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Tag: SEC

The Year in Cryptocurrency — 2021 Popular Reads on JD Supra | Beacon Insights by JD Supra

The SEC’s action against Ripple, NFTs, Dogecoin, smart contracts, and more … here’s a quick look at some of the most well-read posts covering cryptocurrency matters, all aspects, on JD Supra during 2021:

Ripple Responds to the SEC’s Enforcement Action – by Matt Stankiewicz at the Volkov Law Group
SEC vs. Ripple Could Make Waves in Cryptocurrency Market – by Alon Kapen at Farrell Fritz
Ripple Effect: SEC Lawsuit against Cryptocurrency Company May Provide Guidance For Crypto Industry – by Nikhil Mehta at SmithAmundsen
SEC Complaint Against Ripple (XRP) And Possible Regulatory…

Cryptocurrency outlook may depend on which agency is supervising

The agencies traditionally work out who has jurisdiction in a collaborative way, said Jill Sommers, a former CFTC commissioner, in an email. Sommers is a senior adviser at Patomak Global Partners. Gray area “Just like with any other financial products, there are products that are clearly defined as derivatives and products that are clearly defined as securities,” Sommers said. “Then there are some that are in this gray area, and traditionally the agencies work out who has jurisdiction.”The CFTC went in a direction that the SEC hasn’t caught up with, Alan Konevsky, chief legal…

Grayscale Finds Rising Interest in Bitcoin as it Pushes for Spot BTC ETF

Source: iStock/pichet_w The US-based major cryptoasset management firm Grayscale turned to a survey to show the rising interest in bitcoin (BTC) among investors as the company is working hard to convince the US Securities and Exchange Commission (SEC) to launch the first bitcoin spot-based exchange-traded fund (ETF) in the US.Today, Grayscale published the results of an online survey of 1,000 US consumers, who were involved in some form of personal investing, in August this year. “It is becoming increasingly difficult for…

US SEC Charges Man With Defrauding Crypto Investors in Two Digital Asset Securities Offerings –…

The U.S. Securities and Exchange Commission (SEC) has charged a citizen of Latvia with defrauding investors in two crypto offerings. The fraudster “used fake names, fictitious entities, and fraudulent profiles to perpetrate his schemes, and misappropriated nearly all of the investor funds that were raised.”
Two Fraudulent Crypto Schemes
The SEC announced Thursday that it has “charged a Latvian citizen with defrauding hundreds of retail investors out of at least $7 million through two separate fraudulent digital asset securities offerings.”
Noting that Ivars Auzins defrauded U.S….

Cryptocurrency regulatory clarity needed, 2 in GOP tell SEC

Key Republicans in Washington are calling on the Securities and Exchange Commission to provide additional guidance on how cryptocurrencies are regulated.
“For investors to benefit from a fair and competitive marketplace, federal agencies should answer questions about whether — and if so, how — new and emerging technologies fit under existing regulations,” said Sen. Pat Toomey, R-Pa. in a statement Friday. Mr. Toomey said SEC Chairman Gary Gensler’s “failure to provide clear rules of the road for cryptocurrencies underscores the need for Congress to act.”
Following a Senate Banking…

University Part of Artificial Intelligence, Data Science Consortium

The university is part of a new Southeastern Conference Artificial Intelligence Consortium, which is focused on ensuring that students graduate with the AI and data science knowledge to compete in an increasingly high-tech workplace. Adobe Stock image
BIRMINGHAM, Ala. – The provosts of the Southeastern Conference‘s 14 member universities have agreed to a broad collaboration centered around artificial intelligence and data science for workforce development.
Believed to be the first athletics conference collaboration to focus on artificial intelligence for workforce development, the SEC…

Grayscale argues the SEC’s bitcoin ETF treatment could violate the APA

In the wake of the Securities and Exchange Commission’s most recent bitcoin exchange-traded fund (ETF) rejection, Grayscale is pushing back on the regulator’s arguments.
Grayscale is seeking to convert its bitcoin trust, GBTC, to an ETF, and recently put the Securities and Exchange Commission on the clock in October, when NYSE Arca filed to list the product. A decision could come as early as Dec. 24, although the agency has a history of extensions. It’s already published a notice on Nov.2 seeking comments on the proposed rule change. 
The SEC took a similar approach to VanEck’s offering,…

Morgan Stanley Deepens Crypto Exposure Through Grayscale Bitcoin Trust

Leading investment bank Morgan Stanley has once again deepened its crypto bet through Grayscale Bitcoin Trust. The megabank had been invested in crypto through the trust for a while now across various funds. In a recent SEC filing, the bank revealed that it had dramatically increased its holdings in the trust over the summer. When it seemed like the broader market was panicking due to low prices, the wealth management firm had been filling up its bags.
In a tweet from MacroScope, it was pointed out that the megabank had not only deepened its bet but had widened…

