US Credit Card Company to Integrate USDC, SEC No-Action Letter Addresses ERC20 Token, Tax Bodies Address Crypto, US and State Enforcement Continues
Blog The Blockchain Monitor
Baker & Hostetler LLP
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OECD, USA December 4 2020
In this issue:
• Credit Card Company to Integrate USDC Payments, 401(k) Advisor Integrates Bitcoin
• SEC Issues No-Action Letter on Digital Assets, Second Addresses ERC20 Token
• FinHub Role Expands, Foreign IPO and Lending Service Integrates Crypto
• Tax Bodies Address Cryptocurrencies, Exchanges React to Evolving Landscape
• US and State Enforcement Agencies Take Action Against Crypto Fraud Schemes
• Foreign Regulators Scrutinize Privacy Coins, Seize/Sell Criminal Crypto
Credit Card Company To Integrate USDC Payments, 401(k) Advisor Integrates Bitcoin
A major U.S. credit card company has announced plans to link its global payments network of over 60 million merchants to a cryptocurrency startup’s Ethereum-based U.S. Dollar Coin (USDC). Although the credit card company itself will not custody the digital asset, the two companies will begin working to help credit card issuers begin integrating software for USDC into their platforms to enable USDC payments. Those businesses will in turn be able to send international USDC payments to any business supported by the credit card company, convert USDC into the local national currency and spend the funds anywhere that accepts the company’s credit card. The companies also plan to release a new credit card in the future that lets businesses send and receive USDC payments directly from any business using the card.
Digital Asset Investment Management (DAiM), a California-based registered investment advisor, recently announced that it has launched the first ERISA-compliant employer-sponsored 401(k) plans that integrate bitcoin into plans’ asset allocation. DAiM will serve as advisor and fiduciary to companies looking to create model portfolios of varying risk profiles comprising traditional assets and allocations of up to 10 percent of bitcoin.
A Japanese banking giant has announced plans to launch a blockchain payment network in 2021. The company expects the network to be fully functional throughout Japan by summer 2022.
For more information, please refer to the following links:
Visa Partners With Ethereum Digital-Dollar Startup That Raised $271 Million
Digital Asset Investment Management (DAiM) launches first ERISA compliant employer-sponsored 401(k) plans with Bitcoin
Japan’s Banking Giant MUFG Plans to Launch Blockchain Payment Network in 2021
SEC Issues No-Action Letter on Digital Assets, Second Addresses ERC20 Token
The Division of Corporation Finance (CorpFin) of the U.S. Securities and Exchange Commission (SEC) issued its third no-action letter addressing digital assets, which is its second no-action letter addressing an ERC20 token. The no-action letter request involves “an online software application that people use to interact in virtual venues, play games … and offer and obtain virtual goods and services.” The “heart” of the platform is a virtual economy using digital credits, which cannot be transferred or used off the platform. The platform requested no-action relief to use an ERC20 token instead of the credits. The ERC20 token would have real value and can be transacted on and off the platform. CorpFin noted significant factors in granting the no-action relief, which include:
The company will not use proceeds from the sale of the digital asset to finance the upgrade from credits to the digital asset, which will be fully functional and operational immediately upon its launch and before any digital asset is sold.
The digital asset will be immediately usable for its intended purpose at the time it is sold.
Digital asset holders will be subject to know your customer/anti-money laundering checks when they establish open wallets and on an ongoing basis.
The digital asset will be made continuously available in unlimited quantities and at a fixed price.
The company will not promote or support listing or trading of the digital asset on any third-party trading platform.
Users who purchase the digital asset from the company will be required to affirm that they are acquiring the digital asset for consumptive use and not for speculative purposes.