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The SEC faces a series of legal challenges, including a recent rebuke from the Fifth Circuit Court, highlighting scrutiny over its regulatory decisions and potential implications for the cryptocurrency market. Recent legal proceedings have prompted commentary from Ripple’s Chief Legal Officer, Stuart Alderoty, regarding the United States Securities and Exchange Commission’s (SEC) actions under the leadership of Chair Gary Gensler. Alderoty has pointed to a “deeply concerning trend” of decisions by the SEC that he considers to be arbitrary and lacking a solid legal foundation. Another day and another Court finds that the SEC again acted arbitrarily and capriciously. Is anyone else concerned about this very troubling pattern of the SEC flouting any faithful allegiance to law under Mr. Gensler? https://t.co/5bUgSBUOI8 — Stuart Alderoty (@s_alderoty) November 1, 2023 The commentary follows a decision by the Fifth Circuit Court of Appeals, which on Oct. 3...

Inflows in crypto currency investment products from October 7 to October 13 reached $15.2 million, compared to $78.4 million a week earlier.  According to CoinShares analysts, the amount was 27% below the 2023 average. Experts explained that the data provided does not include positive news for digital gold regarding the SEC’s refusal to appeal the court’s decision in the case of converting the Grayscale Bitcoin Trust into an ETF. Such developments have increased the chances of the product launch, according to market observers. Bitcoin (BTC) funds recorded an inflow of $16.4 million compared to $42.7 million in the previous reporting period. Investors invested $1.7 million in products that allow opening shorts on the first crypto currency (a week ago it was $1.2 million). Source: CoinShares Meanwhile, investors withdrew $7.4 million from Ethereum (ETH) funds . The previous week, against the backdrop of the start of trading in Ethereum-ETF futures, there was an influx of $10.2 ...

ProShares' SETH ETF will start trading soon, following the first Ethereum futures ETFs by about two weeks. ProShares introduced a trio of Ethereum futures ETFs in the recent weeks. Presently, the company is gearing up to provide a distinctive offering. ProShares' Short Ether Strategy ETF (SETH) from the fund group is poised to commence trading shortly, following the debut of the initial Ethereum futures ETFs by about two weeks. SETH, scheduled for listing on the NYSE Arca exchange, aims to achieve daily investment outcomes that mirror the inverse of the daily S&P CME Ether Futures Index performance, as indicated in a filing made on Friday, Oct. 13. The fund does not engage in direct shorting of ether (ETH); rather, it seeks to capitalize on potential declines in the asset's value, as stated in the prospectus. On Friday, the price of ETH stood at approximately $1,540, reflecting a decrease of approximately 6% over the past week. Screenshot of the ProShares SETH filing  ...

Paradigm pointed out that the SEC is attempting to use the concerning accusations in its complaint as a means to alter the law, all without adhering to the established rulemaking process. Paradigm, a crypto venture capital firm, has criticized the United States Securities and Exchange Commission (SEC) for bypassing the standard rulemaking procedures in their current legal action against the cryptocurrency exchange Binance. In a statement released on Friday, Sept. 29, Paradigm pointed out that the SEC is attempting to use the concerning accusations in its complaint as a means to alter the law, all without adhering to the established rulemaking process. Paradigm firmly believes that the SEC is exceeding its regulatory boundaries, and we strongly oppose this tactic, they further stated. Back in June, the SEC initiated a legal action against Binance, accusing them of multiple violations of securities laws, such as operating without the necessary registration as an exchange, broker-dealer...

Despite BlackRock’s application for a Bitcoin spot ETF, its approval remains uncertain, with the SEC favoring another futures-based Ether ETF. The race to list the first spot-traded Bitcoin (BTC) exchange-traded fund (ETF) in the United States has seen the entrance of major financial institutions like BlackRock, Fidelity and VanEck.  While the U.S. Securities and Exchange Commission (SEC) first approved a Bitcoin-linked Futures ETF in October 2021, the current filing s are for spot Bitcoin ETFs. Following Grayscale’s recent legal victory against the SEC’s review of its spot Bitcoin ETF proposal, many now believe approval of the investment funds is more likely. The interest of BlackRock — the world’s largest asset manager with over $8 trillion worth of assets under management — prompted several other institutions to refile for a spot Bitcoin ETF. Most of these asset managers had to either withdraw their spot Bitcoin ETF filing s or face rejection due to the SEC’s reservations concerni...

