BlackRock was fined $2.5 million by the SEC for incorrect disclosure of investment information in the entertainment industry
SEC has fined BlackRock $2.5 million for inaccurate descriptions of its investment in the entertainment industry in a publicly traded fund it manages. The SEC stated that from 2015 to 2019, the BlackRock Multi-Sector Income Trust (BIT) made significant investments in a printing and advertising company called Aviron Group, which produces one to two films per year through a loan facility.
The SEC stated that BlackRock incorrectly described Aviron as a company providing "diversified financial services" in BIT's annual and semi-annual reports, and also misrepresented Aviron's interest rates. However, BlackRock discovered these errors in 2019 and subsequently corrected the investment information on Aviron in the following years.
The SEC emphasized that investment advisers have a responsibility to provide accurate key information, and BlackRock failed to fulfill this responsibility in its investment in Aviron. BlackRock agreed to pay a $2.5 million fine to resolve this improper investment disclosure issue.
Coinbase files response brief to SEC charges, says SEC charges exceed jurisdiction
Coinbase submitted a reply brief to the US Securities and Exchange Commission (SEC) in June accusing it of not registering as a securities exchange, broker, and clearing agency. Coinbase stated that the SEC's allegations exceeded its jurisdiction.
U.S. SEC accuses BlackRock of failing to properly disclose investment information, BlackRock agrees to pay fine
The US Securities and Exchange Commission (SEC) has accused BlackRock of failing to accurately describe and disclose its investment in entertainment company Aviron Group. Multiple departments within BlackRock's income trust funds (BIT) made significant investments in Aviron Group through lending institutions. BlackRock incorrectly described Aviron as a "diversified financial services" company, and this investment accounted for a large portion of its publicly traded funds. To settle the charges, BlackRock agreed to pay a $2.5 million fine.
Coinbase seeks dismissal of SEC lawsuit over unregistered securities exchanges
Coinbase is attempting to have the lawsuit filed against it by the SEC dismissed. The SEC had accused Coinbase of operating unregistered securities exchanges by facilitating the trading of digital tokens. Coinbase argued that the tokens traded on its platform are not securities and therefore fall outside the SEC’s jurisdiction. The company also argued that the SEC was overreaching its authority and trying to regulate all commerce that involves investment. A federal judge will now decide whether to accept Coinbase’s motion and dismiss the SEC’s lawsuit.
The court made a final ruling on the case of Grayscale v. SEC, returning the approval power of Bitcoin ETF to the SEC
FOX Business journalist Eleanor Terrett posted on social media that the District of Columbia Appeals Court has officially made a final ruling on the Grayscale vs. SEC case. There is no new content, only a formal authorization statement.
Grayscale has obtained a court order on the issue of Bitcoin ETF with the US SEC. The court ruling returns the approval authority of Bitcoin ETF to the US SEC, and the US SEC has been instructed to take the next step in dealing with the Grayscale Bitcoin ETF plan.
Coinbase will file final lawsuit against SEC on Tuesday over its unregistered securities case
On October 23, Coinbase will file a final lawsuit on Tuesday regarding its unregistered securities dispute, as reported by CoinDesk. An insider said that the company will strengthen its familiar argument: the SEC has not proven that these transactions are investment contracts because it has not proven the existence of any actual contracts, and the SEC violates the "significant issues principle", that is, federal agencies have no right to regulate new areas waiting for Congress to take action.
After Coinbase submits the deadline on Tuesday, US District Court Judge Katherine Polk Failla in southern New York will hear both sides' full arguments. Although it is usually unlikely to reject government enforcement actions at this stage, the judge has the right to dismiss the case.
Lawyer: SEC’s chance of winning in appeal against Ripple is 3%-14%
On October 23rd, lawyer Bill Morgan posted on X platform stating that the chances of the US SEC winning the appeal against Ripple are very slim.
Morgan believes that apart from the advantage of "Ripple not meeting Howey test in at least two aspects in ODL sales", there are no clear appealable errors. He also added that the possibility of the SEC successfully appealing against Ripple is very slim, about 3%.
Morgan's prediction is based on another statistical data shared by famous lawyer Jeremy Hogan, who shared government data on the success rate of appeals in different types of lawsuits. The data shows that the SEC has a 14.2% chance of winning the appeal against Ripple.
Previously, Ripple announced that the US Securities and Exchange Commission (SEC) has dropped all charges against its CEO Brad Garlinghouse and Executive Chairman Chris Larsen. Ripple has had two successful cases before, including a court ruling in July 2023 that declared "XRP itself is not a security", and a federal judge's decision in October to reject the SEC's appeal request.
Crypto-friendly Republican Rep. Tom Emmer plans to run for U.S. House Speaker
Cryptocurrency-friendly Republican Congressman Tom Emmer plans to run for Speaker of the US House of Representatives. The current interim Speaker McHenry does not have the power to push legislation through the House, which has resulted in the stagnation of various bills including those related to cryptocurrency. This highlights the importance of electing a new Speaker. Emmer has shown support for digital assets on numerous occasions and opposes the SEC and its chairman Gary Gensler's regulatory approach.
US Chamber of Digital Commerce Backs Binance in Fight Against SEC's Crypto Regulations
The US Chamber of Digital Commerce has filed an amicus brief in support of Binance in its legal battle against the US Securities and Exchange Commission (SEC). The group argues that the SEC's actions are driving crypto startups offshore and stifling financial innovation. They also claim that the SEC has mislabelled many crypto tokens as unregistered securities and failed to recognise the distinction between the subject of an investment-contract security and the investment contract itself. The SEC has recently levied enforcement actions against several digital asset companies, including Binance, Coinbase, and Kraken.
Fox Reporter: Regarding other parts of the Ripple case, SEC Chairman will not "give up without a fight"
Eleanor Terrett, a journalist from Fox News, stated on X platform that sources close to the SEC revealed that although the lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen has been dismissed, all other parts of the case, including all quotations and sales categories of XRP as an investment plan, are still pending resolution. SEC Chairman Gary Gensler does not seem to be willing to "surrender without a fight."
