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To interpret the financial regulatory framework of Web3 in America

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Web3 digital assets in the United States show a trend of "multi-head supervision", and are jointly supervised by the federal and state levels.

原文标题：《万字简述 2022 美国 Web3 的金融监管》

The Way of the metaverse

America is certainly the world. Web3 Industry leader, whose tolerance and encouragement of technological innovation have spawned countless examples. Web3 Leading project in the field. According to a16z "Introducing the 2022 State of Crypto Report" [1], although the market has entered the winter, but we are still in the cold. Web3 In the normal development cycle of the industry, once the value of digital assets is rediscovered, it will attract the attention and interest of countless players in all markets. Web3 Innovation and entrepreneurship projects will follow. American Web3 People from all walks of life are also running with each other, now gradually formed a pair of Web3 A unified approach to digital assets and technology innovation: accelerate regulatory innovation and not miss a revolutionary opportunity to ensure. Web3 The revolution happened in America!

(from Introducing the 2022 State of Crypto Report)

As a result of Web3 The project is based on the anonymity, decentralization and other features of blockchain, plus the present. Web3 The application scenario of the project is mainly in the financial field or with financial attributes, so it is very easy to cause the information mismatch between the project side and the investor, resulting in fraud, market manipulation and other behaviors. What's more, some of them. Web3 Transactions of projects (cross-border transactions) can easily bypass customer verification (KYC) and anti-money laundering (AML) regulations, providing financing channels for criminals and terrorism. All these problems pose unprecedented challenges to the existing financial regulation of the United States government.

The U.S. government needs to (i) protect the interests of investors and consumers; (ii) Specification Web3 The long-term healthy development of the market, these two basic positions are right. The Web3 industry conducts financial regulation. Digital Assets (including but not limited to virtual currencies) are currently the focus of financial regulation by the U.S. government. Cryptocurrency, Non-Fungible Tokens (NFT), stablecoins and other digital assets), and exchanges, DeFi derived from digital assets; Protocol, DAO And other areas for regulatory exploration.

1. Regulatory architecture in the Wild West

Up to 2022 By the end of the year, the United States was targeting Web3 The financial regulation of digital assets has not yet formed a unified regulatory framework, showing a trend of "multi-regulatory", and is jointly supervised by the federal and state levels. Current SEC Chairman Gary Gensler In 2021 A surname Aspen At a securities forum, the current state of the markets is akin to the Wild West. [2], calling on Congress to do so. SEC More regulatory authority to regulate markets. In general, the main reason for the present regulatory status quo is still due to. Web3 The complexity of digital assets can be summarized in the following aspects:

1. There are many types of digital assets, and different departments have different definitions on them. Take Bitcoin, Ethereum, and other virtual currencies for example, there are regulatory bodies involved in commodities (CFTC), securities (SEC), currencies (FinCEN), property (IRS) and other fields.

2. The life cycle of digital assets involves many stages, such as mining, issuance, storage, trading, transfer, lending, derivatives, arbitrage, etc., and the application scenarios of digital assets are different, such as consumption, investment, money laundering, hacking activities, terrorist financing, etc., all of which cannot be classified into a unified regulatory framework.

3, Web3 The industry is still in its early stages, and with the continuous development of technology, more new things will be born and more fields will be involved, which leads to innovation and lagging regulation.

We are at the end of the Wild West, and America's financial regulators are well past the point where they can get away with it. case by case In the form of demining of high-risk projects in turn. At the same time, a unified financial regulatory structure is also being considered in Congress, entering a multi-party stage. In this context, in the entry. Web3 Before the Big Era of financial regulation, this paper attempts to brief the major financial regulatory agencies in the United States on the federal level. Web3 The attitudes of digital assets and their respective regulatory responsibilities for reference learning. As the saying goes, "a stone from another mountain can attack jade", welcome to exchange and correct.

