regulation and preventing the bankruptcy of FTX, adding: “‘Late’ doesn’t capture what transpired here. The problem is the Securities and Exchange Commission’s one-dimensional approach of regulation by enforcement.” Grayscale is currently …

The good news of the last week is that Bitcoin (BTC) continued to review, making around 10% up from Jan.16 to Jan. 23. But it has yet to change a worrying trend of crypto companies making headlines due to their troubles with the law. The United States Department of Justice launched a “major international cryptocurrency enforcement action” against China-based crypto firm Bitzlato and arrested its founder, Anatoly Legkodymov. The enforcers consider Bitzlato to be a “primary money laundering concern” connected to Russian illicit finance. While the exchange attracted little attention until the DOJ action, it had received $206 million from …

Amid ongoing investigations around the defunct crypto exchange FTX, the Commodity Futures Trading Commission (CFTC) questions the due diligence conducted by institutional investors and their accountability regarding the loss of users’ funds. CFTC Commissioner Christy Goldsmith Romero stated that VCs that had to write down their investments in millions of dollars to nearly zero raises “serious questions” about the due diligence conducted over the last year, speaking to Bloomberg. She raised concerns about FTX CEO John Ray’s revelations in court about not having any records and controls over the exchange’s financials. I'm glad Mr. Ray is finally paying lip service …

Chris Sununu, the governor of New Hampshire, has released the results of an investigation from a commission aimed at recommending legislation around digital assets and blockchain as part of a 2022 executive order. In a Jan. 19 announcement, Sununu said the Commission on Cryptocurrencies and Digital Assets had reported the legal and regulatory status of cryptocurrencies and digital assets was “highly uncertain,” stymying development and leading to less protection for investors and consumers. The group recommended New Hampshire establish a state legal regime aimed at drawing in blockchain firms and individuals. According to the report, sent to the governor on …

A commissioner from the Commodity Futures Trading Commission (CFTC) has called on Congress to stop allowing cryptocurrency exchanges to “self-certify” and list tokens without oversight. CFTC commissioner Christy Goldsmith Romero told an audience at a Jan. 18 University of Pennsylvania event focused on FTX that the current process wasn't adequate to ensure proper oversight, saying: “I urge Congress to avoid permitting newly-regulated crypto exchanges to self-certify products for listing, under the current process that limits CFTC oversight." "It is critical to institute guardrails against regulatory arbitrage, and that includes prohibiting the use of the self-certification process," she added. Currently, crypto …