October 29, 2024
This week decoded
While significant rulemakings were released in other areas of emerging tech policy, blockchain policy was relatively quiet this week. Rep. Richie Torres (D-NY) announced a new bill to open FedNow to nonbank remittance providers. Both the CFTC and the IRS noticed upcoming meetings to consider ongoing digital assets actions.
All eyes are on the U.S. general election next week and the subsequent, and potentially eventful, lame duck session.
(For details on the non-digital assets emerging tech rulemakings, see this week’s DC.ai decoded.)
Read more below
Congress
Hearings
- Congress is in recess until November 15.
Legislation
- Rep. Richie Torres (D-NY) announced the Affordable Remittance Act, which would mandate the Board of Governors of the Federal Reserve System to make FedNow available to nonbank remittance providers. (Press release)
Correspondence
- Rep. Summer Lee (D-PA) sent a letter to Lisa J. Stevenson, Acting General Counsel to the Federal Election Commission, urging the FEC investigate allegations from Public Citizen and researcher Molly White that Coinbase violated the Federal Election Campaign Act. (Letter)
- Senate Select Committee on Intelligence Chair Mark Warner (D-VA) sent a letter to American domain registrars identified by the Department of Justice as providing domain services to the “Doppelganger” Russian covert influence network. In the letter, Warner urges the companies to address foreign covert influence, saying, “Russian influence actors utilized a number of tactics, techniques, and procedures that – against the backdrop of extensive open source literature on Doppelganger’s practices – should have alerted your company to abuse of its services, including the use of cryptocurrency to purchase domains.” (Letters)
Biden-Harris Administration
Commodity Futures Trading Commission (CFTC)
- The CFTC announced that the Global Markets Advisory Committee (GMAC) will hold a virtual public meeting on November 21, 2024, to hear a presentation from the GMAC’s Digital Asset Markets Subcommittee on expanding use of non-cash collateral through use of distributed ledger technology. (Notice)
Internal Revenue Service (IRS), Department of the Treasury
- The Internal Revenue Service Advisory Council (IRSAC) announced a public meeting on November 20, 2024 to consider issues including “Electronic Recipient Statement for Form 1099-DA, Digital Asset Proceeds From Broker Transactions.” (Notice)
Noteworthy Quotes and Events
Congress
- Appearing on Mornings with Maria on Fox Business, Sen. Bill Hagerty (R-TN) said about stablecoin legislation, “…this builds upon some excellent work that was done in the House of Representatives. I’ve come in and made some adjustments that I think it’ll make it easier to get through both bodies [in Congress]. The impact of this, though, actually gets back to the beginning of the story that you and I talked about. You think about the efforts that Vladimir Putin and these BRICS nations undertaking to get around the United States as the reserve currency of the world. This will actually strengthen our posture as a reserve currency. It will increase demand, not only for U.S. treasuries, but also the stablecoins will increase demand for U.S. dollars on a global basis. We need the proper regulatory framework in place here in America—we need legal certainty—the Biden and Harris Administration have done everything they can to destroy that sort of legal certainty. This will begin to chip away at the Democrats’ war on cryptocurrency and put us back in the driver’s seat when it comes to maintaining the reserve currency status that the dollar has enjoyed and should continue to enjoy […] The assumption is very clear that this legislation will move through and be ripe for a new Administration.” (Press release)
- Speaking at a panel discussion on “Crypto Companies’ Unprecedented Election Spending,” Rep. Summer Lee (D-PA) said, “Crypto’s unprecedented spending isn’t just a new wave of campaign finance; it’s a direct assault on democratic representation. This money buys influence and erodes the voices of those who can’t match these millions in donations.” (Press release)
About Zero One Strategies
Zero One Strategies is a boutique government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.
The practice focuses on key areas such as artificial intelligence, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.
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