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Blocking the Skills Gaps in Nigerian Universities: Will Doctors or Professors of Practice Model Work?

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As a recommendation in one of my articles focusing on the skills gaps in Nigerian universities, I had suggested that the Nigerian University System adopts a model that allows industry experts into the classroom. This, in my own opinion, would shorten the distance between theory and practice. It would also enable the students to tap from the experience of the experts. To this recommendation was a question on how that would work as raised by one of the readers of the article. In this piece, I focus on  the professor in practice model examining how it is practiced elsewhere and how the Nigerian University System could adopt and make it work.

Who is a Doctor or Professor of Practice

A professor in or of practice is described in different ways but with similar focus or direction. For example, the HNSC University in Mumbai describes a professor in practice as a distinguished person who has made remarkable contributions in his/her profession from any field and has the ability to take real world practices and experiences into the class rooms. In the same manner, Durham University Business School says that Professors in Practice are experienced professionals across a wide variety of disciplines and sectors, who share their skills and knowledge directly with students bringing public distinction and practical insights to the classroom. In a slightly different manner, the University of Wales Trinity and Saint David calls it Honourary Professor of Practice which offers opportunities for professional and industrial experts to pass on their subject knowledge to the students and give back to the communities they serve. According to the university’s policy, this position is not remunerated as it is considered as an opportunity for the appointed professor to make a difference in the students’ journey and transform lives.

These descriptions point to a number of things in the global discourse for quality, all round education in the tertiary institutions. One, it identifies the limitations of only classroom experience to give the needed knowledge. No matter how immersive the classroom teaching is, it still cannot replace the industry experience. Two, bringing in industry experts into the classroom opens the students to industry insights and could assist in the students’ quest to be industry ready. Thus, the use of industry professors in universities is to bridge the gap between the classroom and the industry and as well address the aperture between theory and application.

The Justification for the Doctor or Professor of Practice

The most important reason for the introduction of professor in practice model has been to reduce the distance between classroom experience and industry practice. Doctors and Professors of Practice bring real-world experience and practical knowledge to the classroom. This bridge between theory and practice helps students understand how concepts are applied in the real world and prepares them for the demands of their future careers.

However, there are other benefits of bringing industry experts to the class. These professionals often have up-to-date knowledge of current industry trends, technologies, and best practices. This ensures that students are exposed to the most relevant and current information, which is crucial in rapidly evolving fields. Besides, it enhances the learning of the students. Students benefit from the firsthand experiences and insights that Doctors and Professors of Practice can share. This experiential learning can be more engaging and memorable, leading to a more effective learning experience. In addition to this is improved employability. Graduates who have learned from Doctors and Professors of Practice are often better prepared for the job market. They possess practical skills and knowledge that are highly valued by employers, making them more competitive in the workforce.

Including professionals from various industries and sectors as Doctors and Professors of Practice enriches the educational experience by offering diverse perspectives and a broader understanding of different career paths. This diversity can inspire students and open their minds to various career possibilities. Equally, students have the chance to build valuable connections with industry experts through Doctors and Professors of Practice. These connections can lead to internships, job opportunities, and mentorship, which are essential for career development. In the same vein, tertiary institutions that attract and retain Doctors and Professors of Practice can enhance their reputation and prestige, making them more appealing to students and potential partners. This also prepares students with practical skills and knowledge and makes them more competitive on a global scale raising the chances of Nigerian graduates excelling in international job markets very high. To support entrepreneurship and innovation, these Doctors and Professors of Practice can serve as mentors and advisors for student startups and innovative projects, fostering a culture of entrepreneurship and innovation.

Flashes of Doctor and Professor of Practice Model in Nigerian Universities

Observations have revealed that there is a flash of this practice in the Nigerian University System. Some selected few universities have adopted bringing experts into the classroom. The Pan African University’s School of Media and Communication, Covenant University and the Department of Mass Communication, Fountain University and some others have some programmes where industry experts come into the classroom to interact with the students. The professor in practice system goes beyond one-off interactions or Meet the Expert programmes. It is a complete immersion of outstanding industry professionals into the four walls of a university to strengthen both theoretical and practical knowledge among students.

