Crypto exchange Gemini dismisses the SEC's lawsuit against its Earn program, claiming that the regulatory agency is floundering and contradicting itself in its classification of the program as a security.
Seven leading AI development firms have voluntarily agreed to comply with best practices to ensure the safety, security, and trustworthiness of AI technology, as announced at the White House. The Federal Reserve has also raised concerns about the potential risks posed by quantum computers and AI to the US financial system. Additionally, a disagreement among judges has arisen in the ruling of an SEC enforcement action, and the SEC has proposed rules for digital engagement practices and "robo-adviser" registration. The Depository Trust & Clearing Corporation (DTCC) has announced the wind down of its Global Markets Entity Identifier business, and the enforcement of the California Privacy Rights Act of 2020 has been delayed until March 2024. Finally, Texas has implemented comprehensive privacy legislation through the Texas Data Privacy and Securities Act.
The US Department of Justice (DOJ) is reportedly investigating whether cryptocurrency exchange Binance has violated US sanctions against Russia by facilitating ruble-to-crypto trades, adding to existing allegations of market manipulation and anti-money laundering violations, which could have significant implications for the broader cryptocurrency ecosystem.
The U.S. Securities and Exchange Commission (SEC) has implemented new rules aimed at increasing transparency and accountability in the private equity and hedge fund industry, requiring the issuance of quarterly fee and performance reports, disclosure of fee structures, and annual audits, while banning preferential treatment for certain investors.
Prominent lawyer and founder of CryptolawUS, John Deaton, criticizes the SEC for charging Ripple CEO Brad Garlinghouse and argues that if former SEC leaders had testified earlier, the entire situation could have been avoided.
Attorney John Deaton addressed the importance of accountability within regulatory bodies, emphasizing the need to hold both current and previous figures responsible, such as Gary Gensler and Jay Clayton, to maintain fairness and consistency in regulatory actions, particularly in relation to the "Safe Harbor" proposal for cryptocurrencies. Deaton also discussed the complexities of the Ripple legal case and the potential influence it may have on the SEC's approach to other cryptocurrencies, highlighting the urgency of regulatory clarity in order to prevent financial harm in the industry.
The Securities and Exchange Commission (SEC) may have suffered setbacks in its regulation-by-enforcement approach to the cryptocurrency industry, with the latest ruling in favor of Grayscale Investments potentially paving the way for the emergence of a bitcoin spot exchange-traded fund (ETF); however, the SEC could appeal the decision or find new ways to deny similar applications, and the lack of a regulated exchange for the bitcoin spot market remains a challenge. Despite court challenges, SEC Chair Gary Gensler is expected to continue pursuing his regulation tactics, while Congress and a potential Republican president in 2024 may play a role in shaping the regulatory environment for digital assets.
The SEC's denial of Grayscale's spot Bitcoin ETF application has been reviewed by a judge due to the SEC's failure to provide a coherent explanation, while the SEC also delayed verdicts on several Bitcoin spot market ETF applications, including BlackRock's, causing prices to rally; in other news, Circle's USDC stablecoin has experienced a significant decrease in market cap, SEC Commissioner Hester Peirce criticized the SEC's attempt to bring crypto exchanges under its jurisdiction, a lawsuit against Uniswap was dismissed by a New York judge, StarkWare zeroed all user balances on old wallets, Vivek Ramaswamy celebrated Grayscale's win over the SEC, the SEC delayed its verdict on multiple ETF applications including BlackRock's, and Chinese courts considered cryptocurrencies legal property protected by law.
U.S. Securities and Exchange Commission Chair Gary Gensler continues to emphasize the importance of crypto companies complying with securities laws, despite recent setbacks in court cases against the industry. Gensler will discuss recent enforcement actions and proposals related to cryptocurrency firms but will avoid discussing ongoing litigation, including high-profile cases against Coinbase and Binance.
Senator Sherrod Brown has expressed a negative view of the crypto industry, stating that it is rife with fraud and abuse, making his support crucial for any future crypto legislation in the US. Securities and Exchange Commission Chair Gary Gensler has also criticized the sector, but Brown's stance is seen as pivotal for the industry's regulatory framework.
