Crypto Whales Move Millions of XRP Tokens as Price Remains Under SEC Regulatory Pressure
XRP, the native cryptocurrency of Ripple Labs, experienced a slight increase in price on Wednesday despite facing regulatory pressure from the US Securities and Exchange Commission (SEC).
Grayscale Launches Funds Trust and Files for Three ETFs with SEC
Grayscale Investments, the leading digital currency fund manager, has announced the launch of the Grayscale Funds Trust and filed registration statements for three exchange-traded funds with the U.S. Securities and Exchange Commission. The trust is a Delaware statutory trust structure that aims to strengthen the company's global asset management capabilities. Grayscale Advisors, an SEC-registered investment advisor, will serve as the new trust's advisor. The newly launched funds include the Grayscale Ethereum Futures ETF, Grayscale Global Bitcoin Composite ETF, and Grayscale Privacy ETF. Grayscale CEO Michael Sonnenshein stated that the creation of the Grayscale Funds Trust reflects their commitment to scaling their business responsibly.
Crypto Community Criticizes Venture Capitalist for Calling XRP a Security
Venture capitalist Jason Calacanis received criticism from members of the crypto community after suggesting that XRP is a security. Calacanis stated that Ripple could have avoided legal issues with the Securities and Exchange Commission (SEC) if it had registered with the regulator. Ripple CEO Brad Garlinghouse responded by stating that the US lacks a framework for registering digital assets and criticized Calacanis for commenting on topics he lacks knowledge about. The crypto community also expressed their disagreement with Calacanis, citing the difficulty of registering a digital asset with the SEC due to regulatory uncertainty.
Grayscale Worried SEC May Prevent Use of Coinbase for Crypto Assets
Grayscale Investments, the company behind the Grayscale Bitcoin Trust and Grayscale Ethereum Trust, has expressed concerns that the SEC's proposed new rules around safeguarding custody of clients' crypto funds could prevent it from using Coinbase as the sole holder of its $5.4 billion of crypto assets. The proposed rule would make it illegal for centralized exchanges like Coinbase to hold customer funds in commingled accounts and credit customers for their value, rather than providing an individual wallet for each customer. Grayscale currently stores its funds with Coinbase via the Coinbase Custody Trust Company, which holds Grayscale's assets in offline cold storage, via unique onchain addresses, and are never commingled with other clients' funds. Coinbase has also complained about the proposed rule, which would ban registered investment advisers from trading on non-qualified custodian crypto exchanges.
Crypto Lawyer Blasts SEC's "Far-Fetched" Arguments in Ripple Lawsuit, as Ripple CEO Reveals $200 Million Legal Defense Cost
Ripple Labs CEO Brad Garlinghouse has announced that the company will spend approximately $200 million on legal fees to defend itself against the SEC's lawsuit. However, John Deaton, a lawyer and crypto enthusiast, has criticized the lawsuit, describing it as "far-fetched" and lacking in merit. Deaton argues that the SEC has exaggerated its case and has failed to provide any legal authority or precedent to support its definition of XRP as a security. Despite mixed reactions to the news of Ripple's legal expenses, Garlinghouse expressed gratitude to the community for their support during the lawsuit.
Top U.S. Regulator Says Europe's Landmark Crypto Regulation Could Serve as Model for U.S.
Hester Peirce, a commissioner at the Securities and Exchange Commission (SEC), has praised Europe's crypto regulation and suggested that it could serve as a model for the US. She specifically highlighted the speed at which the European Union put together its digital finance package, Markets in Crypto Assets (MiCA), which was passed by the European Parliament last month. Peirce also expressed her support for a regulatory model that allows for innovation while informing customers of the risks. She predicted that the rollout of MiCA could attract more businesses to Europe due to the clearer regulatory environment.
Coinbase Retains Algorand Trading Despite SEC Charges: CLO Paul Grewal Addresses Questions on Double Standards
Coinbase has faced questions over its decision to retain trading activities for Algorand (Algo) despite the US SEC characterizing it as a security. This is in contrast to the exchange's decision to delist XRP for the same reason. In a recent interview, Coinbase's Chief Legal Officer, Paul Grewal, acknowledged the frustration of XRP holders and emphasized the need for teamwork in navigating the evolving legal landscape. Grewal also suggested that there may be a political force behind the recent SEC enforcement actions. Despite Grewal's comments, some XRP proponents remain unsatisfied with Coinbase's response.
Crypto Lawyer Asks SEC Chairman to Stop Protecting American Public Amid Regulatory Actions Against Crypto Firms
Crypto lawyer John Deaton has called on SEC chairman Gary Gensler to stop protecting the American public in light of recent regulatory actions against crypto firms. Deaton's comments come after the SEC filed a lawsuit against Ripple Labs, Inc. in December 2020, alleging that the company had conducted an unregistered security offering by selling XRP.
SEC Blasted on Custody Proposal by JPMorgan, Crypto Firms And a Fellow Agency
The U.S. Securities and Exchange Commission's (SEC) proposed rule requiring investment firms to safeguard all client assets, including cryptocurrency, with approved custodians has faced criticism from various industries. JPMorgan and the Small Business Administration have objected to the expanded requirement, arguing that it could threaten smaller investment advisers.
Coinbase Chief Legal Officer Pushes Back Against SEC's Proposed Custody Rule Changes
Coinbase's Chief Legal Officer, Paul Grewal, has voiced his opposition to the U.S. Securities and Exchange Commission's (SEC) proposed revisions to federal custody requirements. The proposed rule would require registered investment advisers (RIAs) to hold client assets at qualified custodians. Coinbase has submitted its comments regarding the proposed rule, disagreeing with the SEC's proposition to shift the types of banks allowed to serve as qualified custodians. Coinbase also believes the proposal requirement by the SEC for RIAs to maintain possession or control of client assets at all times is unjustified.