2. The main financial regulatory departments of Web3 in the United States.

2.1 SEC

United StatesSecurities and Exchange Commission Exchange Commission, SEC) pursuant to the Securities and Exchange Act of 1934. Exchange Act (1934) is an independent and quasi-judicial agency directly under the federal government of the United States. It is responsible for securities supervision and administration in the United States. It aims to protect the interests of investors, promote capital formation, and maintain the fair and orderly operation of the securities market.

The current chairman of China Securities Regulatory Commission. Gary Gensler Has repeatedly said publicly that, with the exception of Bitcoin and Ethereum, which are absolutely decentralized virtual currencies, most of the virtual currencies issued by projects should be considered "securities" and therefore required to be listed in the SEC Apply for registration or an exemption. The purpose of such strict regulation is not to preserve the authority of institutions, but to protect investors, but to keep the industry healthy in the long run. SEC Issuers are required to disclose complete and non-materially misleading project information to investors, so as to reduce the information gap between issuers and investors and protect investors for their investment decisions. Information disclosure system is one of the core of Securities Law.

Against such a backdrop, it is difficult to see why. In 2019 Year 4 Month 3 [3] A Framework for "Investment Contract" Analysis of Digital Assets was released on Tuesday. [3] To assist issuers or other parties engaged in the business of digital assets to analyze whether their digital assets are "investment contracts" that should be included in the definition of "securities" and thus subject to compliance. SEC Relevant provisions and compliance obligations.

SEC There are very large jurisdictions that digital assets need to comply with once they are deemed "securities." SEC Relevant provisions and compliance obligations. The scary thing is that digital assets are not just virtual currencies, but also include them. NFT's, stablecoins and other forms of digital assets, and even scarier, the SEC's jurisdiction is not limited to the United States. In SEC v. Telegram Group Inc. In the case. [4], SEC In the general. Telegram Virtual currency issued. Gram Deemed to be "securities", after Telegram An emergency injunction was filed before the release. although Telegram Is an entity registered in the UK and operating out of Dubai, for issuing virtual currency targeting some Americans and failing to disclose critical information to the public. On the grounds of protecting the interests of American investors. Telegram The issuance of the regulatory enforcement.

2.1.1 & have spent Determine whether it is a "security"

In the case of digital assets, it is crucial to clarify whether the issuance and sale of digital assets are "Investment contracts" and thus fall under the definition of "Securities" and are included. SEC The scope of regulation. When it comes to "securities", there is always the "Howey Test". The Howe test is held by the U.S. Supreme Court. 1946 The case of the Year; SEC v. W.J. Howey Co. [5] A standard used in the decision to determine whether a particular transaction constitutes an "investment agreement." American 1933 Securities Act of 2005 2 The article defines what a "security" is. Its definition is very broad and includes stocks, bonds and other forms of profit-sharing agreements. It also includes "investment agreements." So, if a particular transaction meets the criteria of the Howe test, then that transaction is considered a "security" under the US legal system and is subject to US compliance. 1933 The Securities Act of 1996, 1934 The relevant provisions of the Securities and Exchange Act of 1996.

In SEC v. W.J. Howey Co. In this case, Howe developed a business model in which it sold the land to the buyer and then leased back the land from the buyer. Howe was responsible for the operation of the land. The buyer did not need to take care of the land themselves, but passively shared the profits through Howe's operation. Then SEC Sued Howe, arguing that the transaction constituted an investment agreement that fell within the definition of a "security" under the United States Securities Act. The court uses the landmark "Howe test" to determine whether the transaction constitutes a security.