 

Accommodating the Professor in Practice in Nigeria Universities

Reviewing Institutional Policies

The first step is to start by reviewing and updating institutional policies to accommodate the introduction of Doctor and Professors of Practice roles. This would ensure  that these roles are recognized and valued within the academic system.

Faculty Recruitment

This involves identifying experienced professionals who have substantial practical knowledge and experience in the relevant fields. They should be individuals who have a track record of success in their respective industries and have the passion to teach. This would require the universities establishing partnerships and collaborations with relevant industries, companies, and organizations to identify potential Doctor and Professors of Practice candidates. Industry input is crucial in selecting candidates who can bridge the gap between academia and real-world practice.

Flexible Requirements

There is a need for the qualification requirements for these positions to be more flexible compared to traditional academic roles. The focus should be on professional expertise and experience rather than a purely academic background. This would facilitate ease of entry for them.

Teaching and Research Balance

The roles of Doctor and Professors of Practice should be well defined with clear emphasis on their contributions to teaching, mentorship, and practical training while also allowing for some level of research activities. These practitioners are to mentor students, providing them with insights into the current state of industries and helping them develop practical skills.

Curriculum Design and Implementation

There should be collaboration with the Doctor and Professors of Practice to develop or update curricula, ensuring that theoretical and practical knowledge are seamlessly integrated. This should include hands-on projects, real-world case studies, and industry-relevant content.

Introduction of Guest Lectures and Workshops

The presence of Doctors and Professors of Practice should diversify the teaching methods incorporating regular guest lectures, workshops, and seminars. These should be  conducted by Doctors and Professors of Practice to expose students to the latest industry trends and challenges.

Recognition and Compensation

To make the model successful and impactful, there should appropriate recognition of the contributions of Doctors and Professors of Practice through appropriate compensation and benefits. Their roles should be seen as valuable to the institution’s overall mission.

In closing this piece, it is apparent that appointing a Doctor or Professor of Practice for universities is a global practice aimed at strengthening industry-academia collaboration and improving industry skills of the students. But, the big question has been whether it would work or not. It should work if tertiary institutions are ready to make changes both in curriculum and pedagogy creating the space for people who have made remarkable contributions in their industry to contribute to increased employability of the graduates.

How To Secure Certification For Aerodromes In Nigeria

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This article will be looking at the process of aerodrome certification in Nigeria which is under the jurisdiction of the Nigerian Civil Aviation Authority( NCAA) via an adoption International Civil Aviation Organization (ICAO) Regulations Annex 14, Volume I which requires that States certify aerodromes(small airports or airfields) used for international operations in accordance with the specifications contained in that Annex as well as other relevant ICAO specifications through an appropriate regulatory framework.

The regulatory framework is required to include the establishment of criteria for certification of aerodromes. As part of the certification process, an aerodrome operator is required to formally apply for the certification of its aerodrome and shall prepare an aerodrome manual giving all pertinent information on the aerodrome site, facilities, services, equipment operating procedures, organisation and management including a safety management system, and complete a Statement of Compliance checklist for submission to the Authority for approval/acceptance.

We will thus be looking at details of the NCAA Framework on aerodromes as follows:-

Basic Requirements For Aerodrome Certifications in Nigeria

Detailed requirements for the certification of aerodromes are given in the Nigeria Civil Aviation Regulations Part 12 (Nig.CARs Part 12) and Advisory Circular NCAA-AC-ARD002.

Applications for Aerodrome Certificate

– An application for the issuance of an Aerodrome Certificate shall be made to the Authority in the form and manner prescribed by the Authority ( i.e. FORM: AC -ARD 002-1 and FORM: AC-ARD002-2).

