Pro-Crypto US Presidential Candidates Leave, Trump ‘Will Never Allow’ CBDC: Law Decoded
Two US presidential cryptocurrency candidates who have been covered by Cointelegraph in recent months have officially dropped out of the race. Vivek Ramaswamy, the only presidential candidate with a proper crypto framework in his program, conceded defeat and threw his weight behind former President Donald Trump in the upcoming election, saying, “He should be America's first candidate in this race.” Ramaswamy emerged on the presidential campaign circuit as a relatively unknown candidate, but quickly gathered a following in the crypto community for his outspoken policy ideas regarding Bitcoin (BTC) and other digital assets.
Central Bank Digital Currency (CBCC) rival and Florida Governor Ron DeSantis also withdrew from the race for the White House after losing the Republican nomination to Trump in the Iowa caucuses by 21 percentage points. DeSantis has promised to ban a version of the digital dollar if elected in one of his first campaigns. Florida's governor has been vocally supportive of crypto since 2021, when he proposed that businesses pay state taxes in cryptocurrencies in the 2022 to 2023 fiscal year.
Trump, who appears to be winning the Republican primaries, has taken at least one sensitive crypto point from his defeated opponents. During a campaign speech in Portsmouth, New Hampshire, Trump vowed that he would “never allow” the US Federal Reserve to create a CBDC in the country. “Such a currency would give the federal government, our federal government, absolute control over your money,” Trump said. However, as president, Trump has previously said he is “not a fan of cryptocurrencies and bitcoin” and that their value is “based on thin air.”
Four US states are weighing anti-CBDC bills.
Bills opposing CBDC have been proposed in the states of Utah, South Carolina, South Dakota and Tennessee. The bills would exclude CBDCs from funding and create a significant roadblock for CBDCs in the United States. A similar law was enacted in Florida in May 2023. It also prohibits the use of CBDCs issued by foreign governments, and calls on other states to use their commercial codes to create similar prohibitions.
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The European Banking Authority extends AML rules to crypto
The European Union's Anti-Money Laundering and Counter-Terrorist Financing Directives (AML/CFT) have been extended to European crypto companies following a decision by the European Banking Authority. The updated guidance aims to help crypto asset service providers identify their vulnerability to financial crimes based on their “customers, products, delivery channels and geography.” The guidance outlines how crypto companies should adjust their financial crime prevention measures, including “using blockchain analytics tools.” Financial crime risk assessment guidance has been included with crypto companies being instructed to consider the potential risks associated with “anonymity-disclosure features”, self-hosted wallets, decentralized platforms and products that allow transfers between the company and similar services.
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Canada to change requirements for crypto investment funds
Canadian Securities Administrators has released proposed changes to rules for how public investment funds treat crypto assets. The reforms under consideration will limit the activities of public investment funds and establish levels of supervision regarding crypto. According to the amendments, only alternative and irreversible investment funds are allowed to directly buy, sell or hold crypto assets. Other mutual funds may invest in those funds only to receive crypto exposure. The assets must be listed on an exchange recognized by a securities regulatory authority in Canada and must be liquidable.
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