In short, a security is a form of money investment in which investors passively participate in the business of others, and expect to gain profits through the efforts of others. If there is no effort of others or their efforts fail, there is the investment of money in a common enterprise with a reasonable expectation of profits to be. There is the investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others). Determining whether the issue or sale of virtual currency meets the criteria of the Howe Test, SEC The same three conditions are given in the "Analysis Framework" :

1. The Investment of Money. The investment of money. In addition to our understanding of the conventional definition of "money (usually money)", Other definitions specifically specified for "Money" include, but are not limited to: (i) virtual currency rewards received by an investor through completion of a specific mission (Bounty Program), as the issuer intends to promote its economic interests and foster a market for its virtual currency transactions by this means; (ii) Investors are rewarded with virtual currency through Air drops, as the issuer aims to facilitate the circulation of its virtual currency in this way. Here you can see that. SEC The definition of "Money" is expanded to meet different scenarios of virtual currency issuance and circulation.

2. A Common Enterprise. Typically, a publisher will publish a white paper explaining the purpose of its fundraising, such as building a new article. Layer One This is the common cause of investors and issuers. But for something like Bitcoin, which has no specific, clear purpose (common cause), They are not classified as "securities".

3. Reasonable Expectation of Profits Derived from Efforts of Others. Reasonable expectation of profits derived from efforts of others. This has been the most contentious point of all. In its "Analysis Framework", the following explanations are given to help analysis:

(i) Reliance on the Efforts of Others. By "others", we mean project parties, promoters or core contributors who have played an important managerial, operational role in the success of the project. The efforts will directly affect the success or failure of the common cause, while the investors only need to invest money and do not actually participate in the operation and management of the project. Fortunately. SEC For Active Participant The explanation is closer to the central project side than to the core contributors in a decentralized organization, otherwise it would be terrible!

(ii) Reasonable Expectation of Profits. SEC In the analysis framework, it is pointed out that the following behaviors are likely to meet the definition of "reasonable expected benefits" : capital appreciation of virtual currency, or virtual currency holding can enjoy similar dividends, profit distribution, or virtual currency holding is greatly beyond the scope of reasonable use of investors, or project party /AP Can profit from holding virtual currency (see the following SEC V. LBRY Case), or project Party /AP The act of adding value to a virtual currency through direct or indirect marketing.

(iii) Other Relevant Considerations. Federal courts often consider the Economic Reality of the virtual currency or the business model of the project. If the virtual currency is highly consumable, it may not constitute an "investment contract." As an inappropriate example, an investor expects to use its virtual currency to buy a Tesla on a mature e-commerce platform as a substitute (the consumption attribute of virtual currency), as opposed to an investor's expectation through the project party /AP Active construction, so that the early public chain projects can be constantly improved and put into use, so as to increase the value of their own virtual currency (virtual currency investment attributes).

Here's the interesting thing. a16z In his article "Principles & Models of Web3 Decentralization" [6] Web3 Projects can be Legally Decentralized by meeting the following two requirements: (i) All operational and management information of the project is transparent and accessible to all at any time (through transparent blockchain distributed ledger); (ii) Drive project success or failure without the additional management effort of a centralized team (through smart contracts, decentralized economic models, and DAO To achieve). On this basis, the project will be carried out again. ICO Or similar behavior may be considered inconsistent with the "common cause" and "the investment has a reasonably expected benefit from the effort of others" conditions in the "analytical framework."

SEC And federal courts have emphasized that the Howe test is flexible and can accommodate various business models designed to leverage other people's money with the promise of profit. In other words, SEC And courts are likely to interpret the facts broadly to ensure that the transaction is likely to meet the requirements of the Howe test and every aspect of the analytical framework. It's like a court of law. SEC v. W.J. Howey Co. What the case said: "For the factual basis, the form can be ignored, and the focus is on the economic model and business model of the project."

