Blockchain Legal Resource

In connection with a December 14, 2021, hearing of the Senate Banking Committee focused on the topic of stablecoins, Ranking Member Pat Toomey (R-PA) released a collection of principles that he hopes will influence the development of a future legislative framework for the asset class. Senator Toomey’s principles offer a more flexible approach to stablecoins in contrast to the approach embraced in a recent report on stablecoins released by the President’s Working Group, which advocated for limiting stablecoin issuances to entities that are insured depository institutions under the oversight of federal banking regulators.

On December 6, 2021, the Biden administration released a first-of-its-kind, comprehensive US Strategy on Countering Corruption.  The Strategy addresses all angles of the fight against corruption: prevention, investigation, exposure, and prosecution.  To accomplish this, it relies on a whole-of-government approach resting on five “pillars”:

On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act (the “Infrastructure Bill”), which significantly expands tax information reporting for certain cryptocurrency transactions. The Infrastructure Bill includes an information reporting requirement for cryptocurrency asset exchanges and custodians on an IRS Form 1099, and an information reporting requirement for certain persons who accept large payments in cryptocurrency in such person’s trade or business on an IRS Form 8300. The effective date of these changes will apply to any information return required to be filed after December 31, 2023.

On December 1, 2021, Freddie Mac published Bulletin 2021-36 for Freddie Mac sellers to provide updated guidance on eligibility criteria for qualifying mortgages. Freddie Mac publishes such bulletins on a regular basis for loan originators who wish to resell mortgages to Freddie Mac, and Bulletin 2021-36 covers a number of routine topics such as 2022 conforming loan limits, certain credit underwriting criteria and document custody. The bulletin is notable, however, because it specifically addresses requirements related to cryptocurrency’s use in the mortgage qualification process.