The application shall be accompanied by:

i.Aerodrome Manual and Statement of Compliance demonstrating that the aerodrome operator’s Aerodrome Manual is in compliance with the relevant provisions of the Nigeria Civil Aviation Regulations Part 12 (Nig.CARs Part 12).

ii.the survey plans of the Aerodrome including obstacle chart ‘A’ showing details of the aerodrome facilities and obstructions marked/lighted as specified in the implementing Standards (IS 12.4.2(2)) of Nig.CARs Part 12;

iii.security clearance from the Federal Government;

iv.written approval from the town planning authority;

v.An Environmental Impact Assessment(EIA) approval from the Ministry of Environment; 

vi.the appropriate fee as prescribed by the Authority ; 

vii.adequate insurance cover; and

viii.particulars of non-compliance with, or deviations from the standards prescribed in Nig.CARs Part 12 and/or Aerodrome Standards Manual (ASM).

Ix Proof of financial capability to operate and maintain the aerodrome.

-Fundamentally, the aerodrome certification process comprises of the following five phases:

Phase 1: 

expression of interest by an applicant 

Phase 2: 

assessing the formal application including evaluation of aerodrome manual;. 

Phase 3: 

Assessment of Facilities and Equipment

Phase 4: 

Grant/refusal of certificate

Phase 5: 

Promulgation in the AIP of the certified status and details of the aerodrome

Flowchart for the processes of Aerodrome certification 

Phase 1

Step 1

Completion and submission of Form: AC- ARD002-1A

Step 2

Clearance letter from Environmental Authority

-Only noise assessment is required for existing aerodromes before 2006 security clearance from Federal Government.

-Not applicable to Federal Government operated aerodrome.

Step 3

– Written approval from the town planning authority

Step 4

– Provision of proof that applicant is financially capable to operate and maintain the Aerodrome

– This is not applicable to existing aerodromes before 2006

Step 5

Certification Meeting

Step 6

– Payment of Aerodrome Construction Fees

– This procedure is not applicable to existing aerodrome constructed before 2006

Phase 2

Step 1

-Completion, submission and evaluation of Form: AC-ARD002-2 together with detailed aerodrome drawings and obstacle charts

-Aerodrome drawings and obstacle chart would be required for aerodromes in existence before 2006, if they have never been submitted to the NCAA.

Step 2

– Approval of drawings and project monitoring till completion

 

Step 3

– Payment of Aerodrome Certification Fees

Step 4

Submission and evaluation of

– Aerodrome Manual

– Airport Security Programme

– Air Traffic Service manuals

– applications for deviations, if necessary

– Also to be provided are written technical and commercial agreements between the applicant and designated providers of air traffic service and meteorological services for the provision of these services(This is applicable to nonfederally operated airports)

-For existing aerodrome,the documents should be submitted with Form:AC-ARD002-2, if it has not been submitted in step 1

Phase 3

Step 1

Physical inspection of:

-Aerodrome facilities and services by aerodrome standards inspectors

-Aviation Security facilities and services by AVSEC inspectors

– ANS facilities and services by ANS inspectors.

Step 2

Provision of insurance cover

Phase 4

Grant or Refusal of Aerodrome Certificate

Phase 5

Step 1

Promulgation of the certified status of the aerodrome in the AIP

Step 2

Update of surveillance plan

Notes

When an aerodrome does not meet the requirement of a standard specified in the Nig.CARs Part 12/ASM, the aerodrome operator must carry out an aeronautical study, to provide an alternative means of compliance, and submit to the Authority. NCAA will evaluate the aeronautical study to determine if the mitigation measures provided by the Aerodrome Operator are acceptable to ensure a level of safety equivalent to that established by the relevant standard. Before NCAA decides to exempt the aerodrome operator, it will take into account all safety-related aspects.

How To Set Up a Licensed Air Freight Forwarding Business in Nigeria

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Aviation Law :- How To Set Up A Licensed Air Freight Forwarder Business In Nigeria

This article deals with how to set up a licensed air freight forwarding business in Nigeria, particularly the subtopics of :-

– The Regulatory agency in charge of licensing air freight forwarding businesses in Nigeria

– The procedure for air freight forwarding license applications

– The validity period of air freight forwarding licenses

– General & Specific licensing requirements for air freight forwarding in Nigeria.