Let's look at a recent one. SEC v. LBRY Inc. The Case [7], the court ruled in favor. SEC The decision to make SEC Has been further expanded. LBRY Is a decentralized digital content sharing platform. It didn't pass. ICO Issued its virtual currency, but kept it to itself. 40% The rest 60% Is used for LBRY Users of the ecosystem, users can buy trades on an exchange. SEC Think that LBRY The act of disposing of its virtual currency meets the definition of "security". The court also recognized it. SEC (i) I believe that: (I) I believe that; Statements made in public make potential investors aware of the objective facts of the potential value of investing in virtual currencies;

(ii) LBRY Hope to pass LBRY Centralized team management and entrepreneurial efforts to achieve the value of virtual currency growth; (iii) The law does not stipulate that a virtual currency with both consumption and investment attributes cannot constitute an "investment agreement"; (iv) SEC It is never stated that the issuer is only in progress. ICO To comply with the registration requirements of the Securities Act. So, as you can see from this case, want to carry out. ICO Projects issuing virtual currency, or otherwise, should assume. SEC Will treat it as a "security" issue and adopt a compliance strategy accordingly.

2.1.2 & have spent Registration or exemption

There are only two ways for all securities to be issued or sold under the United States Securities Act: (i) in the SEC To register securities; Or (ii) to SEC Apply for exemption from registration of securities. For virtual currency projects that pass the Howey test, SEC Securities registration is not suitable because of the huge costs and strict disclosure requirements. So... SEC Is an ideal compliance path for virtual currency projects. At present, the project party can according to the Regulation D, Regulation A+, Regulation S Exemption from registration and other relevant regulations [8].

Reg D: Private offering to qualified investors in the United States. The most common application by the project side is. Reg D Under Rule504, 506 (b) and 506 (c) each have their own advantages. The main thing is that there is no need to go ahead with these three regulations. SEC Application, only need the project party in. ICO After 15 Submit a notice of sale within days. Form D. As you can see, Reg D More suitable for the early private placement stage Crypto Project, because the investors and financing amount is relatively controllable, so. SEC Regulation is also relatively light.

Reg S: For issuance outside the United States, one is issuance and trading outside the United States; The other is that it must not be issued to an American citizen.

Reg A+ : For the American public. That's the equivalent of a mini. IPO There are more stringent disclosure requirements and regulatory compliance requirements, with the interests of small and medium investors in the US as the core appeal.

Generally speaking, in fact, SEC There is already a program for virtual currency projects similar to Web2 The path to corporate compliance financing, such as those available to private qualified investors at an early stage. Regulation D (similar to Angel Wheel, A Wheel B Round) and for investors outside the US. Regulation S (similar to strategic investment by overseas investors), and later suitable for the public. Regulation A+ (similar to IPO). However, from the perspective of economic benefits, considering the complexity of the registration process and the cost of compliance, this compliance path is not cost-effective. So for SEC The compliance recommendations that can be given are: for those who want to carry out ICO nbsp; Web3 The project party should assume. SEC Will treat it as a "security" and adopt an overall compliance strategy accordingly. As a result of such compliance advice, compliance pressure has forced many start-ups. Web3 Projects are withdrawn from the United States (territories), and even some projects exclude American investors (people).

2.2 CFTC

The Commodity Futures Trading Commission (CFTC) is a federal agency established by the U.S. government. 1974 An independent body established in 2000. Authorized by the United States Congress. CFTC To administer and enforce the Commodity Exchange Act of 1936 (CEA) and its regulations, primarily responsible for regulating commodity futures, options and financial futures and options markets in the United States, with a view to promoting the public interest and the health of financial markets, To protect market participants and the public from fraud, market manipulation and other acts that disrupt market order.

Back in the day 2015 One in a year. Coinflip, Inc. Law enforcement action against [9] , CFTC Bitcoin is defined as CEA CEA Section 1 a (9) of the Act defines "commodity" to include, among other things, "all services, rights, of the act defines "commodity" to include, among other things, "all services, rights, and interests in which contracts for future delivery are presently or in the future dealt in." The definition of a "commodity" is broad [... Bitcoin and other virtual currencies are encompassed in the definition and properly defined as commodities. ").

