Kiffmeister’s Fintech Daily Digest 03/25/2020

  • Telegram is seeking to appeal a United States federal court’s recent ruling in favor of the Securities and Exchange Commission to halt distribution of GRAM tokens.
  • Judge Castel found that the 175 initial investors, “expected to profit from Telegram’s continued support for Grams and the underlying TON Blockchain through the distribution of Grams by the Initial Purchasers to the public.” That fits the four-part Howey test that defines what is and is not a security, he said.
  • Global stablecoin initiatives may, depending on their structure, present features that are typical of regulated securities or other regulated financial instruments or services. This paper identifies possible implications that global stablecoin proposals could have for securities market regulators.
  • According to Coin Metrics data, stablecoins gained market share, spreads on spot and futures markets widened, and transfer fees spiked as people rushed to deposit coins. Crypto holders may have been turning to stablecoins in an attempt to preserve their capital while the market experienced a major downturn.
  • The Australian Securities Exchange (ASX) has indefinitely postponed the launch of its blockchain-based alternative of its equities clearing and settlement system. Originally set for a launch by the end of 2020, the exchange earlier delayed it till April next year. Now, however, there is no specified timeline for the launch.
  • The Commodity Futures Trading Commission on Tuesday laid out its view on what it means to take “actual delivery” of a digital asset. The long-awaited guidance is significant because it means that there could be penalties for trades that don’t let the buyer take physical possession and control of a coin within 28 days — the cut off line for when trades in commodities like wheat and oil start to be considered futures contracts.
  • Improvements in distributional efficiency and increased access are just part of the “digital dollars” appeal. They could also allow for a more innovative transmission of fiscal and monetary policy, especially in times of crisis.
  • Pioneering Swiss crypto bank Sygnum unveiled a stablecoin pegged to the Swiss franc on March 20. Sygnum’s ‘DCHF’ “settlement token” is backed 1:1 by funds held with the Swiss National Bank.
  • A payments revolution has prompted a proliferation of shadow digital money. This money is unsound. It is not insured by the government, nor is it backed by safe assets. Federal regulation is needed to guarantee safety and soundness, to restore full monetary control to the Federal Reserve, and to prevent a race to the bottom between competing state and federal regulatory regimes. Congress should pass new legislation preempting state money service businesses (MSBs), offering federal MSB charters, and authorizing the OCC to establish a special regulatory regime for MSBs that restrict issuers to investing in cash and cash equivalents at banks or the Federal Reserve. With these changes, innovation in payments is just that — innovation in payments—and not also unauthorized and unsound money issuance.
Posted from Diigo. The rest of my favorite links are here.