Two individuals sued by the SEC for allegedly running a fake crypto mining scheme are seeking the suit’s dismissal, arguing the regulator has no authority over crypto.
US risks losing the crypto race to UAE, Korea, Aus and Switzerland: Ark
The U.S. crypto ecosystem is facing a “void” of well-established and credible institutions, according to an analyst from Ark Invest.
US risks losing the crypto race to UAE, Korea, Aus and Switzerland: Ark
The U.S. crypto ecosystem is facing a “void” of well-established and credible institutions, according to an analyst from Ark Invest.
Bitcoin In Trouble: Market Guru Predicts Price Dip Below $20,000
Bitcoin (BTC) has been struggling to regain its momentum as its price remains stuck below the $27,000 mark. This prolonged period of stagnation has prompted Michael J. Kramer, a renowned market strategist, to voice his apprehensions about an impending market breakdown for Bitcoin.
Taking to Twitter, Kramer shared his concerns, highlighting the potential risks and uncertainties surrounding the cryptocurrency’s price trajectory.
As the cryptocurrency’s value remains inert, it is crucial to examine the factors contributing to this situation and delve into its implications for investors and the broader crypto landscape.
Bitcoin Price: Concerns Arise Over Potential Slide Below $20K
As the cryptocurrency market faces another bout of turbulence, Bitcoin’s price has faltered, with the current value pegged at $26,863, according to CoinGecko. The crypto has lost 2.1% of its value in the last seven days.
In his analysis, Kramer not only highlights the potential for Bitcoin to reach the critical psychological level of $20,000 but also draws attention to the implications such a downturn may have on the broader stock market.
Bitcoin serves as a barometer for other risk assets, providing valuable insights into market sentiment. Should Bitcoin experience a substantial slide below the $20,000 threshold, it could signal increased risk aversion among investors, potentially dampening confidence in the stock market and other asset classes.
Regulatory Uncertainty Casts Dark Clouds For Bitcoin
Just as analysts eagerly anticipated a potential breakout in Bitcoin’s price, the cryptocurrency market took an unexpected turn, descending into a period of decline fueled by heightened regulatory uncertainty.
Despite initial optimism, the prevailing macroeconomic climate and regulatory challenges have conspired to dampen the prospects of a significant price surge in the near term.
Analysts had speculated that Bitcoin could experience an influx of investment if the United States were to default on its debt obligations. However, this potential scenario carries substantial risk, as there is a real possibility that the US Treasury may face a shortage of funds. The implications of such a liquidity crunch could be felt across the crypto space, impacting the overall demand and sentiment for digital assets.
Volatility Expected To Persist
Adding to the market’s woes, Democrats in the United States legislature have taken steps to solidify the Securities and Exchange Commission’s (SEC) authority over cryptocurrencies. This move has raised concerns that a significant number of tokens may be classified as securities, potentially subjecting them to stricter regulations.
The prospect of increased regulatory scrutiny looms over the crypto market, injecting an element of uncertainty and caution among investors and industry participants.
In light of these developments, the volatility that has long characterized the crypto market is likely to persist.
-Featured image from Pixabay
SEC Junks Grayscale’s Filecoin Trust Application Over ‘Security’ Label
Filecoin, a decentralized storage platform based on blockchain technology, has recently found itself entangled in a regulatory debate as the United States Securities and Exchange Commission (SEC) raises concerns over its classification as a security.
Grayscale Investments, a prominent digital asset management firm, has been instructed by the SEC to withdraw its application for a Filecoin Trust, citing potential securities implications.
Grayscale’s intent to launch an updated Filecoin Trust product was initially disclosed through a Form 10 application submitted to the SEC on April 14. However, in a recent announcement, Grayscale revealed that the regulatory body has expressed reservations about Filecoin’s categorization, asserting that it could fall under the definition of a security.
Grayscale Pushes Back Against SEC Filecoin Securities Claim
Grayscale has revealed that it received a comment letter from the SEC on May 16. In the letter, the regulatory body cautioned that Filecoin (FIL), the underlying asset of Grayscale’s proposed Filecoin Trust, meets the criteria for being classified as a security under federal law. As a result, the SEC requested that Grayscale withdraw its application for the trust product.
The intended transformation of Grayscale’s existing Filecoin Trust into a more public company-like entity, as outlined in the Form 10 application, would have entailed the filing of quarterly reports detailing the financial activities of the trust. However, the SEC’s recent warning has cast doubt on the regulatory viability of such a structure.
In response to the SEC’s assertion, Grayscale expressed a differing viewpoint. According to the firm, Filecoin should not be classified as a security under federal securities laws. Consequently, Grayscale intends to promptly submit a detailed explanation to the SEC staff, outlining the legal basis for its position.
SEC Definition Of Securities; Implications For Crypto Industry
The comment letter received by Grayscale Investments from the SEC sheds light on the regulator’s perspective regarding the classification of Filecoin (FIL) as a security.
The SEC’s definition of securities is crucial in determining the regulatory framework and compliance requirements for various financial instruments.
Securities, as per federal law, encompass a broad range of tradable financial assets, including stocks, bonds, and investment contracts, which are typically subject to specific disclosure and registration regulations.
The implications of the SEC’s position extend beyond the specific case of Filecoin and Grayscale Investments. It remains to be seen how this particular case will play out and what implications it will have for the broader regulatory approach to cryptocurrencies and blockchain-based assets.