Coinflip, Inc. Runs a company called nbsp; Derivabit , which matches bitcoin options contracts with investors, failed to comply while it was operating. CEA CFTC Regulatory requirements to fulfil compliance obligations and thereby be subject to CFTC Regulatory enforcement penalties. In addition, the incumbent CFTC Chairman Rostin Behnam Also stands for CFTC Is already capable of regulating most virtual currencies in the digital asset market, including Bitcoin and Ethereum. In CFTC www.nbsp; Digital Assets The column also features information on digital assets (mainly virtual currencies), telling the public clearly that digital assets, including all virtual currencies, are "goods."

2.2.1 Regulatory compliance of "commodity" futures trading

According to CEA 1 The provisions of subparagraph a (9), CEA Goods under this category is a very broad definition, which includes not only physical goods, but also intangible goods, as well as rights and benefits such as carbon emission permits (... all other goods and articles... and all services, rights, and interests... in which contracts for future delivery are presently or in the future dealt in). In addition, several judicial precedents in the United States have also identified virtual currencies as being. CEA The definition of "goods" must be followed. CEA And the relevant laws and regulations and accepted. CFTC The regulation of

On this basis, if the transaction of virtual currency satisfies: (i) the transaction object must be CEA non-eligible contract participant, as defined by the Institute; (ii) Transactions are made on a leveraged or margined basis; And (iii) the commodity is in 28 If there is no "actual delivery" within days, the transaction will be defined as CEA 2 (c) 2 D Under "a contract of sale of a commodity for future delivery", as a result, the platform providing the trading and the institutions engaged in the trading must comply with. CEA And the relevant laws and regulations and accepted. CFTC The regulation of

In a recent one. CFTC v. Ooki DAO In law enforcement cases. [11], CFTC Not only to regulate within its own jurisdiction, but also to extend the body of responsibility. DAO Members of the Ooki DAO Is a decentralized and autonomous organization. Organization members through proposals, voting and other means to operate and manage a named bZx The decentralization of DeFi Protocol.

CFTC That bZx Digital assets (virtual currency) traded under the agreement belong to CEA Under "Merchandise", in addition, bZx The transactions to be entered into under this agreement are CEA Defined as "futures trading", then bZx The actual controller and operator of the agreement must abide by it. CEA And the relevant laws and regulations and accepted. CFTC The regulation of As a result of Ooki DAO Never before in the world. CFTC Registration, CFTC In relation to the accusation. Ooki DAO Violation by offering illegal leveraged and margin transactions to U.S. residents. CEA And CFTC The relevant legal provisions.

2.2.2 & have spent nbsp; DAO Regulatory exploration

CFTC Allegations of violations of futures trading qualifications in this case are not new. It is worth noting that the Participation is also required. Ooki DAO Members of voting governance take personal responsibility. CFTC The regulatory logic is as follows:

First of all, under federal law, Meeting the definition of an unincorporated association, it consists of the following four aspects: (1) a voluntary group of persons; (2) without a charter; (2) Without a charter; formed by mutual consent. B. Formed by mutual consent. for the purpose of promoting a common objective. For the purpose of promoting a common objective.

Second, CFTC Under federal law and a number of state precedents on partnership law, members of an unincorporated organization for profit are held personally liable for the actions of the organization. This is different from LLC Or Corp And other legal entities can distinguish between substantive liability and personal liability, which is very important to us. DAO It can be fatal. CFTC Integrate centralized entities with Ooki DAO Organization analogy, LLC And DAO Also controls bZx Protocol, LLC By vote of the members. bZx Protocol governance, while Ooki DAO Also voted by members. bZx Protocol for governance. Therefore, CFTC Stands for: once OOKI Virtual currency holders influence by governing currency voting. Ooki DAO The result of the governance proposal, then the Ooki Holders of virtual currency can be considered willing participants. Ooki DAO Governance and need to. DAO Take personal responsibility for your actions.

