Launchy Regulatory Roundup #33 - Paul Atkins Confirmed as SEC Chair, ETH ETF Options Approved

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Welcome to our 33rd edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

Good Morning,

Gone are the days of crypto’s regulatory “wild west”, at least in the US, where transparency and collaboration now take centre stage.

With clearer rules on the horizon and more constructive conversations underway, the crypto industry is gearing up for a future that’s less about enforcement and more about innovation. But will the rest of the world follow?

In Today's Edition:

• Headline: Paul Atkins Confirmed as SEC Chair, ETH ETF Options Approved ✅ 

• Global Legal Roundup: EU v US Stablecoin 🥊 

• Case Study: SEC’s Non-Binding Crypto Guidance 📜 

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HEADLINE

Paul Atkins Confirmed as SEC Chair, ETH ETF Options Approved

State of play: Paul Atkins has been confirmed as the new chair of the US Securities and Exchange Commission (SEC) following a 52-44 Senate vote on April 9.

• A former SEC commissioner from 2002 to 2008, Atkins was nominated by President Donald Trump and is known for his pro-crypto stance.

• He replaces acting chair Mark Uyeda, who stepped in after Gary Gensler’s resignation in January.

• Atkins brings a background in regulatory consulting and crypto advocacy, having founded Patomak Global Partners and co-chaired the Token Alliance.

• His confirmation was briefly delayed due to financial disclosures related to his marriage into the billionaire Humphreys family.

Meanwhile, The SEC has approved the trading of options on BlackRock’s iShares Ethereum Trust (ETHA), making it the first spot ether ETF with options trading.

• The approval came in response to a July 2024 filing by Nasdaq ISE and was finalized on April 9.

What’s Next: Atkins has pledged to take a more collaborative approach to digital asset regulation, aiming to provide clearer rules and foster innovation, signaling a shift from the enforcement-heavy stance of the Gensler-led SEC.

Why it Matters: The confirmation of Paul Atkins signals a shift toward a more crypto-friendly regulatory approach at the SEC.

Our Take: Atkins’ leadership could open the door for more constructive dialogue between regulators and the crypto industry.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 Trump kills DeFi broker rule in major crypto win.

• 🇺🇲 Trump signs resolution killing IRS DeFi broker rule.

• 🇺🇲 Bitcoin reserve bills advance in New Hampshire, Florida.

• 🇺🇲 SEC, Ripple file joint motion to pause appeals in XRP case.

• 🇺🇲 Illinois Senate passes crypto bill to fight fraud and rug pulls.

• 🇺🇲 SEC drops suit against Helium for alleged securities violations.

• 🇺🇲 Jack Dorsey's Block fined $40M for alleged crypto compliance.

• 🇺🇲 North Carolina lawmaker introduces Digital Asset Freedom Act.

• 🇺🇲 NY attorney general urges Congress to keep pensions crypto-free.

• 🇺🇲 Trump admin reportedly shutters DOJ’s crypto enforcement team.

• 🇺🇲 New York bill proposes legalizing Bitcoin, crypto for state payments.

• 🇺🇲 Grayscale & Osprey end 2-year legal fight over Bitcoin ETF promotion.

• 🇺🇲 SEC & Binance push for another pause in lawsuit after ‘productive’ talks.

Europe:

• 🇬🇧 UK regulator sounds alarm over stablecoin risks.

• 🇸🇪 Swedish MP proposes Bitcoin reserve to finance minister.

• 🇪🇺 ECB exec renews push for digital euro to counter US stablecoin growth.

APAC:

• 🇵🇰 Pakistan proposes compliance-based crypto regulatory framework.

• 🇭🇰 Hong Kong introduces crypto staking rules, reaffirms Web3 commitment.

CASE STUDY

SEC’s Non-Binding Crypto Guidance

State of play: The SEC’s Division of Corporation Finance issued nonbinding guidance on April 10 to help crypto companies understand how US federal securities laws might apply to their operations.

• While this guidance doesn't carry legal force, it provides important insight into how the SEC views crypto-related disclosures and how firms can stay transparent and possibly avoid regulatory scrutiny.

Here's a breakdown of what the guidance includes:

• Disclose Business Details: Companies should explain what they do, how their token works, and how they make or plan to make money.

• Technical Info: Firms should share whether their blockchain uses proof-of-work or proof-of-stake, transaction speeds, security measures and whether the code is open-source.

• Ongoing Involvement: They should clarify if they’ll stay involved in the project post-launch or pass it on to others.

• Risk Disclosures: Must include risks like price volatility, cybersecurity, and regulatory uncertainty.

• Securities Info: If tokens are securities, firms must disclose things like voting rights, profit-sharing, and who can change the protocol.

• No New Definitions: The SEC didn’t clarify what counts as security, just how companies should disclose info if there's a chance their token is one.

Our Take: It’s a push for more transparency, not new rules. Firms that follow the guidance may be better positioned with regulators.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Ash’s read on Crypto APAC GTM Playbook.

• BA’s highlights on SEC’s 2nd crypto roundtable.

• BA’s thread on the overturning of IRS’s DeFi-killing Broker Rule.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.