Launchy Regulatory Roundup #77 - Senate Democrats Urge Probe Into Binance Over Sanctions

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Welcome to our 77th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: Senate Democrats Urge Probe Into Binance Over Sanctions 👀 

• Global Legal Roundup

• Case Study: House Bill Seeks to Protect Blockchain Devs 🛡️ 

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HEADLINE

Senate Democrats Urge Probe Into Binance Over Sanctions

State of play: A group of Senate Democrats, led by Sen. Chris Van Hollen, has urged Attorney General Pam Bondi and Treasury Secretary Scott Bessent to investigate Binance over potential violations of US sanctions laws.

• In a letter signed by 10 other Democrats, the lawmakers raised concerns about whether Binance has adequate safeguards in place to prevent illicit finance.

• They called for a prompt and comprehensive review of the exchange’s sanctions compliance to ensure it is not endangering US national security.

• The request follows reports that two Binance partners facilitated money laundering tied to Iranian entities.

• The reports also claim that staff involved in investigating those transactions were disciplined or dismissed.

• Lawmakers have asked for a response from the Justice Department and Treasury by March 13.

What’s Next: DOJ and Treasury will review the claims and reply by March 13. If they see real compliance gaps, Binance could face tighter oversight or new penalties.

Why it Matters: Binance already paid $4B to settle past violations. If questions are surfacing again, it puts pressure on whether its compliance overhaul is actually working. It also shows Washington is still watching big crypto exchanges closely.

Our Take: For a platform this big, scrutiny is not going away anytime soon.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 SEC is seeking to regain crypto ground.

• 🇺🇲 US sanctions Russian firm Operation Zero.

• 🇺🇲 Minnesota introduces bill to ban crypto kiosks.

• 🇺🇲 OCC issues proposal to implement GENIUS Act.

• 🇺🇲 Indiana's BTC rights bill heads for final sign-off.

• 🇺🇲 US strike force freezes and seizes over $580M in crypto.

• 🇺🇲 Morgan Stanley files for bank charter to custody digital assets.

• 🇺🇲 US lawmakers revisit stablecoin yields amid deposit flight concerns.

• 🇺🇲 Judge blocks Binance from pushing class action suits into arbitration.

Europe:

• 🇪🇺 ESMA warns crypto perpetual derivatives likely fall under CFD rules.

• 🇬🇧 UK regulator weighs allowing crypto payments for online betting.

• 🇬🇧 UK security committee chair urges ban on crypto political donations.

APAC:

• 🇭🇰 Hong Kong to issue first stablecoin issuer licenses next month.

• 🇰🇷 South Korea proposes mandatory asset disclosure for crypto influencers.

CASE STUDY

House Bill Seeks to Protect Blockchain Devs

State of play: A bipartisan group of US House lawmakers has introduced the Promoting Innovation in Blockchain Development Act, a bill aimed at protecting software devs from criminal prosecution if they do not control or custody user funds.

• The legislation would clarify that federal money transmission laws apply only to actors who actually control digital assets, not devs.

• Supporters say this would prevent cases similar to those involving Tornado Cash developer Roman Storm and the founders of Samourai Wallet.

• Crypto advocacy groups, including the Blockchain Association and DEF, backed the bill, calling it a necessary step to protect innovation in the US.

• Meanwhile, the Senate is considering a similar proposal, the Blockchain Regulatory Certainty Act.

Our Take: If it passes, it could make the US more builder friendly. But critics will argue it risks creating cover for bad actors.

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