Further details of the case will not be confirmed until after the hearing. But no doubt, this time. CFTC Eg. Regulatory action in Web3 There has been considerable shaking in the industry, the main reason being through. DAO Members who vote to participate in governance may be directly liable. While U.S. regulators have been expanding their reach when it comes to digital assets, it was a surprise to many that the first of the two U.S. DAO It will be the one to make the move. The CFTC, not the CFTC. Secant theta. It could be because of CFTC The nature of the case was found to be damning because the founders openly admitted that they created one. DAO It's to avoid US regulation.

2.3 FinCEN

The Financial Crimes Enforcement Network (FinCEN) was founded in 1990 In years, in years. 2001 Year 9.11 & have spent After the incident, it was incorporated into the U.S. Treasury Department as an agency under the USA Patriot Act. FinCEN Mainly responsible for the supervision and implementation of Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT) and Know-Your-Customer (KYC)), which, on the one hand, is responsible for preventing and punishing domestic and foreign money laundering activities, combating terrorist financing and other financial crimes, on the other hand, is responsible for collecting and analyzing information on financial transactions, and tracking suspicious individuals and activities by studying mandatory disclosure information of financial institutions.

FinCEN , which comes with the U.S. Bank Secrecy Act. BSA), FinCEN Virtual currency is regarded as "value that substitute for currency and are therefore" monetary instruments "under the BSA" [12]. According to FinCEN In 2019 Year 5 Month 9 "Application of FinCEN" s Regulations to Certain Business Models Involving Convertible Virtual Currencies "[13], Identify virtual currency "managers" that provide services to Americans (e.g., virtual currency issuers, ICO Relevant project Party) and the "convertor" (e.g. CEX, DEX These virtual currency exchanges), if they satisfy the definition of "Money Transmitter", are. BSA Under the Money Service Business (MSB).

Therefore, all virtual currency trading business entities need to comply. BSA As well as relevant financial regulations and compliance obligations. FinCEN Compliance obligations include requirements under BSA Direction FinCEN To register, report, receive FinCEN , establish appropriate anti-money laundering compliance systems, collect customer information and report suspicious financial activities.

Back in the day 2015 (1) A year ago, That's right. Ripple Labs Inc. Carried out 70 A $10,000 regulatory penalty. [14], the reason is Ripple Labs Inc. And its subsidiaries XRP II, LLC Willful violation BSA The provisions in the undirected. FinCEN Application MSB Licence to engage in its virtual currency. XRP And failing to establish appropriate anti-money laundering compliance systems, collect customer information and report suspicious financial activities.

In other words, any entity that wants to operate a compliant virtual currency business in the United States, which is still primarily in the exchange space, will need to ask for permission. FinCEN Apply for registration. MSB License, the implementation of a comprehensive anti-money laundering risk assessment and reporting mechanism, especially when it comes to the cross-border transfer of funds, virtual currency, fiat currency, stablecoin exchange, etc. Sun Cut recently acquired Huobi exchange (Huobi?) It's right there. 2018 Was announced to have won the U.S. MSB License plates and, according to the New York Times, Twitter. Recently it has also been directed to FinCEN Submitted to become MBS The registration documents for its march. Web3 Pay to pave the way.

Distinct from centralized entities, it is important to note that DeFi Fields, like Tornado Cash This way. DeFi Protocols, typically decentralized smart contracts hosted on the Ethereum blockchain, allow anyone to transact via Internet access. So for smart contracts how to comply with the need for clear regulation, I believe soon. DeFi Class items will face. FinCEN Regulatory pressure.

2.4 OFAC

By contrast, it is also part of the U.S. Treasury Department. OFAC Has broader regulatory authority, which comes from. 1977 The International Emergency Economic Powers Act (IEEPA), passed in 2000. Oversees all financial transactions in the United States and can sanction any person, entity or country that poses a threat to national security.