-Featured image from Depositphotos
Crypto Regulation In South Korea Under Scrutiny Following Gruesome Murder Case
Crypto regulation is gaining momentum in South Korea as lawmakers seek to impose stricter rules on digital assets in response to a shocking murder case linked to cryptocurrency.
In a tragic incident reported by Bloomberg, a Korean woman was kidnapped and subsequently killed in what appears to be a dispute arising from losses related to crypto.
The gravity of the crime, which reportedly took place late March, has placed the spotlight on the efforts of lawmakers to expedite the country’s inaugural standalone crypto bill, which may soon undergo a parliamentary vote, potentially as early as this month.
The incident has underscored the need for comprehensive regulatory measures to address the risks and challenges associated with the burgeoning crypto industry.
On Focus: Virtual Asset User Protection Bill
This event has prompted lawmakers to accelerate the passage of the nation’s inaugural standalone crypto bill, known as the Virtual Asset User Protection Bill, which consolidates 19 different crypto-related measures into a single comprehensive legislation.
A draft version of the bill, obtained by Bloomberg, reveals that it aims to establish precise legal definitions for virtual assets and introduce penalties for offenses such as insider trading and market manipulation.
Furthermore, the proposed legislation seeks to grant the Financial Services Commission in South Korea the authority to supervise cryptocurrency companies and oversee the custody of digital assets.
Different Regulatory Paths For Crypto, Securities Tokens
Under the new rules, cryptocurrencies like Bitcoin will be subject to the proposed regulations, while tokens categorized as securities by the government will continue to be governed by existing capital-markets laws.
By establishing clear guidelines for digital assets, South Korea aims to fortify the resilience of the crypto industry and protect investors from potential risks.
The bill’s provision for mandatory insurance coverage aims to provide a safety net for digital asset firms, shielding them from financial losses in the event of cyberattacks or breaches.
Additionally, the stricter rules on reserve funds and account keeping seek to ensure greater transparency and accountability within the cryptocurrency ecosystem.
The introduction of the Virtual Asset User Protection Bill comes at a crucial moment for South Korea as the nation grapples with growing apprehension surrounding the crypto industry.
Recent events, including the financial crimes committed by Do Kwon, co-founder and CEO of Singapore-based Terraform Labs, and the collapse of the Terra ecosystem, have heightened concerns and shed light on the urgent need for robust regulatory measures.
-Featured image from Showmetech
SEC chair Gensler claps back at Coinbase, says crypto rules already exist
Speaking at the Financial Markets Conference, the SEC chair asserted that the rules for crypto are already in place and that the crypto sector has been largely non-compliant.
SEC revises $22M punishment against LBRY, seeks $111K instead
The SEC originally wanted LBRY to pay millions of dollars in penalties, but now concedes the defunct firm can’t pay up that amount.
SEC serves $4M in fines to Coinme over ‘misleading’ UpToken ICO
The regulator nabbed the crypto ATM operator turned exchange for securities law violations over its sales and statements of a crypto token.
Congressman McHenry announces joint hearings to address market structure around digital assets
Patrick McHenry suggested that the hearings will look to add to the regulatory efforts being done on the bipartisan bill led by Senator Cynthia Lummis and Senator Kirsten Gillibrand.
SEC’s Gary Gensler takes another swipe at crypto in educational video
The SEC boss reiterated that “the law is clear” on cryptocurrencies being securities, while others highlighted the lack of regulatory clarity in the U.S.
UK may have crypto regulation within a year, says senior minister
The lawmaker said the regulation will need to be both “pragmatic” and “proportionate” to ensure economic growth is maximized.
Crypto Companies May Use a Supreme Court Doctrine to Push Back Against SEC: Lawyer
Crypto firms are using the major questions doctrine as a way to fend off regulators, Jason Gottlieb, a partner at Morrison Cohen LLP, said.
Internal documents reveal Australia’s potential timeline for crypto legislation: Report
Internal documents from the Australian Treasury Department have revealed crypto legislation in the country could be a year away at the very least.
Crypto lawyers flame Gensler over claims that all crypto are securities
Crypto lawyers weighed in on Gary Gensler’s crypto regulation claims saying the SEC has no legal standing to police the space.
Hong Kong’s crypto ambition gets subtle nod from Beijing: Report
While China has cracked down on cryptocurrencies in the mainland, it’s apparently taking a softer approach to Hong Kong’s crypto hub aspirations.
Custodia Bank CEO slams Washington’s ‘misguided crackdown’ on crypto
Caitlin Long revealed that she had warned government agencies of major “fraud” in the crypto space months before several firms went bankrupt.
Coinbase Exec: US Congress Needs to ‘Step Up’ Its Crypto Regulatory Efforts
Faryar Shirzad, chief policy officer at the exchange, said the exchange would “love to register” its two dormant broker deals, but the reality is no clear direction has been provided by lawmakers on Capitol Hill.
3 reasons why Binance’s BNB token risks sliding further by March
A slew of technical, fundamental and on-chain indicators hint at more pain for BNB’s price in February.
Stablecoins not the target in BUSD crackdown: Matrixport head of research
Crypto financial service Matrixport’s head of research believes regulators are not targeting all stablecoins with the regulatory crackdown on BUSD issuer Paxos.