What does an air freight forwarding business do?

Air freight forwarding involves the process of organizing and planning the transport of freight from one point to another by air.

Which regulatory agency is in charge of licensing air freight forwarding businesses in Nigeria?

Air freight forwarding businesses and licensing are regulated by the Nigerian Civil Aviation Authority (NCAA).

What is the procedure for licensing as an air freight forwarding business?

– An application for registration as Air Freight Forwarder shall be made in writing to the NCAA along with the following:-

– A non-refundable processing fee of N100,000 .

–    A completed application form to be returned to the NCAA.                                                                                                      

– A  Certificate of Incorporation of the company;

– A copy of the  Memorandum and Articles of Association of the company;

–  Curricula Vitae of the Directors/Operational staff;

–  Current Tax Clearance Certificates of the company and each of the Directors (originals should also be           submitted for sighting)      

–   Evidence of Agreement with Airline;

– Evidence of registration by the council for the regulation of freight forwarding in Nigeria;

– A   Corporate profile in respect of all aviation -related  services being performed by the applicant-                   company;

–  Audited Statement of Accounts for three years;            

–   Evidence of Insurance coverage for Agency and Air  Freight obligations in case of default, accidents and incidents; and

–    Details of the company’s proposed distribution channel(s).      

What are the General requirements for air freight forwarding businesses in Nigeria?                                

-The   minimum Authorized Share Capital for air freight forwarding businesses shall be Two million Naira (N2, 000,000). 

-Each applicant shall ensure preparedness for the inspection of its office and warehouse premises by            officials of NCAA.   

–  The applicant shall put in place adequate security at its office premises and warehouse to ensure  control and security of goods, to and from the airlines.              

-All personnel involved in cargo acceptance must be trained in Basic Cargo Skills and Procedures.                  They should, inter-alia, be able to:  

(i)      Calculate the transportation time;

(ii)     Calculate chargeable weight;

(iii)    Calculate relevant charges;

(iv)    Complete the Air Waybill (AWB) correctly;

(v)     Have knowledge of conditions of carriage and airline liability;

(vi)    Have basic knowledge of relevant characteristics of aircraft; and

(vii)   Make reference to and use relevant manuals. 

What are the specific requirements for air freight forwarding businesses in Nigeria as prescribed by the NCAA?     

– For handling Dangerous Goods and other special goods, the following additional requirements shall be fulfilled:

(I)  The applicant must have at least two qualified personnel with certificates on Dangerous Goods   Regulation (DGR) as appropriate (i.e. current within the validation period of 24 months).  

(II)  The applicant must be able to make reference to and use the Life Animal Regulation (LAR) and the  Air Cargo Tariff (TACT) Rules Manuals correctly.

(III) The applicant must be able to select special cargoes and have adequate knowledge on how to  handle them safely.

(IV)      The applicant must submit a copy of its dangerous goods manual for evaluation and approval.

(V)       The applicant must have current copy of the ICAO Technical Instructions, TI (updated every 2yrs)   or IATA manual, or other Dangerous Good regulatory manual.

(VI)      The applicant must ensure that shipments of dangerous goods are accepted and offered for transport             in accordance with the Nigerian CAR, Part 15 and ICAO Technical Instruction for the transport of dangerous goods.

(VII)       The applicant must make available emergency response guide for all shipments.

Senator Cynthia Lummis asks the Department of Justice to criminally charge Binance and Tether USDT

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In a letter dated October 65, 2023, US Senator Cynthia Lummis urged the Department of Justice (DOJ) to take action against Binance and Tether, two of the largest players in the cryptocurrency industry. Lummis accused them of engaging in illegal activities that pose a threat to the national security and financial stability of the United States

Lummis, who is a member of the Senate Banking Committee and a vocal supporter of Bitcoin, wrote that Binance and Tether have been operating in the US without proper registration and oversight, violating anti-money laundering and sanctions laws, facilitating market manipulation and fraud, and exposing investors to significant risks.