The SEC argues that as ETH validators are concentrated more densely in the United States, ETH transactions are seen as taking place in the country. The Securities Exchange Commission (SEC) has made an unprecedented claim that Ethereum transactions take place in the United States as ETH nodes are “clustered more densely” in the United States than any other country.  The SEC argument is found within a Sept. 19 lawsuit against crypto researcher and YouTuber Ian Balina, which alleged, among many other complaints, that Balina conducted an unregistered offering of Sparkster (SPRK) tokens when he formed an investing pool on Telegram in 2018. The SEC claims that at the time that U.S.-based investors participated in Balina’s investing pool, the ETH contributions were validated by a network of nodes on the Ethereum blockchain, “which are clustered more densely in the United States than in any other country.” The SEC argued that as a result, “those transactions took place in the United States.”...

Ethereum is scheduled to implement the Shapella hard fork or Shanghai upgrade in eight days. This update will enable stakers to unlock their staked ETH. However, some investors are concerned about the potential for a significant sell-off of Ether on exchanges. While the sell-off fear persists on one side, another fear about what could happen with the SEC post-upgrade has also surfaced. The SEC has ramped up its scrutiny of the cryptocurrency realm ever since the fall of the FTX exchange. Also read: Bitcoin: MicroStrategy Buys 1045 BTC for $29.3 Million Things have become even worse as the SEC tries to label all cryptocurrencies, except Bitcoin, as sec urities. Enabling staked Ethereum withdrawal could elevate backlash Lara Gatz, who is a new partner in the global regulatory enforcement practice of Reed Smith LLP and a former federal pro sec utor with the Department of Justice, stated how Ethereum could face backlash for enabling the withdrawal of staked Ether. ...

Potential Settlement in View Heather and her husband have been embroiled in a Crypto Theft case in which both were accused of being extensively involved in laundering up to $4.5 billion in Bitcoin. According to a Bloomberg report, citing people familiar with the matter, the couple duo are scheduled to appear for a plea hearing on August 3.  advertisement This schedule comes after a year since both couples were charged in what is regarded as one of the highest-profile fraud cases in the industry today. Per the report, the couple had been requested by US District Judge Colleen Kollar-Kotelly to provide a copy of the plea agreement by July 27 even though the exact details of the plea remain unknown. Heather and Ilya were indicted as being a co-conspirator in the 119,754 units of Bitcoin stolen after the 2016 hack of the cryptocurrency exchange Bitfinex. The couple was accused of opening multiple accounts to siphon the funds through multiple exchanges and dark...

Trevor Power hopes the framework will fall closer on the “spectrum” to the EU’s MiCA, as opposed to the current regulatory position in the U.S. The Australian Treasury’s token mapping of digital assets will adopt a “tech agnostic ” and “principles-based” approach in order to define crypto assets, according to a Treasury official . Speaking to Cointelegraph on June 26 at the Australian Blockchain Week, Trevor Power, an Australian Treasury Assistant Secretary said the framework will be structured to easily classify tokens based on their “function” and “purpose.” “The token mapping paper spends a lot of time talking about the token, the system, the value delivered for the very purpose of trying to structure whatever regulation such that it draws on those principles so then a token can be placed within that,” Power said, adding: “It's trying to be tech agnostic. It's not trying to be token specific.” Power said “it’s fair to assume” crypto-specific legislation will appear someti...

Terraform and Do Kwon lawyers used a U.S. House hearing, Binance.US complaint and Hinman emails documents to dismiss the SEC lawsuit. The lawyers representing the United States Securities and Exchange Commission (SEC) have contended that the additional documents submitted by Dentons, the legal counsel for Terraform and Do Kwon, in support of their motion to dismiss the lawsuit , lack adequate support for dismiss ing the case. The SEC’s counsel asserts that the Binance.US transcript and internal SEC emails, presented by the defense, hold no relevance to the current case. They argue that the Howey Test clearly defines the parameters of an "investment contract" and contend that UST should be classified as a security. In a court hearing on June 15, Dentons submitted supplementary documents to bolster their motion to dismiss the lawsuit filed by the U.S. SEC. The focus of the hearing was to determine if the digital assets developed by Terraform Labs should be classified as secu...

Last week, the US Court of Appeals for the Third Circuit ordered the US Securities and Exchange Commission (SEC) to respond to Coinbase’s request for clarifying the rulemaking .  According to documents shared by the exchange’s chief legal officer (CLO) Paul Grewal, the regulator has denied to “commit to any deadline despite the Court’s explicit order.” The SEC says in the letter that Coinbase’s petition might receive a recommendation within 120 days. Moreover, the SEC set the deadline to update the court on Oct. 11, 2023, according to Grewal’s tweet. In addition, the regulator asked the court to “take no action” before the time limit is reached. 4/5 pic.twitter.com/7obUPvATqK — paulgrewal.eth (@iampaulgrewal) June 13, 2023 Grewal added that the SEC disregards “the clear statements of the Chair that confirm they have no intent to issue new rules.” You might also like: Ava Labs CEO to testify before US House “Coinbase’s request for periodic reports is s...

