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Regulation

Sources claim ‘sympathetic’ Trump is considering pardon for Silk Road founder

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According to The Daily Beast, outgoing U.S. president Donald Trump is considering granting clemency to Ross Ulbricht — the founder and operator of the pioneering darknet market, Silk Road.

Ulbricht was arrested in 2013 and received two life sentences without parole for non-violent offenses in 2015.

The anonymous sources relied on in the report claim that the White House counsel’s office has been reviewing documents related to Ulbricht’s case, and that the President has been made aware of the situation.

Two sources claim that Trump has privately expressed sympathy for Ulbricht and has considered his name for the next round of pardons.

Speaking to the publication, Ulbricht’s mother Lyn expressed admiration for Trump’s criminal justice reform policies, adding:

“We’re praying and remain hopeful that he will show mercy on Ross, as he has others, and commute his sentence to time served and give my son a second chance at life.”

Jo Jorgensen, the 2020 candidate for the Libertarian Party, campaigned for the pardoning of Ulbricht, in addition to whistle blowers Edward Snowden and Chelsea Manning.

Trump has a little over a month to grant the pardon, with President-elect Joe Biden being sworn into office on Jan. 20.



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Regulation

New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.