She cited several reports and investigations that have raised serious concerns about the legitimacy and transparency of Binance and Tether, such as:

The DOJ’s ongoing criminal probe into Binance for allegedly allowing US customers to trade on its platform without complying with US regulations.

The New York Attorney General’s settlement with Tether and its affiliated exchange Bitfinex, which revealed that Tether had misrepresented the backing of its stablecoin USDT and had used it to cover up an $850 million loss.

The Financial Action Task Force’s (FATF) assessment that Binance and Tether are among the “red flag” entities that pose a high risk of money laundering and terrorist financing.

The Securities and Exchange Commission’s (SEC) lawsuit against Ripple, which alleged that Ripple sold its cryptocurrency XRP as an unregistered security and that Binance was one of the major platforms that facilitated the illegal sales.

Binance and Tether are two of the most prominent players in the cryptocurrency industry, but they are also facing serious legal troubles. The Department of Justice (DOJ) has reportedly asked the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS) to investigate whether Binance and Tether have violated any criminal laws, such as money laundering, tax evasion, or sanctions violations.

Binance is the world’s largest cryptocurrency exchange by trading volume, offering hundreds of digital assets and derivatives to millions of users around the globe. Tether is the issuer of the most widely used stablecoin, USDT, which is pegged to the US dollar and backed by reserves of cash and other assets. USDT is often used as a medium of exchange and a store of value in the crypto market, especially in countries with capital controls or unstable currencies.

However, both Binance and Tether have been accused of operating with a lack of transparency and regulatory compliance. Binance has been under scrutiny for allegedly facilitating illicit transactions, such as money laundering, terrorist financing, and market manipulation. The exchange has also faced regulatory actions and warnings from several countries, including the UK, Japan, Germany, Canada, and Singapore.

Tether has been under investigation for allegedly issuing more USDT than it can back with its reserves, creating a systemic risk for the crypto market. The company has also been sued by the New York Attorney General (NYAG) for allegedly concealing a loss of $850 million in funds that were supposed to back USDT. The NYAG has reached a settlement with Tether in February 2021, requiring the company to pay $18.5 million in fines and submit periodic reports on its reserves.

The DOJ’s request to criminally charge Binance and Tether is a significant escalation of the legal pressure on the crypto industry. If the DOJ decides to indict Binance and Tether, it could have serious consequences for both companies and their users. For instance, Binance could face asset freezes, fines, or even a shutdown of its operations in the US or other jurisdictions. Tether could face a loss of confidence in its stablecoin, leading to a run on its reserves or a collapse of its peg to the dollar.

The DOJ’s request also reflects the growing regulatory attention on the crypto space, as more governments and agencies seek to establish rules and standards for this emerging sector. The DOJ’s request could signal a more coordinated effort among different regulators to crack down on crypto-related crimes and protect consumers and investors from fraud and abuse.

The crypto industry is facing a critical moment in its history, as it balances innovation and growth with compliance and accountability. Binance and Tether are not the only ones under legal scrutiny, as other crypto companies and projects are also facing lawsuits, investigations, or regulatory actions. The outcome of these legal battles could shape the future of the crypto market and its role in the global financial system.

The Commodity Futures Trading Commission’s (CFTC) investigation into whether Binance offered illegal futures and derivatives products to US customers. Lummis argued that these actions by Binance and Tether have undermined the credibility and innovation of the cryptocurrency sector, which she believes has great potential to benefit the US economy and society. She urged the DOJ to “use all available tools” to hold Binance and Tether accountable for their “egregious violations” and to protect US consumers and national interests.

She also called on the DOJ to coordinate with other federal agencies, such as the Treasury Department, the SEC, the CFTC, and the Federal Reserve, to develop a clear and consistent regulatory framework for cryptocurrencies that would foster innovation while preventing abuse.