Crypto Initiatives Launch; Bitcoin Upgrade Activated; Reports Address DeFi, Tether; SEC Rejects…

Raising Municipal Funds and Rewarding Loyalty: New Cryptocurrency Use Cases

By Lauren Bass

Earlier this week, a cryptocurrency nonprofit organization reportedly launched a Bitcoin-based digital asset designed to raise funds for New York City’s municipal government while simultaneously allowing individual stakeholders to earn rewards. According to reports, although NYC has yet to officially partner with the nonprofit, funds generated by the token will be stored in a secured wallet and can be claimed and used by the city at any time.

The NYC-related coin is the second in a series and…

Regulation Is Coming, These Blockchain Projects Are Ready

Over the last couple of years, blockchain technology and the DeFi applications that it supports have spread far and wide.From collateralized lending to yield farming, liquidity pools to fractional ownerships via NFTs (non-fungible tokens), the DeFi ecosystem offers way better returns than traditional finance (TradFi). The expansion of the DeFi sector has been so rapid that most governments and regulators worldwide found themselves unprepared.Until recently, financial regulators have primarily been trying to catch up to the evolving technology.Ever since the US SEC issued its investigative…

SEC Action on Enforcement Related to Decentralized Autonomous Orgs

Tuesday, November 23, 2021

Thoughts on Recent SEC statements and Action on Enforcement Related to Decentralized Autonomous Organizations (DAO)
On November 10, 2021  the US Securities and Exchange Commission (the SEC) announced that it had halted the first ever attempt to register digital tokens issued by a decentralized autonomous organization (DAO) under the US federal securities laws. American CryptoFed – also the first DAO to take advantage of Wyoming’s new “DAO Law” that attempts to give…

‘If you call XRP the banker coin, then Bitcoin’s the drug dealer coin’

The United States Securities and Exchange Commission’s lawsuit against Ripple Labs revealed several facets of the regulatory body’s approach towards cryptocurrencies. In fact, many believe the SEC allegedly favored top cryptocurrencies like Bitcoin and Ethereum over the rest of the market.
Matt Hamilton, Director of Developer Relations at Ripple, recently reiterated that narrative. In an interview, he claimed that “the SEC shouldn’t be picking and choosing favorites,” as its Director of Division of Corporate Finance William Hinman did in the past.
During the interview, the…

Ripple Makes ‘Good Progress’ in Legal Row With SEC, Says Brad Garlinghouse


Source: AdobeStock/Patrik UnterhauserUS blockchain company Ripple is making “good progress” in its efforts to resolve its legal conflict with the US Securities and Exchange Commission (SEC), hoping to end the row in 2022, according to the chief executive.Brad Garlinghouse, CEO of Ripple, said that the legal case, which is centered on the firm’s XRP token, is moving slowly forward, although towards a potentially favorable outcome.“We’re seeing pretty good progress despite a slow-moving judicial process,” the CEO told local broadcaster CNBC. “Clearly we’re seeing good…

Invesco Joins Bitwise in Blaming the SEC for Decision to Withdraw ETFs


Source: AdobeStock/JHVEPhotoThe American exchange-traded fund (ETF) issuer Invesco has for the first time revealed the reason for its surprise decision to pull out of the race to bring a bitcoin (BTC) futures-backed ETF to the market – and just like its competitor Bitwise Asset Management, the firm has blamed the rules from the US Securities and Exchange Commission (SEC).According to Invesco, the main problem is the SEC’s requirement that an ETF only holds bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME). Futures contracts must be rolled over each month as they…

XRP prices suppressed due to SEC lawsuit, strong fundamentals driving interest

Its been a hard year for Ripple, with the cryptocurrency and blockchain company facing legal action from the United States Securities and Exchange Commission along leading to many users and crypto companies in the country breaking their ties with the company. Despite these setbacks, Ripple seems to be more popular than ever, with its daily active addresses recently touching an all-time high.
The ledger has increased the volume of its daily active addresses from about 11.3 thousand daily to the recent peak high at 142.7 thousand, an over 11x increase in activity during this time.
Source:…

RippleX exec says ODL is ‘killer value proposition to Ripple Net’

Despite the ongoing SEC vs Ripple Labs lawsuit and the market experiencing a dip, Ripple has been making waves in crypto news. During an episode of the Thinking Crypto podcast, RippleX General Manager Monica Long spoke to host Tony Edward about Ripple’s recent performance, multi-chain development, and the XRP Ledger technology.
Water, water everywhere
Calling ODL the “killer value proposition to Ripple Net,” Long explained,
“So you know, ODL’s been in market for a few years now and Q3 was definitely, you know, the most outstanding…And the volume through ODL grew – so if you…

Those ‘hiding behind anonymity of crypto transactions’ will be accountable, SEC warns

Individuals who hide behind the anonymity of cryptocurrency transactions to defraud investors should expect that the SEC will trace their illegal activity and hold them accountable for their actions
The Securities and Exchange Commission (SEC) has charged a California-based promoter for alleged Bitcoin-related fraud, the regulator announced on 18 November, 2021. The promoter, Ryan Ginster has been held for,
“…conducting two unregistered and fraudulent securities offerings that raised over $3.6 million in cryptocurrency from retail investors.”

