United States Treasury Secretary Janet Yellen told lawmakers that Congress should address loopholes in the regulation of digital assets, some of which could pose risks to investors or the financial system.
During a hearing before the House of Representatives Financial Services Committee on Feb. 6, the committee’s chairman, Representative Patrick McHenry, asked Yellen about her stance on pending laws regarding stablecoin and regulatory clarity in the cryptocurrency space. The Treasury Secretary called the regulations “crucial” for certain areas, including protection of wallet holders and oversight of stablecoin issuers.
A day later, Representative Maxine Waters revealed that Democrats and Republicans are now “very close” to a shared vision on stablecoin. Waters had been negotiating the issue with McHenry for more than 20 months. There has been much debate over how the Federal Reserve will oversee the stablecoin space and whether it will set the rules for stablecoin issuance.
Circle CEO Jeremy Allaire recently expressed optimism that the United States will enact a much-needed stablecoin law in 2024. Circle, the company responsible for stablecoin USD Coin, has been consistently pushing for stablecoin regulation for several years. The company began lobbying in cooperation with the consulting firm Invariant in late 2021 and is estimated to have spent $760,000 on lobbying efforts since then.
South Korean government threatens big cryptocurrency scammers with life imprisonment
The South Korean government has introduced new updates to the Virtual Asset User Protection Act with provisions focused on cryptocurrencies that protect investors from market crimes. The new cryptocurrency law prohibits the use of “undisclosed relevant information” regarding cryptocurrencies, market manipulation and illegal exchanges. The law introduces significant punitive measures and fines for violations, including imprisonment of more than a year or an acceptable fine of three to five times the amount of illegal profits. According to the FSC , criminals who obtain more than 5 billion won ($3.8 million) from illegal cryptocurrency trading schemes can be sentenced to life imprisonment.
European Commission proposes guidelines on artificial intelligence (AI) in the context of elections
The European Commission will require technology platforms such as TikTok, X and Facebook to detect artificial intelligence (AI)-generated content in order to secure the upcoming European elections from disinformation. The Commission has launched a public consultation on proposed election security guidelines for very large online platforms and very large search engines. The recommendations aim to mitigate the threats to democracy posed by generative AI and deepfakes. The draft guidelines propose possible countermeasures to address election-related risks, including specific actions related to AI-generated content, planning to mitigate risks before or after an election event, and providing clear guidance for European Parliament elections.
General dissatisfaction over Kenya’s new artificial intelligence (AI) law
Kenyan information technology experts have called on the country’s parliament to reject the 2023 Robotics and Artificial Intelligence Society bill, pointing to numerous shortcomings. According to local media, during a session of the National Assembly‘s Communications, Information and Innovation Committee, held to mark International Safer Internet Day 2024, the committee was told by AI and robotics stakeholders that they were not involved in any stage of the bill’s drafting process.
The proposed law seeks to impose penalties, including fines of up to one million Kenyan shillings ($6,269), a potential two-year jail term, or both, on unregistered robotics and AI operators if they fail to register with the Robotics Association of Kenya.