Lummis concluded her letter by stating that she is committed to working with the DOJ and other stakeholders to ensure that the US remains a leader in the development and adoption of cryptocurrencies, while also safeguarding its security and prosperity.

Aptos Blockchain, Bandai Namco, FDIC, NYAG, Reddit Community and other Crypto News

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Aptos, a leading provider of retail solutions, announced that it has successfully restored its network services after a five-hour disruption that affected some of its customers. The company said that the outage was caused by a hardware failure in one of its data centers, and that it has taken steps to prevent similar incidents in the future. Aptos apologized for any inconvenience caused by the network issues and thanked its customers for their patience and understanding.

Bandai Namco has announced that it will temporarily suspend the downloads of its new mobile game, Gundam Metaverse, due to technical issues. The game, which was launched on October 25, is a social VR platform that allows players to create and customize their own Gundam robots and interact with other fans. However, some users reported problems with logging in, loading scenes, and accessing features.

Bandai Namco apologized for the inconvenience and said it is working to fix the issues as soon as possible. The company did not specify when the downloads will resume but assured that players who have already downloaded the game can continue to play it normally.

The New York Attorney General (NYAG) has filed a complaint against Gemini Trust Company, Genesis Global Trading, Digital Currency Group, Michael Moro and Barry Silbert for allegedly violating the state’s securities laws with their Earn product. The Earn product allows customers to lend their cryptocurrency holdings to Genesis in exchange for interest payments.

The NYAG claims that the defendants failed to register the Earn product as a security offering and misled investors about the risks and returns of the product. The NYAG seeks to stop the defendants from offering the Earn product in New York and to impose civil penalties and restitution.

Paolo Ardoino, the chief technology officer of Bitfinex and Tether, has expressed his enthusiasm for RGB, a protocol that enables the issuance of tokens on the Bitcoin network. In a recent interview, Ardoino said that RGB is the “best opportunity” to create stablecoins on Bitcoin, as it preserves the security and decentralization of the underlying blockchain.

He also revealed that Bitfinex and Tether are working on integrating RGB into their platforms, and that they plan to launch USDT, the largest stablecoin by market capitalization, on RGB in the near future. Ardoino believes that stablecoins on Bitcoin will have many advantages, such as lower fees, faster transactions, and interoperability with other RGB-based tokens and applications.

SynFutures, a decentralized exchange (DEX) for trading derivatives, has announced that it has raised $22 million in a Series A funding round led by Polychain Capital. The DEX allows users to trade futures, perpetual swaps, and options on any asset, including cryptocurrencies, commodities, and stocks. SynFutures aims to provide a more transparent and flexible platform for derivatives trading, as well as lower fees and higher capital efficiency. The DEX is currently in beta and plans to launch its mainnet in the first quarter of 2022.

One of the potential use cases of SynFutures is to enable users to hedge against the volatility of crypto markets. For example, users can short sell Bitcoin futures to protect themselves from a price drop or buy Ethereum options to profit from a price increase. SynFutures also supports cross-margin trading, which means users can use multiple assets as collateral for their positions.

The DEX is powered by its native token, SYN, which is used for governance, liquidity mining, and fee discounts. SynFutures has not yet decided whether to launch its token through an initial DEX offering (IDO) or another mechanism, but it is open to the idea. The DEX plans to use the new funding to expand its team, develop new features, and grow its user base.

A scandal has erupted in the Reddit community after two moderators of popular subreddits allegedly dumped their tokens before the platform announced the end of its blockchain experiment. The program, which allowed users to earn and trade tokens based on their contributions to selected subreddits, was abruptly terminated on October 25, 2023. According to blockchain data, two moderators of r/CryptoCurrency and r/FortNiteBR sold large amounts of their tokens just hours before the announcement, raising suspicions of insider trading and breach of trust.

The trial of Sam Bankman-Fried, the founder and CEO of cryptocurrency exchange FTX, is nearing its end as both sides have submitted their proposed jury instructions to the court. Bankman-Fried is accused of violating anti-money laundering laws and conspiring to defraud investors by manipulating the prices of digital assets on his platform. The US prosecutors have asked the judge to instruct the jury that they can find Bankman-Fried guilty if they conclude that he acted with intent to deceive or cheat, or that he knowingly participated in a scheme to do so.

