Terraform Labs and its partners ask court to dismiss SEC charges
Terraform Labs and its co-founder Do Kwon have submitted a motion for summary judgment to a judge in the Southern District of New York, asking the judge to dismiss the SEC's allegations of involvement in a multi-billion dollar securities fraud. The company stated that after two years of investigation, collecting over 20 pieces of evidence, exchanging over 2 million pages of documents and data, the SEC has not proven that the defendants did anything wrong. Terraform is asking the judge to rule that the SEC has not sufficiently proven its case to justify a trial.
U.S. SEC officials urge SEC to establish regulatory framework for cryptocurrency sector
Hester Peirce of the US Securities and Exchange Commission (SEC) has expressed opposition to the regulatory agency's actions towards the cryptocurrency industry. Peirce criticized the SEC's enforcement action against LBRY blockchain company, calling the decision to sue LBRY "puzzling" because the complaint did not include allegations of fraud, and there was no evidence presented during the case to suggest that the blockchain company engaged in fraudulent behavior. Peirce also stated that there is no clear agreement for blockchain companies like LBRY to register their token products with the SEC, as the applicability of securities laws to cryptocurrency projects is still unclear. If a company is able to register its token issuance, Peirce describes this action as "not particularly useful effort."
Peirce suggested that the SEC could redeploy its resources to develop a clear regulatory framework applicable to cryptocurrency projects like LBRY instead of suing LBRY.
SEC Commissioner Hester Peirce slams SEC enforcement action against LBRY
Hester Peirce, a commissioner of the US Securities and Exchange Commission (SEC), issued a statement stating that the SEC has taken many disturbing cryptocurrency enforcement actions, but the LBRY, Inc. case is particularly disturbing and disappointing. Peirce stated that although the agency claims that the application of securities law to token projects is clear, this is not the case. She said that companies like LBRY have no way to enter and register their functional token products. Even if a company does successfully register its token issuance, this does not completely prevent SEC enforcement actions. Peirce added that compliance is important for investors.
On October 19, LBRY announced that it will shut down after the SEC charged the startup with selling unregistered securities.
SEC Chair Gary Gensler Reveals $5B in Enforcement Actions, Calls for Crypto Regulation
Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), discussed the agency's enforcement efforts during a recent speech. He highlighted that the SEC initiated over 780 enforcement actions in 2023, resulting in judgments and orders amounting to $5 billion. Gensler also reiterated his previous stance on cryptocurrencies, stating that a substantial portion of the crypto market should be classified as securities and subject to the same regulatory framework. However, his remarks on the cryptocurrency market have stirred discussion within the crypto community, with some urging him to provide clearer and more comprehensive guidance on cryptocurrency regulations.
SEC Chairman: The SEC has 8-10 filings before the SEC regarding the possible launch of Bitcoin exchange-traded products
Jay Clayton, Chairman of the U.S. Securities and Exchange Commission, said that there are 8-10 applications before the SEC regarding the possible launch of Bitcoin exchange-traded products.
JP Morgan: SEC rejection of Bitcoin spot ETF could lead to lawsuits
JPMorgan stated that if the US Securities and Exchange Commission (SEC) rejects the application for a bitcoin exchange-traded fund (ETF), it may face legal action from the applicant. JPMorgan analyst Nikolaos Panigirtzoglou wrote that any rejection could potentially lead to lawsuits against the SEC, causing more legal trouble for the agency. Although the likelihood of such a rejection is low, it is still possible. We believe that the SEC would not want to face another legal battle over the approval of a bitcoin ETF.
Last week, JPMorgan stated that it expects multiple bitcoin ETFs to be approved within "a few months." Today, it stated that asset management companies appear to be making progress with the SEC in terms of technical preparation and document modifications to clarify issues such as market manipulation and commingling of client funds.
Gary Gensler: 2009 custody rules already apply to many funds and crypto securities
Odaily Planet Daily News Fox reporter Eleanor Terrett wrote on X platform that SEC Chairman Gary Gensler said in an interview regarding crypto compliance, "There is no doubt that today, the 2009 custody rule applies to many funds and crypto securities. Now, if you operate as an exchange, then the definition of an exchange applies to this rule."
SEC Chairman Says Agency Will Not Relax Its Enforcement Strategy
Gary Gensler, the chairman of the US SEC, stated in his speech at the Washington Securities Law Forum on Wednesday that the SEC continues to actively take enforcement actions against fraudsters, financial companies, and cryptocurrency companies. As of September 30, the enforcement statistics show that the SEC has handled judgments and orders worth $5 billion and 780 actions. Last year, the SEC filed 760 cases and imposed a record $6.4 billion in fines. However, Gensler stated that these numbers "only tell part of the story". He emphasized in his speech that even if the SEC faces "enforcement regulation" and questions about its increased caseload, the agency will not relax its enforcement strategy and is willing to resort to the courts to complete its actions.
SEC Chairman: There is a widespread problem of non-compliance with US regulations in the encryption industry, and the industry is not that decentralized
SEC Chairman Gensler gave a speech, stating that the cryptocurrency industry generally has problems with not complying with US regulations and is not as decentralized as it seems.
SEC Chair Gensler Stands Firm on View that Many Cryptocurrencies are Subject to Securities Laws
Gary Gensler, the Chair of the Securities and Exchange Commission, has reiterated his belief that many cryptocurrencies fall under existing securities laws, despite resistance from the industry. Speaking at the 2023 Securities Enforcement Forum, Gensler emphasized that crypto firms are subject to the same regulations as traditional finance. He also commented on the ongoing speculation surrounding pending applications for spot bitcoin ETFs, which the regulator has yet to approve. The SEC has brought several cases against crypto firms over the past year, often citing the Howey Test to determine whether transactions are investment contracts and therefore subject to securities laws.
