The United States Government Accountability Office (GAO) has released a 77-page report on the regulatory framework for blockchain in finance, which was requested by two members of the House of Representatives Financial Services Committee.

  Despite the summer lull, institutional interest in the crypto industry has been increasing. Companies are filing for spot bitcoin ETFs and discussing custody and upcoming legislation in the US Congress. Anchorage Digital, a bank offering custody services for securities in the crypto industry, has observed companies wanting to do business outside of the US, with Europe and Singapore leading the way in getting regulation right. However, regulatory clarity in the industry is still lacking, and Anchorage believes that federal regulation is necessary for the industry to have the desired impact. Tax implications are a major factor for companies seeking to operate outside of the United States, with many wanting to avoid regulatory and tax burdens.  

The "Right to Mine" law recently passed in Arkansas is facing opposition due to concerns over loosened restrictions on commercial cryptocurrency mining. The law limits the authority of city governments to regulate crypto mines, which has raised concerns about noise levels, strain on the power grid, and environmental impact.

The UK government has rejected proposals by lawmakers to regulate cryptocurrencies like gambling. Instead, the government believes that its existing proposals are better suited to address the risks posed by events such as the FTX collapse.

India's Finance Minister and current G20 president, Nirmala Sitharaman, announced that the G20 has given its approval to the Financial Stability Board's (FSB) recommendations on crypto asset activities and global stablecoin arrangements. The FSB's recommendations come in response to calls from the crypto community for stronger controls, and focus on governance, risk management, and clear disclosures to protect customer funds.

Alexander Grieve has been hired by Paradigm as their new government relations lead. With over a decade of experience in DC politics and financial policy, Grieve will be joining the venture capital firm as they lead the industry in advocating for clearer regulations. Grieve expressed his excitement about joining Paradigm on Twitter.

Gary Gensler, Chair of the Security and Exchange Commission (SEC), has warned that the development of artificial intelligence (AI) for financial markets applications by big tech companies could destabilize the global economy. In a speech to the National Press Club in Washington, Gensler stated that AI could increase financial fragility and promote herding behavior among individual actors.

The G20's Financial Stability Board has stated that crypto firms must introduce basic safeguards to prevent the blow-ups seen at FTX exchange and other crypto casualties, due to globally agreed rules. The watchdog has published final recommendations for supervising firms that trade cryptoassets such as bitcoin, and revised its existing recommendations for stablecoins in light of the demise of TerraUSD/Luna coins. The FSB has emphasized the need for robust governance to avoid conflicts of interest, proper risk management and disclosures to ensure that customer money is segregated from company cash. The collapse of FTX in November 2022 highlighted vulnerabilities from crypto firms, and the FSB has urged all countries to apply the recommendations, even those that are not members of the watchdog.

Circle CEO Jeremy Allaire has urged Congress to regulate stablecoins, warning that the US dollar's status as a global reserve currency is under threat. Allaire highlighted the increasing competition faced by the dollar and the potential impact of foreign digital currencies, particularly the yuan. He argued that establishing trust in digital dollars and regulating stablecoins promptly is essential to maintain the dollar's status and ensure America's continued leadership in the global economy. Industry leaders, including Mike Novogratz, have echoed Allaire's call for well-regulated stablecoins, emphasising the importance of establishing a robust regulatory framework to build trust, protect consumers and ensure the stability and competitiveness of the US dollar in the evolving digital landscape.

Circle CEO Jeremy Allaire has warned that the US dollar's position as a global reserve currency could be threatened if Congress does not regulate stablecoins quickly. Allaire made the comments in a video targeted at lawmakers as bipartisan digital asset-specific legislation was reintroduced to Congress.