Crypto companies have formed the Blockchain Association lobbying group to work with US regulators
The Crypto Report
US regulators have been keeping a close watch on cryptocurrency. The US Congress Subcommittee on Terrorism has been taking a look into the digital currency’s relation to illicit activities while the US Securities and Exchange Commission has rejected multiple proposals of a bitcoin-focused exchange-traded fund.
Industry heavyweights are forming the Blockchain Association, a Washington, DC lobbying group looking to work with policymakers regarding regulations, as per a Washington Post report.
Exchange Coinbase and Group Inc ()-backed start-up Circle have joined the group.
“We’re not companies looking to game the system, but trying to develop a legal and regulatory system that’ll stand the test of time," said Mike Lempres, Coinbase's chief legal and risk officer, in an interview with the Washington Post.
One of its first hires is Kristin Smith, a former aide to Senator Olympia J. Snowe (R-ME) who has lobbied for Overstock.com Inc (), an e-commerce retailer that began accepting Bitcoin payments in 2014.
READ: Interim CEO of Riot Blockchain moves to distance the company from SEC probe into ex-CEO
Two apparent legal firsts have taken place in the cryptoverse this week.
The SEC has issued its first disciplinary action against a digital asset management fund, according to a CNBC report.
A cease and desist order and a US$200,000 fine were handed down to Crypto Asset Management and its founder Timothy Enneking.
The regulatory body said the fund violated securities laws when it failed to register itself as an investment company.
In another presumable first, the Financial Industry Regulatory Authority has filed a fraud complaint against a crypto broker.
FINRA charged a Massachusetts resident with securities fraud for an unregistered token sale, as per a CoinDesk report.
A man connected to crypto company Rocky Mountain Ayre Inc (OTCMKTS:RMTN) was accused of selling unregistered securities in the form of the HempCoin token, which claimed to be the first minable coin backed by marketable securities.
The token was not registered as a security and the company did not apply for an exemption.
The man charged will have the opportunity to defend himself in front of a disciplinary panel. A guilty verdict could mean a fine, a permanent ban from the securities industry or an order to pay restitution for damages.
The Cann Report
The North American legal cannabis market as a whole is feeling the ripple effect of impending Canadian legalization.
The legal cannabis market in North America is expected to reach a value of US$35bn by 2023, according to market research group IMARC. In 2017, the legal market topped US$8bn in value.
READ: Aurora Cannabis acquires European organic hemp company Agropro
In other news up north, Canada is celebrating Canadian Organic Week, an annual celebration of the country’s organic food and farms. Cannabis companies are joining the party.
(TSE:TGOD, OTCQX:TGODF) launched its brand of organic cannabis.
"Organically certified cannabis is preferred by Canadian consumers, in both medical and recreational markets," said Andrew Pollock, vice president of marketing, in the company’s press release.
"Cannabis consumers value the safety, medical efficacy and natural terpene profiles that organic cannabis provides,” he added.
The cannabis is grown naturally in Canadian soil without the use of synthetic pesticides, herbicides or fertilizers.
