U.S. congressmen propose an amendment calling for lowering SEC chairman salary to $1 and cutting SEC funding for crypto enforcement
Fox journalist Eleanor Terrett posted on X platform that the Financial Services and General Government (FSGG) bill released by the US House Appropriations Committee will be voted on by the Rules Committee at 4 pm Eastern Time and then submitted to the House of Representatives. This includes an amendment by Tennessee Congressman Rep Tim Burchett to reduce SEC Chairman Gary Gensler's salary to $1. It also includes an amendment to cut funding for the US Securities and Exchange Commission in cryptocurrency enforcement.
US SEC Struggles to Fill Crypto Specialist Vacancies Amid Negative Public Perception
The US SEC has struggled to fill vacant Crypto Assets Specialist positions, with several crypto experts declining offers to work with the regulator. As of September 30, 2023, 491 out of 5,303 authorized positions in the SEC's office remained unfilled, including positions in the Division of Examination, Trading and Markets, and Enforcement. The SEC has cited a small pool of qualified experts and competition with the private sector as challenges in filling these positions, and the agency's prohibition on staff holding crypto assets has also been a hindrance. Filling these vacancies is a priority for the SEC in the next fiscal year to address gaps in the regulation of crypto activities in the US.
The U.S. SEC filed a motion for summary judgment, saying it had "indisputable" criminal evidence of Do Kwon
US Securities and Exchange Commission (SEC) has advanced the Terra lawsuit process by submitting a motion for summary judgment. The SEC claims to have "undisputed" evidence of Terraform Labs' former CEO Do Kwon and the company's alleged misconduct. The SEC's filing alleges that Terraform and Do Kwon orchestrated a fraudulent scheme that ultimately resulted in $45 billion in losses, including devastating losses to US investors.
The SEC's motion for summary judgment further states that the defendants fabricated Terra blockchain activity to create the appearance of non-existent real-world transactions on the blockchain. They lied to investors about the stability of Terraform's so-called stablecoin while concealing secret transactions with third parties to save the asset from collapsing.
Previously, Terraform Labs and Do Kwon's lawyers submitted a motion for summary judgment in an attempt to quickly dismiss the case.
SEC Asks Court for Summary Judgement Against Do Kwon, Terraform
The request follows a move by Kwon's defense team to do the same.
Lawyer: NYSE Arca expected to file 19b-4 on GBTC conversion
Grayscale won a lawsuit against the SEC in August, and the Washington DC Circuit Court of Appeals made an official ruling last week. Last month, the company submitted an application to the SEC to register GBTC stocks on the S-3 form under the 1933 Securities Act. The SEC needs to sign this form and the 19b-4 document submitted by NYSE Arca on behalf of Grayscale in order to continue the conversion. Jay Gould, special advisor to Baker Botts law firm, expects NYSE Arca to resubmit the 19b-4 on behalf of Grayscale, as this may be the fastest and most effective solution. If the SEC rejects the request again, Grayscale may find it necessary to "return to court."
SafeMoon says construction will continue after SEC lawsuit
Decentralized finance (DeFi) protocol SafeMoon has responded to the recent lawsuit by the US Securities and Exchange Commission (SEC) and expressed its intention to seek a solution. The project posted on X platform that they are reviewing the recent news and take these issues very seriously. They will do their best to resolve the problem as soon as they receive more information. Meanwhile, their team continues to build, focus on providing services to users, building their vision, and advancing their mission. Jinse Finance reported that SEC accused SafeMoon executives of fraud and offering unregistered securities.
SEC Requests Documents Related to PayPal's Stablecoin Amid Regulatory Actions
PayPal has confirmed that the SEC has requested documents related to its PYUSD stablecoin, which is co-managed by Paxos. This move marks the latest regulatory action taken by the SEC against the crypto industry, following its lawsuit against the Binance-brand BUSD stablecoin. The PYUSD stablecoin was launched by PayPal during the "crypto winter" and is used for on- and off-platform transactions. Some observers have criticized the SEC for "picking winners" in the crypto industry, as the Howey Test's vagueness could potentially classify anything that leads to profit as a securities offering.
Ripple legal director: SEC action 'deviates from commitment to upholding the law'
On November 2nd, Stuart Alderoty, Ripple's Chief Legal Officer, expressed reservations about the series of legal failures that the SEC suffered during Gary Gensler's tenure. Stuart stated that "another court found the SEC to be arbitrary and capricious once again" and expressed concern about the SEC's repeated arbitrary and capricious actions in court cases.
Previously, in July 2023, the SEC lost a lawsuit against Ripple over XRP in the Fifth Circuit Court of Appeals.
New York judge urges SEC to quickly review Celsius restructuring plan
On November 1, New York judge Martin Glenn urged the US Securities and Exchange Commission (SEC) to decide quickly whether to authorize the transformation plan of cryptocurrency lending company Celsius Network LLC, which is undergoing bankruptcy proceedings. Judge Glenn said he will make a ruling on Celsius' proposal as soon as possible. However, even if he approves Celsius' transformation plan, the company and its creditors still need SEC approval. If Celsius' exit from Chapter 11 fails, the company may be liquidated.
U.S. congressional watchdog says SEC needs to get approval from lawmakers before proceeding with controversial announcement
According to the US Government Accountability Office (GAO), guidance from the Securities and Exchange Commission (SEC) on how companies should account for holding cryptocurrency must be publicly disclosed before it can take effect in Congress. Staff Accounting Bulletin No. 121 from the SEC, released in March 2022, requires companies holding cryptocurrency to record their customers' holdings as liabilities on their balance sheets. This bulletin is subject to the Congressional Review Act (CRA), which requires agencies to submit a report to Congress about the rule before it takes effect, according to the congressional watchdog on Tuesday. The CRA, enacted in 1996, aims to strengthen congressional oversight of agency rule-making. GAO said on Tuesday that "we conclude that the bulletin is a rule for purposes of the CRA because it meets the definition of a rule under the APA [Administrative Procedure Act], without exception applicable. Therefore, the bulletin must be submitted to Congress." SEC said the bulletin is not subject to the CRA because it did not meet the definition of a rule, according to GAO.
