#296—Gensler’s SEC loses in Congress
Also, deepfake attacks are surging
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This week:
Gensler’s SEC loses in Congress
What people are saying
Deepfake attacks are surging
Stuff happens
1. Gensler’s SEC loses in Congress
Here’s Axios:
Why it matters: The crypto industry began its fight against chairman Gary Gensler's SEC in the courts, but has successfully extended it onto a new field: the legislature.
The latest: In a 60-38 vote in the Senate, legislation striking down the Securities and Exchange Commission's staff accounting bulletin 121, which makes it very expensive for financial institutions to participate in the crypto custody business, has passed.
Notably, 12 democrats joined Republicans in repealing the rule.
The White House has already indicated that they will veto the bill.
2. What people are saying
Sen. Cynthia Lummis:
“The SEC should never set policy—over banks, no less, an industry they do not regulate—through a staff accounting bulletin. This is nothing more than this administration attempting to skirt the law.”
Also:
“This is a win for financial innovation and a clear rebuke of the way the Biden administration and Chair Gary Gensler have treated crypto assets and marks the first time both chambers of Congress have passed standalone crypto legislation.”
House Majority Whip Tom Emmer (via Greg Kidd):
“The SEC’s statutory mission is to protect investors, facilitate capital formation, and maintain fair, orderly, and efficient markets.
Chairman Gensler is violating all three of these with his illegal SAB 121 rule.”
Rep. Mike Flood, architect of the resolution:
“This is a landmark result for digital asset regulation. Both the House and Senate – including Majority Leader Schumer in the Senate – have delivered a clear, bipartisan message to the SEC that SAB 121 needs to go.” Rep. Flood said. “Thank you to Senator Lummis for leading this effort in the Senate and thank you to the bipartisan coalition that supported this repeal in both the House and Senate. It is clear there is overwhelming opposition to SAB 121, and I urge President Joe Biden to reconsider his previous statement of intent to veto the resolution. The President should sign my resolution to ensure the SEC reverses course and sets America on a path to growing our digital financial future.”
Sen. Elizabeth Warren:
"Today's vote, coming more than two years after the SEC wrote the bulletin, and applying to a staff bulletin rather than a rule, is far outside the scope of the CRA. We should not be holding this vote.”
3. Deepfake attacks are surging
Here’s the Guardian (via Mitja Simcic):
The head of the world’s biggest advertising group was the target of an elaborate deepfake scam that involved an artificial intelligence voice clone. The CEO of WPP, Mark Read, detailed the attempted fraud in a recent email to leadership, warning others at the company to look out for calls claiming to be from top executives.
Fraudsters created a WhatsApp account with a publicly available image of Read and used it to set up a Microsoft Teams meeting that appeared to be with him and another senior WPP executive, according to the email obtained by the Guardian. During the meeting, the impostors deployed a voice clone of the executive as well as YouTube footage of them. The scammers impersonated Read off-camera using the meeting’s chat window. The scam, which was unsuccessful, targeted an “agency leader”, asking them to set up a new business in an attempt to solicit money and personal details.
4. Stuff happens
Via Sam Ostler—Temenos launches the first Responsible Generative AI solutions for core banking
BIS, central banks and the IIF invite private financial institutions to join Project Agorá
Study on rising instant payments use | Federal Reserve Financial Services
Lightning Labs Says It Successfully Tested Issuing Stablecoins on the Bitcoin Blockchain - Decrypt