Crypto News: Argentina Regulates Virtual Assets, US Moves Toward Strategic Bitcoin Reserve

The crypto landscape saw significant developments today, with Argentina finalizing new regulations for cryptocurrency service providers and the United States taking steps to institutionalize Bitcoin in its financial strategy. Here’s a breakdown of the most important events in the world of crypto today:

Argentina Sets New Regulations for Crypto Firms

Argentina has finalized comprehensive rules aimed at governing the country's virtual asset service providers (VASPs). On March 13, the National Securities Commission (CNV) issued General Resolution No. 1058, outlining detailed regulations for companies involved in cryptocurrency exchanges and digital asset transactions. These new rules are designed to ensure transparency, stability, and protection for crypto users in the country.

The regulations include strict requirements for registration, cybersecurity measures, custody of assets, money laundering prevention, and risk disclosures. The goal is to provide a safer environment for crypto users and foster confidence in the country’s digital asset ecosystem.

In practical terms, VASPs will need to separate client funds from company funds, undergo annual audits, and provide monthly reports to the CNV. Moreover, starting in 2024, these service providers will be required to register with the PSAV (the registry of virtual asset service providers). Non-compliance could result in the revocation of licenses and even court orders to block non-registered operations.

US Representative Moves to Codify Trump's Bitcoin Reserve

In the United States, a new bill is being introduced to formalize former President Donald Trump’s executive order that called for the establishment of a US Strategic Bitcoin Reserve. The executive order, signed on March 7, authorizes the use of Bitcoin seized from criminal cases to create a national reserve.

Florida Republican Representative Byron Donalds is spearheading the legislative effort, which seeks to solidify the reserve as a permanent feature of the nation's financial system. This move would prevent future administrations from dismantling the reserve through executive actions.

In a statement to Bloomberg, Rep. Donalds emphasized the importance of securing Bitcoin’s place in the country’s financial future. “For years, the Democrats waged war on crypto. Now is the time for Congressional Republicans to decisively end this war,” he said. If the bill passes, it would provide long-term legal protection for the Strategic Bitcoin Reserve and ensure the country’s digital asset strategy remains intact.

The bill, which will need a Senate majority of at least 60 votes and a majority in the House to pass, has a reasonable chance given the current crypto-friendly stance of many Republican lawmakers.

Sacks' VC Firm Divests Over $200 Million in Crypto Assets Before White House Role

David Sacks, co-founder of the venture capital firm Craft Ventures, sold more than $200 million worth of cryptocurrency and related stocks before assuming his role as the White House AI and Crypto Czar. A White House memorandum, dated March 5, revealed that Sacks, in an effort to mitigate potential conflicts of interest, offloaded holdings in assets such as Bitcoin, Ethereum, and Solana prior to President Trump’s inauguration in January.

The sale was part of a series of steps taken to ensure that Sacks could carry out his duties with a clear focus on helping establish a legal framework for the rapidly growing crypto industry. According to the memorandum, Sacks’s divestment included liquid cryptocurrency positions from both his personal portfolio and that of Craft Ventures.

This move demonstrates the White House’s attempt to maintain transparency and avoid conflicts of interest as Sacks takes on the responsibility of shaping US policy on AI and crypto.

In Summary:

Today’s developments highlight significant regulatory and legislative efforts shaping the future of crypto in both Argentina and the United States. Argentina is taking a firm stance on the regulation of virtual asset service providers, while the US is seeking to secure Bitcoin’s position in the national financial system. Meanwhile, high-profile figures like David Sacks continue to navigate the intersection of crypto and government, further influencing the landscape of digital assets.