Crypto cities, investor protection country, 8.-15. November. As the U.S. federal government – through the Securities and Exchange Commission – continues to boldly protect investors and the public interest from the grave dangers of spot bitcoin exchange-traded funds, major American cities begin to embrace, or at least, at least Explore the potential of cryptocurrency and blockchain technology to improve various aspects of finance, city government and the like of the city and the financial well-being of its residents. After Miami, New York, Tampa and Jackson, Tennessee, Philadelphia now wants to implement blockchain solutions in the city government.

Hopefully a flood of successful city government projects in the crypto space will eventually lead the federal government to adopt a more “urban” perspective.

Below is a short version of the latest “Deciphered Law” newsletter. For full details on the political developments of the past week, sign up for the full newsletter below.

Spot Bitcoin ETF rejected

Last Friday, after two deadline extensions, the SEC officially denied VanEck’s application for an on-site Bitcoin exchange-traded fund, the first of which was filed in March 2021. Sharing agreement with a regulated market of sizeable size that includes the underlying bitcoin asset or reference value bitcoin “this is important to prevent manipulation and fraud.

According to the SEC, joint custody is sufficient in the case of the Chicago Mercantile Exchange’s BTC futures market, but inferior when it comes to the spot markets that underpin the majority of Bitcoin futures prices. A recent letter from MPs Emmer and Soto highlights the limits of the agency’s reasoning.

Commissioner Crenshaw on DeFi

In an article published on International journal on blockchain law, SEC Commissioner Caroline Crenshaw shared her thoughts on some of the regulatory issues related to the decentralized financial sector. Basically, it believes that DeFi products can be securities and should be reviewed in accordance with applicable securities laws.

The Commissioner’s main argument was the need for DeFi market participants to come forward and voluntarily adhere to securities laws, particularly those related to risk education. She also warned that those who fail to comply could be subject to SEC enforcement actions and severe penalties.

People’s Bank of China Governor Yi Gang discussed the digital yuan’s cross-border expansion plans, while the Singapore Monetary Authority executive revealed a strong focus on the retail sector of the country’s potential CBDC. An updated schedule for the test release of the digital ruble has been announced in Russia, with a prototype platform expected to be ready for testing in early 2022. At the same time, the Russian legislature has started to prepare the legal basis for the nationwide introduction of digital currencies. In the meantime, the Bank of England has taken its time to weigh all the pros and cons of introducing a digital pound and mark the “second half of the decade” as the earliest.