The complaint filed, charges the…

ConstitutionDAO Raises $27M on Eve of Sotheby’s Auction. $PEOPLE Could Be the Reason

However, the real-world identities of multiple members of the DAO’s brain trust – roughly three-dozen individuals – are known, and now an actual LLC will be placing the bid on behalf of the DAO to comply with Sotheby’s know-your-customer (KYC) requirements. Additionally, fractionalization could lead to an unusually easy-to-pursue securities enforcement action from the Securities and Exchange Commission (SEC), per early discussions in the DAO’s Discord.

SEC Commissioner To DeFi: Follow The Law Or Face Enforcement – Technology

In a recent article, SEC Commissioner Caroline A.
Crenshaw encouraged decentralized finance (DeFi) participants to
voluntarily comply with securities law regulations, in particular
those governing risk disclosure, warning that additional
enforcement actions are likely against those who fail to do
so.1

Background

The reach of decentralized finance (DeFi) and related
technologies has grown rapidly in the past several years. Broadly
speaking, DeFi seeks to offer financial services through
self-executing “smart” contracts and decentralized
transaction records—”blockchains”—that…

Crypto Payment Products Launch; SEC Addresses DeFi, Targets DAO Tokens; OFAC Adds Crypto Exchange to…

New Crypto Payment Products Launch, Report Cites Exchange Consolidation

By Kayley B. Sullivan

This week, a major U.S. financial services firm announced its partnership with three leading cryptocurrency service providers in the Asia Pacific region to launch cryptocurrency-funded payment cards. The cards will reportedly allow consumers and businesses in the Asia Pacific region to apply for crypto-linked credit, debit or prepaid cards that instantly convert their cryptocurrencies into traditional fiat currencies for use in online and point-of-sale payments.

In another recent…

SEC Commissioner to DeFi: Follow the Law or Face Enforcement | Manatt, Phelps & Phillips, LLP

In a recent article, SEC Commissioner Caroline A. Crenshaw encouraged decentralized finance (DeFi) participants to voluntarily comply with securities law regulations, in particular those governing risk disclosure, warning that additional enforcement actions are likely against those who fail to do so.1

Background

The reach of decentralized finance (DeFi) and related technologies has grown rapidly in the past several years. Broadly speaking, DeFi seeks to offer financial services through self-executing “smart” contracts and decentralized transaction records—“blockchains”—that…

Bulls Put On The ‘Spot’ As VanEck Bitcoin ETF Is Rejected

Bitcoin ETF season has come to an abrupt halt as the spot-based ETF proposal by VanEck has been rejected by the Securities and Exchange Commission. Here is a closer look into why the SEC rejected the proposal, what this means for future approvals, and what it could mean for the cryptocurrency’s continued bull run.
The SEC Denies VanEck Spot Bitcoin ETF Proposal
The United States Securities and Exchange Commission announced Friday that it had rejected a proposal for the VanEck Bitcoin ETF. The application was filed in March by the CBOE BZX Exchange, but the…

SEC Stops Wyoming-Based DAO From Registering 2 Digital Tokens

The Securities and Exchange Commission (SEC) stopped a Wyoming-based decentralized autonomous organization (DAO) from registering two digital tokens as securities, the agency said on Wednesday.In the announcement, the SEC’s Enforcement Division alleged that on Sept. 16, American CryptoFed “filed a materially deficient and misleading registration form known as a Form 10, which purported to register two digital tokens issued by the company – the ‘ducat’ and ‘locke’ tokens – as equity securities.”The SEC alleged that this form lacked mandated information about the tokens and…

SEC halts token registrations of Wyoming-based DAO

The Securities and Exchange Commission (SEC) is taking action against a Wyoming-based decentralized autonomous organization (DAO) and its planned tokens.
The securities regulator announced today it had instituted proceedings against American CryptoFed DAO LLC, which touts itself as the first DAO out of Wyoming, resulting in a freeze on the registration of its tokens. The state passed a heavily debated law earlier this year allowing DAOs to seek state charter and official recognition as limited liability companies. 
CryptoFed filed an S-1 with the SEC in September of this year, formally…