Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets

 LLC, Order No. 22-70-S, at 1 (Alaska Div. of Banking & Sec. Sept. 3, 2022). Voyager pooled customers' crypto assets in an omnibus account and lent those crypto assets to institutional borrowers, including a loan of $350 million (denominated in stablecoins) and 15,250 BTC to Three Arrows Capital. Id. at 2-4; Voyager Digital Ltd., Voyager Digital Provides Market Update (PR Newswire June 27, 2022), available at https://www.prnewswire.com/news-releases/voyager-digital-provides-market-update-301575492.html . Moreover, at least one state in which Voyager was licensed permitted money transmitters to hold up to half of the investments backing customer obligations in higher-risk assets such as publicly traded stocks. See Iowa Code 533C.602(2)(b), (3) (2022); Settlement Agreement and Consent Order at 1, In re Voyager Digital, LLC (Ariz., Ark., Ill., Iowa, & S.D. Dec. 28, 2022). By contrast, the CFTC's regulatory framework limits investments of customer funds by an FCM or DCO to an enumerated set of low-risk instruments, subject to concentration limits, and requires an independent risk management unit, credit and liquidity risk tolerance limits, and periodic risk exposure reporting, as well as disclosure that customer funds are not insured against intermediary insolvency. See CEA 4d(a)(2), 7 U.S.C. 6d(a)(2); 17 CFR 1.11(c), (d), (e)(1)-(2), 1.25(a)(1), (b)(3), 1.55(a), (b)(2)-(c). ------