They also want the jury to consider the evidence of Bankman-Fried’s communications with his employees and associates, as well as his control over the operations and transactions of FTX. The defense lawyers, on the other hand, have argued that Bankman-Fried did not have any criminal intent or knowledge of any wrongdoing, and that he acted in good faith and in compliance with the law.

They have requested the judge to instruct the jury that they must acquit Bankman-Fried if they have any reasonable doubt about his guilt, and that they should not infer any guilt from his wealth or success in the cryptocurrency industry. They have also challenged the credibility and reliability of some of the government’s witnesses and evidence.

FDIC needs to do more to prepare for Crypto Risks amid SEC’s agency staff ‘doing work’ on multiple Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) is actively reviewing several applications for bitcoin exchange-traded funds (ETFs), according to the agency’s chairman Gary Gensler. In a recent interview with CNBC, Gensler said that the SEC staff is “doing work” on multiple bitcoin ETF filings, some of which are seeking approval under the Investment Company Act of 1940. He added that the SEC is also looking at other types of crypto-related products, such as futures-based ETFs and mutual funds.

Bitcoin ETFs are seen as a potential catalyst for more institutional and retail adoption of the leading cryptocurrency, as they would provide a regulated and convenient way for investors to gain exposure to bitcoin without having to buy and store it directly. However, the SEC has so far rejected or delayed every bitcoin ETF proposal that has come before it, citing concerns over market manipulation, fraud, and investor protection.

Gensler, who took office in April 2021 has expressed interest in facilitating innovation in the crypto space, but also emphasized the need for more regulation and oversight. He has repeatedly called on Congress to grant the SEC more authority and resources to regulate crypto exchanges, platforms, and products. He has also suggested that some crypto assets, especially those that are centrally issued or controlled, may fall under the SEC’s jurisdiction as securities.

While Gensler did not give a timeline or a hint on whether the SEC will approve any bitcoin ETFs in the near future, he said that he hopes to provide more clarity and guidance for the crypto industry as soon as possible. He also urged investors to be cautious and do their homework before investing in any crypto-related products or services.

The Federal Deposit Insurance Corporation (FDIC) is the agency that protects depositors from bank failures in the US. However, a recent report by its own inspector general has found that the FDIC is not adequately prepared to deal with the potential risks posed by cryptocurrencies and other digital assets.

The report, which was released on October 25, 2023, identified several areas where the FDIC needs to improve its readiness and response to crypto-related issues. These include:

Developing a clear and consistent definition of crypto assets and their regulatory status. Enhancing its supervision and examination of banks that are involved in crypto activities or offer crypto services to customers. Establishing a dedicated team of experts and coordinators to monitor and analyze crypto trends and developments. Providing more guidance and training to its staff and stakeholders on crypto risks and best practices. Strengthening its coordination and collaboration with other federal and state regulators, as well as international counterparts

The report also highlighted some of the challenges and opportunities that crypto assets present for the FDIC and the banking industry. For instance, crypto assets could increase financial inclusion, innovation, and efficiency, but they could also pose operational, reputational, legal, and cyber risks for banks and their customers. Moreover, crypto assets could affect the FDIC’s deposit insurance fund, resolution authority, and consumer protection mandate.

The report concluded that the FDIC needs to take proactive steps to address these issues and prepare for the evolving crypto landscape. It recommended that the FDIC develop a comprehensive crypto strategy and action plan, as well as update its policies and procedures accordingly. It also urged the FDIC to allocate sufficient resources and staff to implement its crypto initiatives.

The FDIC has agreed with most of the report’s findings and recommendations and has stated that it is working on enhancing its crypto capabilities and oversight. However, it also noted that some of the recommendations may require legislative or regulatory changes, which are beyond its control. The FDIC has requested more time to provide a detailed response and timeline for its actions.