Weekly Forecast

<aside> 🖥️ 4/4/22: Last week, Sen. Ted Cruz (R-TX) introduced legislation that aims to “prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to consumers.” – Banking Dive

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Important Updates

• Noted in a Press Release, the legislation would block a direct-to-consumer CBDC because it “could be used as a financial surveillance tool by the federal government.” – Sen. Ted Cruz (R-TX) Press Release
• Also worth noting that the press release says this type of surveillance is currently happening in China. Sen. Ted Cruz (R-TX) Press Release
• The Big Picture: This is right in line with the GOP’s wishes (and several moderate D’s) to protect private information of investor’s.
• Cruz: ““The federal government has the ability to encourage and nurture innovation in the cryptocurrency space, or to completely devastate it. This bill goes a long way in making sure big government doesn’t attempt to centralize and control cryptocurrency so that it can continue to thrive and prosper in the United States. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom—not stifling it.” Sen. Ted Cruz (R-TX) Press Release

No immediately relevant hearings or events identified.

WORTH NOTING:

The Block reported that last week Congressional Democrats invited Jack Dorsey, founder of Block (originally Square) and Twitter to speak at a private Q&A session with Democrats of the House Financial Services Committee.

• Rumored details of the private Q&A included specific questions about Dorse’s company “Block,” Bitcoin's energy consumption, application in money laundering, and limited circulation as a means of payment.

RUMOR HAS IT:

Bloomberg reported over the weekend that the European Union is looking to “speed up” efforts to construct and implement new rules governing cryptocurrencies after sustained concerns over Russian entities using digital assets to circumvent sanctions.

• “The European Parliament and member states discussed on Thursday the possibility of shortening the two-year implementation period for proposed EU rules known as the markets in cryptoassets (MiCA) during the first round of talks to finalize it, an EU official said.” – Bloomberg Business Insider India reported that, starting in May, the Indonesian Government will begin taxing capital gains income from crypto trading and investments. The tax is said to be 0.1%.
• While taxes are no fun, this is a move that signifies Indonesia may be starting to recognize crypto assets as securities

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Weekly Forecast of Web3 Policy