Iris Coleman February 1st, 2025 18:21
Check out the recent encryption policy, including Tornado Cash Sanctions and SEC staff accounting 121. Understand the impact on the cryptographic industry.
According to A16Z Crypto, recent developments in recent encryption policy environments have caused great interest in continuous legal procedures, including changes in the accounting guidelines of the SEC SEC of Tornado Cash and Crypto Custodians.
TORNADO CASH: Updated legal procedures
A significant update from the US District Court in the Western Texas area has attracted attention in the process of conducting tornado cash. The incident was initially approved by the US Treasury in 2022 for suspicion of money laundering, including revenue from Cyberhacking in North Korea, has seen various developments. In November 2024, the Fifth District Appeal Court ruled that the Ministry of Finance had exceeded its authority and returned the lawsuit to the District Court to determine the rescue measure.
District Court in Texas is now preparing to resume legal procedures. Despite the media reports suggesting a reversal of sanctions, sanctions continue to be valid until a new court order is issued. The results of the lawsuit may have a wide range of meanings, especially in consideration of similar advanced litigation and the possibility that the lawsuit may reach the Supreme Court.
SEC withdraws staff accounting bulletin 121
In another major policy change, the SEC has withdrawn the staff accounting 121, which had previously requested that a business entity that protects the customer encrypted assets to report as a debt. The effective command from April 2022 has faced important opposition from policy proprietors who claimed that it was too much.
With the issuance of staff’s accounting No. 122, Castdian has now been able to apply standard accounting principles, reflecting the essence of custody arrangements, rather than estimating debt. This change is expected to be more financially executed in order for the bank to gain the right to custody without an additional debt burden.
The abolition of SAB No. 121 will continue to be a super -party parliamentary effort to overturn the rejected bulletin by President Biden in May 2024. The new guidance matches the industrial demands that require appropriate regulations rather than prevent innovation.
Presidential Ordinance on Digital Financial Technology
President Trump has recently issued a Presidential order to strengthen US leadership in digital financial technology. This order emphasizes the importance of digital assets and blockchain technology in promoting innovation and economic growth. We also propose a national digital asset stockpiling that may potentially procure from cryptocurrencies seized through law execution initiatives.
The Presidential Ordinance emphasizes the government’s commitment to support the responsible development and use of digital technology, and sets further regulations.
The update of these policies shows important steps in the regulatory environment in which cryptocurrency evolves, which has a significant impact on the entire industry. Stakeholders recommend providing information while these developments are being developed.
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