The Office of Foreign Assets Control of the US Department of the Treasury (OFAC), established 1950 Is an agency of the U.S. Department of the Treasury whose mission is to administer and enforce all economic and trade sanctions based on U.S. national security and foreign policy, including financial sanctions against all acts of terrorism, transnational drug and narcotics trade, and proliferation of weapons of mass destruction. OFAC With relatively little reputation but a lot of power, it usually issues sanctions lists against countries, entities or individuals for violations. OFAC Provide for and impose penalties for transactions with countries, entities, or individuals on the sanctions list, as well as special legislative authority to control and freeze all foreign assets in the United States.

In this year. 6 Month, OFAC Announced the launch of a virtual currency hybrid application platform. Blender.io Impose sanctions. [15], claiming to support hacker groups. Lazarus Group Over 2050 & have spent A $10,000 money-laundering operation by a hacking group run by the Democratic People's Republic of Korea. (DPRK) Support 2019 Was sanctioned by the United States in 2005. OFAC The sanctions are imposed for providing material assistance, sponsorship, or financial and technical support to illicit cyber activities inside or outside the United States that could pose a significant threat to the national security, foreign policy, economic health, and financial stability of the United States. OFAC Eg. It's frozen. Blender.io All assets in the United States and prohibit U.S. entities or persons from dealing with it. Blender.io Make any transaction.

Let's look at Tornado Cash The Case [16], in this year 8 Month, OFAC Tornado Cash To provide material (Materially) assistance, sponsorship, or financial and technical support for illicit cyber activities inside or outside the United States. 2019 Since its inception has been used for money laundering in excess of value. 70 Hundreds of millions of dollars in virtual currencies, including one called OFAC For providing support to entities or individuals on the sanctions list, whose actions could pose a significant threat to the national security, foreign policy, economic health, or financial stability of the United States. OFAC Sanctions.

This is the same as OFAC Sanctions Blender.io The logic is the same, the difference is this is OFAC For the first time, direct sanctions on on-chain centralized smart contracts. Tornado Cash Is a smart contract, the founders have previously handed over all the management tools, making it a fully decentralized, autonomously operated on-chain protocol. That's what caused this. Web3 Industry pair OFAC Concerns about regulatory authority, whether expanded, explain. OFAC Regulatory authority? In addition, Coinbase And Coin center Eg. Wait for some Web3 Organization is more of a pair. OFAC Filed a lawsuit alleging that OFAC There is no limit to sanctioning software programs because software code is a form of expression of speech and may violate the First Amendment rights to free speech and privacy. 1996 Famous legal cases in 2005. Bernstein v. the U.S. Department of State).

2.5 IRS

The Internal Revenue Service, part of the Treasury Department. 2014 Year 3 Month, IRS For tax purposes, digital assets are defined as "Property" [17], which is different from CFTC Define digital assets as "commodities". Define some digital assets as "securities". The virtual currency in digital assets is defined as "money". On this basis, IRS Taxation guidance has been put in place and the general taxation principles applicable to property transactions also apply to transactions using digital assets. Tax issues are too complex to be described here.

Three, the brewing Web3 Financial supervision scheme

"Make sure the revolution happens in America!" This is U.S. Republican Congressman. Patrick McHenry In 2021 At the end of the year's digital assets hearing, he also mentioned a key point: legislation for creators and entrepreneurs. Web3 Innovation on providing the necessary clarity of definition that will facilitate this. Web3 Markets thrive and protect investors and consumers by setting clear rules to prevent fraud and manipulation. [18].

Indeed, it can be seen that the US regulatory agencies, from initially only bringing digital assets into their respective jurisdictions, have now also brought operators and issuers derived from digital assets into their supervision, and are constantly exploring regulatory paths. But the problem with that is that for the Web3 Us regulators have not dealt with many similar technological innovations. DeFi, DAO, decentralized smart contract and other emerging subject concept and scope of responsibility to give a clear definition, which caused the supervision in the further exploration of the path, easy to cause. Web3 Industry panic, even fears that further regulatory measures will curb it. Web3 The development of scientific and technological innovation, especially. OFAC Pair similar to Tornado Cash Such privacy application mixers "one-size-fits-all" sanctions. Therefore, it is of great importance to adopt a regulatory approach that can both encourage technological innovation and curb illegal activities to protect the interests of investors.

