Weekly Roundup

Looming Government Shutdown: With little time to avert a federal government shutdown, Speaker Kevin McCarthy (R-CA) must navigate dissenting voices within his caucus to pass a temporary funding bill before the September 30th deadline.

SEC’s Crypto Investigations : According to SEC Crypto Assets and Cyber Unit division head David Hirsch, the agency will continue intensifying its efforts to enforce securities laws within the digital assets industry. Specifically, Hirsch noted that in addition to the high-profile inquiries launched against Coinbase and Biance, his team is currently investigating a number of other firms in and around the sector. While Hirsch underscored the department’s commitment to these efforts, he did acknowledge the complex resource challenges associated with policing the rapidly evolving ecosystem.

Congressional Attention to AI: Discussion of artificial intelligence continued, with Sen Menendez (D-NJ)questioning witnesses at a Senate Banking Hearing on the impact of AI on consumers.

Future of Digital Asset Regulations: SEC Commissioner Hester Peirce called this week for increased transparency regarding the future of digital asset regulations, specifically encouraging industry stakeholders to engage with the agency to help reimagine long-term policy initiatives.

Deceptive Product Labels: The SEC indicated this week that they are likely to move forward with stricter rules regarding fund names. These new regulations, which have come under fire from opponents within the sector for being unnecessary and burdensome, would require funds to prove that 80% of their holdings match their listed names.

Coinbase’s Grassroots Campaign: In an effort to help provide long-term stability for retail investors, Coinbase is reportedly intensifying its grassroots campaign to secure sector-wide regulations at the federal level. As part of this effort, the company is asking supporters to contact their elected representatives to voice their support for a number of crypto legislative measures currently making their way through Congress.

Sen. Warren’s Crypto Bill: While the crypto industry steps up its legislative efforts, U.S. Senator Elizabeth Warren (D-MA) is garnering support for her Digital Asset Anti-Money Laundering Act. The bipartisan effort seeks to address concerns related to bad actors co-opting crypto to power money laundering, drug trafficking, and sanction evasion operations, and the Senator was able this week to secure the signatures of nine co-sponsors.

In the Mix: This Week’s Top FinTech Thought Leader

  • MMI welcomed Al Campos, Director of the AARP’s National Retired Teachers’ Association, as the organization’s latest Advisory Board member.

  • Lynn Martin, president of the New York Stock Exchange, spoke with Axios at the Primary Venture Partners’ NYC Summit regarding the recent wave of IPOs the tech sector. Notably, she stressed the importance of companies doing their due diligence before deciding to go public. “It’s not growth at all costs. If you want to tap the public market, you’ve got to be disciplined, you got to have a disciplined strategy, you’ve got to have a story that you can articulate,” said Martin.

  • Mark Cuban, billionaire entrepreneur and owner of the Dallas Mavericks, reportedly was a victim of a phishing campaign that cost him $870,000 worth of crypto tokens. This cyber-attack, which resulted in the scammers removing U.S.-pegged stablecoins, staked ETH, SuperRare tokens, and a number of Ethereum Name Service domains directly from Cuban’s digital wallet, is the latest in a string of coordinated hacking campaigns targeting the crypto assets of high-profile individuals and institutions.