Joe Biden, the President of the United States, has rejected a resolution that aimed to overturn the U.S. Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) No. 121. In his official response to Congress, Biden expressed concerns about the potential impact of reversing the SEC’s accounting guidelines for cryptocurrency. The guidelines require institutions that hold crypto assets to record them as liabilities on their balance sheets. Despite receiving criticism from the crypto community and lawmakers, the guidelines were set to take effect on April 11. However, the House of Representatives voted to repeal the SEC’s guidance, followed by the Senate, resulting in a significant margin in favor of repeal. The Blockchain Association, a crypto advocacy group, expressed disappointment in Biden’s decision, stating that it went against the bipartisan majorities in Congress. U.S. Senator Cynthia Lummis criticized Biden for going against the “will of the American people” by preventing the guidelines from being revoked.
In another development, Israel is accelerating the development of its central bank digital currency (CBDC), known as the digital shekel. The Bank of Israel (BoI) plans to collaborate with various service providers to create an advanced digital payments ecosystem centered around the digital shekel. The BoI’s project, named Rosalind, is a joint experiment with the Bank for International Settlements (BIS) and the Bank of England. Its objective 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, utilizing a sandbox environment and an API layer.
Meanwhile, Paraguay is cracking down on crypto mining activities. The National Electricity Administration (ANDE) seized a property with 2,738 crypto mining units in Salto del Guairá after detecting an illegal power connection. A bill to ban crypto mining and other crypto-related activities is currently before the country’s senate, awaiting comprehensive legislation and assurances from the national power supplier. ANDE used artificial intelligence and power distribution analysis to identify the electricity theft, estimated to be worth $146,000 per month. The operators of the illegal operation may face criminal charges. Similar actions against illegal crypto farms have also been carried out in Paraguay, involving multiple agencies, including the National Police.
Lastly, Hong Kong has taken action against unlicensed crypto exchanges. All cryptocurrency exchanges that have not applied for an operational license with the Securities and Futures Commission (SFC) of Hong Kong are required to cease operations immediately. This move aims to minimize risks for investors. Hong Kong regulators provided a clear ultimatum to crypto exchanges, giving them until February 29 to apply for a license or shut down within three months. More than 22 exchanges applied for licenses during this period, but many withdrew their applications just before the deadline. Gate.HK, a Hong Kong-based exchange, cited the need for a significant overhaul of its trading platform to comply with regulatory requirements as the reason for withdrawal.