The United States is very worthy of expectation in terms of improving the regulation. Through the efforts of many parties, "to ensure that the revolution happens in the United States" has become the consensus of the American decision-making level. 2022 Year 6 The month of the year. Wyoming State Republican U.S. senator. Cynthia M. Lummis Introduced a bill called the Responsible Financial Innovation Act. [19] (currently in committee), the bill would combine with existing legislation to create a more comprehensive regulatory framework for digital assets. It would attempt to "pragmically" respond to existing problems in the financial regulation of digital assets, and aim to strike a balance between consumer protection, regulatory transparency, financial innovation and market flexibility.

Eg. The bill is right. SEC And CFTC The scope of supervision and the definition of digital assets are more clearly divided, and provisions are also made on the taxation of digital assets, payment stablecoins, digital asset exchanges, digital asset service providers, digital assets self-discipline association and financial innovation Advisory Committee. It can be said that this act is the most comprehensive digital assets regulation act in the United States at present, and its regulatory framework and ideas are worth learning.

In addition to this, the White House is also this year. 9 Month 16 The "First-Ever Comprehensive Framework for Responsible Development of DigitalAssets" [20] was released in September, aiming to promote multi-sectoral cooperation and provide clearer direction for the supervision of digital assets. At the same time, we see the Financial Stability Board; Stability Board, FSB) and IMF And other international financial organizations are preparing regulatory frameworks for digital assets. [21].

The present one. Web3 "Wild West" days, very much like. 2008 In 2010, after the financial crisis. Year Dodd-Frank The law of the land [22] The period before it was introduced. Dodd-Frank From the perspective of preventing financial systemic risks and protecting consumer interests, the bill reconstructs the financial order of the United States and hopes to restore confidence in the American financial system.

Dodd-Frank The bill mainly includes the following contents: (i) implementing systemic risk regulation, reorganizing regulatory agencies and regulatory functions, setting up the Financial Stability Oversight Council (FSOC), and changing the situation of "Too Big Too Fail" in financial institutions; (ii) Adopt the "Volcker Rule" to restrict proprietary trading by banks and other financial institutions, so that banks and other financial institutions can return to the era of separate operations from the previous era of mixed operations; (iii) Strengthen regulation of the derivatives market to monitor excessive speculation; (iv) Establish a Consumer Financial Protection Bureau (CPFA) to strengthen consumer and investor protections. Let's make a simple analogy to the present. FTX The situation after the thunderstorm: The main cause or one of the causes of the crisis is high leverage; Due to proprietary trading plate Alameda Heavy losses, resulting in The risks of FTX financial institutions, and soon spread to the entire virtual currency market, forming systemic risks; The limits of regulatory authority and the absence of a unified interagency co-ordinating body allow the culprits to remain unpunished; Consumers have nowhere to look for protection. Yeah? Are you familiar with it? It's still the same.

4. Write at the end

There are dozens of bills on digital assets pending before Congress, but with the U.S. 2022 The emergence of numerous black swan events in digital asset markets in 2005, especially. FTX After the thunder, it will surely speed up the further perfection of America. Web3 The determination of the financial regulation, in order to crack down on crime while promoting scientific and technological innovation, ensure. Web3 The revolution took place in America.

最后援引 SEC 委员 Hester Peirce 的一段话作为结尾：「许多科技创新的实验都会失败，但失败可以为未来的成功指明方向。因此，为科技创新提供宽广的实验空间至关重要，同时采取适当的保护措施以减轻伤害。这样的实验能为监管者和市场参与者提供宝贵的经验 [23] 。」