Stop Protecting American Public, Pro-XRP Attorney Tells SEC Chair
Crypto lawyer John Deaton is urging SEC Chair Gary Gensler to withdraw his regulatory actions against crypto companies, claiming that they harm the industry while failing to protect Americans. The SEC has been enforcing unclear regulatory measures against several crypto entities, including Ripple, Paxos, Bittrex, and Coinbase. Deaton argues that XRP is not a security but a digital currency, and the ongoing lawsuit against Ripple is pushing legal boundaries. The SEC maintains that its actions are necessary to protect investors and ensure compliance with securities laws.
PayPal Discloses $943 Million in Cryptocurrency Holdings increased by 56% in Q1 2023 to nearly $1B
PayPal, a financial technology company, has revealed its cryptocurrency holdings in a quarterly report filing to the Securities and Exchange Commission (SEC).
Over 2,300 US Banks Could Have More Liabilities Than Assets, Boosting Bitcoin Prices
Recent analysis reveals that over 2,300 US financial institutions could have more liabilities than assets, which could lead to a boost in Bitcoin prices if the government doesn't act carefully. Almost half of America's 4,800 banks are burning through their capital buffers, and there is still more tightening to come from the Fed. The turmoil in the banking industry could drive investors to turn to Bitcoin as a way to protect their assets, potentially driving Bitcoin prices even higher. Financial institutions are pressuring the SEC to crack down on short-selling strategies that profit when bank stocks slide, but any careless moves could create more fissures in the financial system.
Coinbase's Chief Legal Officer Requests Changes to SEC Rule on Registered Investment Advisers' Custody Obligations for Crypto Assets
Coinbase's chief legal officer, Paul Grewal, has requested revisions to the proposed rule regarding registered investment advisers' obligations to hold client assets at qualified custodians. Grewal believes that the revised RIA custody rule unfairly targets crypto and fails to protect other asset classes. He suggests several revisions to the rule to protect investors. Coinbase is waiting for clarity on digital asset regulation from the SEC before making any further plans. The SEC is currently scrutinizing Coinbase's custody service.
Crypto Industry Opposes US SEC Proposal To Tighten Custody Rules
The United States securities regulator's proposal to tighten rules around crypto custody has been met with opposition from the Blockchain Association and Web3 venture capital fund Andreessen Horowitz. The Blockchain Association criticized the proposal, claiming that it would "drastically curtail investment in digital assets" and is "unlawful". Andreessen Horowitz called the proposal a "misguided and transparent attempt to wage war on crypto". The proposal would apply more stringent rules on investment advisors in the custody of assets, including crypto, and has even seen pushback from within the SEC.
American Crypto Exchange Bittrex Files for Chapter 11 Bankruptcy
Seattle-based cryptocurrency exchange Bittrex has filed for Chapter 11 bankruptcy, citing liabilities and assets in the $500 million to $1 billion range and over 100,000 creditors. The filing comes after the US Securities and Exchange Commission (SEC) charged Bittrex for failing to comply with securities law by not registering with the financial watchdog. The SEC alleges that the exchange took in at least $1.3 billion in illicit revenue between 2017 and 2022.
Ripple CEO Reveals $200 Million Spent Defending SEC Case
Ripple CEO Brad Garlinghouse revealed that the company has spent $200 million defending itself against the lawsuit brought by the SEC. He expressed regret about the US falling behind in crypto regulation compared to the UAE and Europe. Garlinghouse advised entrepreneurs not to start in the US due to politics being put ahead of policy. The situation is ongoing, and more information will be added as it becomes available.
Crypto Evening Briefing: Bitcoin Miners Reap Profits As Mining Difficulty Hits 3-Month Low
Bitcoin miners have received a boost in profits after the scheduled difficulty level adjustment resulted in a positive balance, which is the first time since February that the difficulty has decreased.
Ripple Board Member Hints Coinbase’s Next Move
Coinbase, the largest cryptocurrency exchange in the United States, has won the first legal round against the Securities and Exchange Commission (SEC) to achieve regulatory clarity around digital asset trading. Amid this win, Coinbase has announced the launch of an international exchange offering Bitcoin and Ethereum perpetual futures. Asheesh Birla, a board member at Ripple, has hinted that Coinbase is transitioning from a crypto exchange to a crypto-enabled banking service, with a mission to build a more fair, efficient, accessible, and transparent financial system for digital assets. Coinbase has also stated its dedication to partnering with high bar regulators across US and non-US jurisdictions to update the financial system.
Deaton and Former SEC Lawyer Clash Over Ripple XRP Sales
Legal experts are engaging in a heated debate regarding Ripple's XRP sales, which the United States SEC charged Ripple and two of its execs with selling unregistered securities in the form of XRP in December 2020. Pro-XRP lawyer John Deaton engaged former SEC attorney Marc Fagel in a debate over the charges filed by the securities regulator, and Fagel noted that the SEC has a better summary judgment argument than Ripple. However, Deaton has a problem with the way the SEC laid out its argument, which is capable of implicating secondary market transactions. Deaton asserts that the SEC's argument is far-fetched, traveling through space and time into the future and capturing all possible future sales, and they cannot categorically state that the law backs the SEC's argument in the Ripple or protects investors. The development comes days after Australian-based lawyer Bill Morgan urged XRP holders to engage Fagel politely.