The Blockchain Association reflects on the past five years of the crypto industry's challenges in Washington D.C. and highlights potential future areas of focus, including anti-money laundering efforts, passing crypto-related legislation, and the possibility of regulatory personnel changes.
The U.S. Securities and Exchange Commission's head of the Crypto Assets and Cyber Unit, David Hirsch, announced that the agency will continue to pursue crypto exchanges and DeFi projects for violating securities laws, similar to Coinbase and Binance, stating that they have several other businesses on their radar; however, the SEC's current litigation load is heavy and they are limited in their capacity to take action against all entities.
The UK's Financial Conduct Authority (FCA) has warned cryptocurrency businesses to comply with new financial promotion rules, as the majority of firms are ignoring them; failure to comply could result in imprisonment, fines, or both. Only 24 out of over 150 firms have responded to the FCA's survey regarding the new rules, which will severely restrict communication of financial promotions from unauthorized crypto businesses.
The Messari Mainnet conference in New York was more professional and focused on regulation compared to previous years, indicating a shift towards a more mature and practical approach in the crypto industry. Attendees emphasized the need for clear regulatory guidelines and discussed the challenges of innovating under the watchful eye of US regulators. The industry is evolving and becoming less speculative, with a greater emphasis on real-world applications and practical tools.
Former head of the US Securities and Exchange Commission (SEC) Office of Internet Enforcement, John Reed Stark, is urging federal agencies to bring criminal charges against the parents of former FTX CEO Sam Bankman-Fried, suggesting that they may have benefited from their son's alleged wrongdoings and could be named as "relief defendants." Stark also called on the Department of Justice (DOJ) to initiate crypto-related criminal proceedings to impose serious consequences and deter future offenses.
The U.S. Securities and Exchange Commission (SEC) has escalated its probe into Wall Street's use of private messaging apps by collecting thousands of staff messages from over a dozen major investment companies, raising the stakes for the companies and executives involved, and potentially exposing their conduct to SEC scrutiny.
Experts suggest that the crypto industry's most urgent needs, such as SEC decisions on ETF applications and progress in court cases, won't be entirely derailed by a potential government shutdown, although there may be temporary slowdowns and a halt to SEC enforcement against crypto firms. Federal courtrooms are expected to operate normally for a few weeks, and criminal trials will continue, but the progress of cryptocurrency legislation in Congress may be stalled. If the shutdown persists, it may have significant repercussions as unpaid employees leave and government offices exhaust their funds.
Coinbase CEO Brian Armstrong emphasizes the importance of the US establishing a regulatory framework for crypto assets, stating that it is a national security issue and that the country is falling behind other major economies in terms of regulatory clarity, resulting in a decline in the US job market share for the crypto industry.
Summary: U.S. regulators provided minimal updates to the global crypto community this week, with the SEC approving VanEck's Ethereum futures ETF and lawmakers in Washington appearing to be less proactive than their European counterparts, while various crypto-related incidents and controversies unfolded on social media platforms.
Venture capital firm Paradigm accuses the SEC of overstepping its boundaries and argues that Congress should be responsible for filling regulatory gaps in cryptocurrencies, not the SEC, as it could harm innovation and destabilize markets outside its jurisdiction.
The Hong Kong Police Force and Securities and Futures Commission have formed a working group to address illicit cryptocurrency exchange activities, particularly in response to the ongoing crypto scandal involving JPEX exchange, aiming to enhance monitoring, investigation, and collaboration on suspicious activities.
Coinbase, the largest US crypto exchange, argues that a proposed IRS rule to define crypto brokers and regulate tax payments will threaten the industry and invade Americans' privacy.
The US Oversight and Accountability Committee is frustrated with SEC Chair Gary Gensler for not disclosing documents related to the SEC's involvement in European social engineering initiatives, amid growing concerns over his cautious stance towards cryptocurrencies and his intensified regulatory scrutiny of the industry. Meanwhile, the macroeconomic landscape is focused on relaxing financial conditions, potentially leading to significant developments in the cryptocurrency market, particularly for altcoins like Chainlink, Polygon, Cardano, Ripple, and Polkadot.