Ether can simultaneously be a security and commodity under the regulatory scope of the SEC and CFTC, former CFTC commissioner Dan Berkovitz claimed. Ethereum’s native Ether (ETH) token may be both a commodity and a security, the former commissioner of the United States Commodities Futures Trading Commission has claimed. Speaking on a May 23 episode of Laura Shin’s Unchained podcast, Dan Berkovitz, who is also the former general counsel at the Securities and Exchange Commission, said that it’s legally possible for ETH to fall under the jurisdiction of both regulatory agencies. Laura Shin, Dan Berkovitz and Colin Lloyd speaking on the Unchained podcast. Source: YouTube The ongoing confusion over Ether’s legal status stems in large part from conflicting statements from the CFTC and the SEC. Over the course of the last six months, the CFTC has repeatedly called Ether, along with a number of other cryptocurrencies, a commodity. Meanwhile, the Gary Gensler-led SEC hasn’t explicitly provide...

The majority of assets in the crypto market are moving sideways at the moment, with Bitcoin [BTC] revisiting the $26K range. Nonetheless, the king coin managed a modest rebound. Amidst this period of consolidation, there was one specific crypto currency that stood out by capturing all the gains. XRP, the sixth largest digital asset, emerged as the winner in today’s market. At press time, XRP was trading for $0.4583 following an 8.02% daily rise. Earlier today the asset surged to $0.4596 marking its weekly high. Source – XRP/USDT Chart on TradingView The asset’s upswing is evident in its one-hour price chart. In addition to this, the Relative Strength Index [RSI] indicator highlighted how there was increased buying pressure in the market. XRP is currently being overbought. But what instigated XRP’s uptrend? The U.S. Securities and Exchange Commission [SEC] and its case against Ripple has been going on for several years now. Just as the community bets on its conclusion, a delay is...

The first subpoena was given to Marathon in the third quarter of 2021, concerning whether it may have violated federal securities laws relating to its data center in Hardin. Bitcoin (BTC) miner Marathon Digital has disclosed that it received another subpoena from the United States Securities and Exchange Commission (SEC) relating to its 100-megawatt data center in Hardin, Montana. According to Marathon’s quarterly report filed May 10, it received the subpoena on April 10 “relating to, among other things, transactions with related parties” that occurred while it was creating the facility in Montana, adding: “We understand that the SEC may be investigating whether or not there may have been any violations of the federal securities law. We are cooperating with the SEC” The subpoena is the second one received by Marathon regarding the facility, as it also received one late in the third quarter of 2021 in which the SEC ordered the firm to produce a number of related documents and commun...

The market cap of USDC, a stablecoin issued by Circle, has reduced nearly by half over the past six months following a regulatory crackdown and banking crisis. Circle CEO Jeremy Allaire says that a cryptocurrency crackdown by the United States regulators has been a major factor behind the declining market capitalization of its stablecoin, USD Coin (USDC). Circle chief’s comments on the U.S. crackdown come amid heavy regulatory scrutiny following the collapse of the FTX exchange, a banking crisis and USDC’s momentary depegging. During an interview with Bloomberg TV, Allaire noted that there is a “huge amount of concern globally about the U.S. banking system,” and the “regulatory environment in the U.S..” USDC depegged in March, a direct result of the U.S. banking crisis. Circle’s $3.3 billion worth of USDC reserves was stuck with Silicon Valley Bank, which was one of the three crypto-friendly banks shut down by regulators. At the time, Circle had assured its customers that it had the b...

Regulators in the US have undoubtedly been taking measures to protect cryptocurrency investors. Nonetheless, community members have raised quite a few red flags of late. When the Department of Justice initially revealed that it was going to “announce a major, international cryptocurrency enforcement action,” there were speculations, that something “huge” will be announced. However, that was not the case. The government taking action against lesser-known crypto exchange Bitzlato made community members furious. In fact, a few outrightly questioned if the latest action was meant to distract people from the fact that they did not suspect anything about FTX . Read More: Bitcoin, ‘Bitzlato’ and the DOJ: What Just Happened? Grayscale CEO slams SEC’s 1-D approach Leaving aside the community, even stalwarts from the space started voicing out their opinions regarding the same. In a letter to the WSJ, Grayscale executive Michael Sonnenshein sl...