The Travel Rule is a regulation that requires financial institutions to collect and transmit information about the parties involved in a cross-border transaction above a certain threshold. The rule aims to prevent money laundering, terrorist financing, and other illicit activities by enhancing the transparency and traceability of funds transfers.
The TRUST Coalition is a global initiative that brings together various stakeholders from the crypto industry, regulators, and policymakers to develop a common framework and standards for implementing the Travel Rule in a way that respects the privacy, security, and innovation of the crypto ecosystem.
The TRUST Coalition was launched in October 2020 by the Chamber of Digital Commerce, a leading trade association representing the digital asset and blockchain industry. The coalition consists of over 30 members, including crypto exchanges, custodians, wallet providers, compliance solutions, industry associations, and legal experts.
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The TRUST Coalition believes that the Travel Rule can be an opportunity for the crypto industry to demonstrate its commitment to responsible innovation and to foster trust and legitimacy among regulators and the public. By working together, the coalition hopes to create a harmonized and balanced approach that meets the regulatory objectives while preserving the core values and features of crypto assets.
Some of the members of the TRUST Coalition are:
Chamber of Digital Commerce: A leading trade association representing the digital asset and blockchain industry, and the founder of the coalition.
BitGo: A provider of institutional-grade custody, trading, and lending services for crypto assets. Binance: The world’s largest crypto exchange by trading volume and users CipherTrace: A provider of anti-money laundering, compliance, and security solutions for crypto assets. Coinfirm: A provider of regulatory technology for crypto assets and blockchain. Crypto.com: A platform that offers various crypto products and services, including an app, a card, an exchange, and a DeFi wallet.
Elliptic: A provider of risk management and compliance solutions for crypto assets. Huobi: A global blockchain company that operates a crypto exchange, a wallet, a mining pool, and other services. OKEx: A leading crypto exchange that offers spot, futures, options, and perpetual swap trading.
Paxful: A peer-to-peer marketplace that connects buyers and sellers of crypto assets. Shyft Network: A decentralized network that enables secure and private data sharing among different entities. Sygna Bridge: A solution developed by CoolBitX that enables compliant data transfers among crypto service providers.
The TRUST Coalition has three main objectives:
To facilitate dialogue and collaboration among crypto industry participants and regulators on the best practices and solutions for complying with the Travel Rule. To promote interoperability and compatibility among different technical solutions and platforms that enable the exchange of information required by the Travel Rule.
To educate and raise awareness among crypto users, service providers, and regulators about the benefits and challenges of implementing the Travel Rule in a decentralized and global environment.
The TRUST Coalition believes that the Travel Rule can be an opportunity for the crypto industry to demonstrate its commitment to responsible innovation and to foster trust and legitimacy among regulators and the public. By working together, the coalition hopes to create a harmonized and balanced approach that meets the regulatory objectives while preserving the core values and features of crypto assets.
CFTC Commissioner says the market is ready for Spot Bitcoin ETFs.
The U.S. Commodity Futures Trading Commission (CFTC) is one of the regulators that oversees the cryptocurrency industry. Recently, one of its commissioners, Dawn Stump, expressed her support for the approval of spot Bitcoin ETFs, which are exchange-traded funds that track the price of Bitcoin directly.
In an interview with CoinDesk, Stump said that the market is ready for spot Bitcoin ETFs and that the CFTC does not have any objections to them. She also said that the CFTC’s role is to ensure fair and transparent markets, not to pick winners and losers among different products or technologies.
Stump’s comments are significant because they contrast with the views of the Securities and Exchange Commission (SEC), which has so far rejected all applications for spot Bitcoin ETFs. The SEC has cited concerns about market manipulation, fraud, and investor protection as reasons for its rejections.
However, Stump argued that these concerns are not unique to Bitcoin or cryptocurrencies, and that they can be addressed by existing regulatory frameworks and market surveillance tools. She also pointed out that other countries, such as Canada and Brazil, have already approved spot Bitcoin ETFs without any major issues.
Stump’s stance is also notable because she is not a crypto enthusiast or a Bitcoin maximalist. She said that she does not own any cryptocurrencies and that she is not advocating for or against them. She said that she is simply applying the same principles and standards that the CFTC uses for other commodities and derivatives.
Stump’s remarks may signal a shift in the regulatory landscape for Bitcoin and cryptocurrencies in the U.S. While the SEC remains cautious and conservative, the CFTC may be more open and supportive of innovation and competition in the crypto space. This could pave the way for more products and services that cater to the growing demand and interest of investors and consumers in this emerging asset class.