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One of the most fascinating implications of the collision between traditional political institutions and the crypto space is how it can reveal the glaring lack of cohesion within power systems that otherwise look monolithic. Digital assets reside in a parallel policy dimension where neither a centralized consensus nor a clear rulebook exists, leading to a surprising variety of voices and opinions emerging in the absence of a politically coordinated course. Last week, a rare lively policy debate broke out in Russia<\/a> in the aftermath of its central bank\u2019s attempt to promote a hardline stance on crypto. One does not often see such a public interagency disagreement on substantive issues.<\/p>\n Below is the concise version of the latest \u201cLaw Decoded\u201d newsletter. For the full breakdown of policy developments over the last week, register for the full newsletter below.<\/p>\n Following the central bank\u2019s blanket ban proposal, it emergedthat the Ministry of Finance had been working on its own crypto regulatory framework<\/a> all along, whose tenets are fundamentally opposed to the Central Bank of Russia\u2019s prohibitive drive. In all, the ministry proposes using the traditional banking system\u2019s rails to facilitate crypto payments all the while categorizing investors as qualified or unqualified and introducing strong financial surveillance mechanisms. Even former President and Prime Minister Dmitry Medvedev came out of the woodwork to offer comments<\/a> in support of regulation, rather than a blanket ban on cryptocurrency operations.<\/p>\n Apparently, the narrative battle over how to deal with the power of the digital asset space is underway within the halls of the Russian government, and its ultimate outcome is anyone\u2019s guess.<\/p>\n First tested with the inclusion of the problematic digital asset broker definition into the infrastructure bill last year, the tactic of stealthily appending crypto-hostile provisions to gigantic must-pass bills could be crypto opponents\u2019 new weapon of choice. Having examined almost 3,000 pages of the recently introduced America COMPETES Act, crypto advocates found a clause<\/a> that could empower the Treasury Department to bypass existing checks and the logic of due process to order \u201cspecial measures\u201d against certain financial transactions, including those executed using cryptocurrency. Such measures could include imposing surveillance or outright prohibition to financial institutions to offer certain services or products.<\/p>\n The U.S. Securities and Exchange Commission\u2019s principled stance against exchange-traded funds that offer direct exposure to cryptocurrencies is well-known, so its rejection of yet another spot ETF<\/a> last week is not a shocker for anyone who follows this space. Neither is the extension of the review period<\/a> of another BTC-related product, ARK 21Shares Bitcoin ETF: Pushing such deadlines as far back as the existing rules allow is the regulator\u2019s preferred strategy.<\/p>\n Some analysts, however, begin to see this pattern as part of the executive branch\u2019s broader crypto regulatory strategy rather than a single agency\u2019s policy. Bloomberg senior ETF analyst Eric Balchunas opined on Twitter that the SEC\u2019s stance on spot Bitcoin ETF jibes well with the rumors of the Biden administration\u2019s upcoming executive order<\/a> that would cast cryptocurrencies as a national security threat.<\/p>\n<\/div>\nRussia: Competing visions clash<\/h3>\n
Tagging along with omnibus bills<\/h3>\n
Spot BTC ETF shall not pass<\/h3>\n