The Shanghai Upgrade Could Spark Decentralization In Staking As Big Guns Are Forced To Step Back
The recently implemented Shanghai upgrade in the Ethereum blockchain allows validators to access their staked assets and rewards. However, the SEC and CFTC are increasing their scrutiny of the staking arm of digital asset companies, leading to concerns about centralization. Over 30% of staked ETH is facilitated by exchanges, but regulatory actions against Kraken, Coinbase, and Binance regarding their staking activities have raised concerns. Some commentators argue that the SEC's actions are attempting to make staking completely decentralized, where users deal directly with the protocols without staking pools.
Terraform Labs Co-Founder's Legal Team Argues SEC Lacks Jurisdiction in Cryptocurrency Fraud Case
The legal team defending Do Hyeong Kwon, co-founder of Terraform Labs, has argued that the U.S. Securities and Exchange Commission (SEC) has no jurisdiction in the matter of the lawsuit filed against Kwon. Kwon's lawyers claim that U.S. law precludes regulators "from using federal securities law to assert jurisdiction over the digital assets in this case." Kwon faces charges of leading a multibillion-dollar crypto-asset securities fraud filed by the SEC in mid-February 2023, but his lawyers have filed a motion to dismiss the lawsuit, citing the SEC's definition of digital assets as securities is far from clear.
Former SEC Chairman Uses Broadway Play Analogy to Weigh in on Ethereum's Security Debate
In a recent interview on CNBC's Squawk Box, former SEC Chairman Jay Clayton provided his insight into the ongoing debate about whether Ethereum (ETH) should be considered a security.Clayton used a Broadway play analogy to illustrate his point. He argued that initial investments in the play's production, with the promise of future ticket returns, could be considered securities. However, once the play becomes successful and tickets are sold at the box office, they are no longer securities but merely tickets.
Paradigm Says SEC’s Current Framework Is Unsuitable For Crypto
Crypto investment firm Paradigm said that the current SEC disclosure framework is “unfit” for the cryptocurrency markets.
Do Kwon Says SEC Is Out of Bounds in Pursuing Crypto Fraud Suit
Crypto entrepreneur Do Kwon’s lawyers say a US regulator’s lawsuit accusing him and Terraform Labs Pte of securities fraud is unfounded, in part, because the stablecoin at issue is a currency, not a security.
U.S. SEC Cracks Down On Crypto Firm, Secures Historic $2.8 Mn Settlement
A lawsuit by the U.S. SEC that dates back to September of 2022 against a crypto firm, has finally ended in a settlement worth $2.8 million.
Top AI Dataset Pulls Data From BitcoinTalk, Steemit, and U.S. SEC
The Washington Post and the Allen Institute for AI recently analyzed the C4 dataset, ranking websites by the number of “tokens” or text snippets taken from each source.
Gary Gensler Gets Rare Support On Crypto From Former SEC Chair
Former SEC Chairman Jay Clayton has come under criticism for supporting Gary Gensler over crypto token classification. Clayton argued that courts are not an efficient way to resolve classification issues around securities and commodities, and that many cryptocurrencies currently appear to be securities. He also said that securities can eventually become commodities, but early investors in crypto projects are currently benefiting from a first mover advantage. Clayton's comments followed Gensler's failure to answer whether Ethereum is a security or commodity during a recent House Financial Services Committee hearing. The crypto community criticized Clayton's comments, as they had hoped legal proceedings would clarify regulatory issues. Meanwhile, US regulators are facing more pressure after the European Union passed the Markets in Crypto-Assets (MiCA) regulation, the first comprehensive rules for digital crypto asset service providers.
SEC Advises “Heightened Scrutiny” on Risky Crypto Investments, Kraken CEO Criticises Enforcement Method
The US Securities and Exchange Commission (SEC) has released a bulletin advising financial professionals to exercise "heightened scrutiny" when offering complex or risky investment products such as cryptocurrencies. The SEC highlighted the added complexities or risk components of such products, making them difficult for firms to fully understand terms, features and risks. Consequently, financial professionals must acquire information about retail investors beyond a general understanding of the products, the SEC said. Kraken CEO Jesse Powell has criticised the SEC's regulatory approach, calling its "regulation by enforcement" method unhelpful for the industry and regulators. The bulletin followed SEC charges against cryptocurrency exchange Bittrex for failing to comply with securities law, taking in at least $1.3bn in illicit revenue between 2017 and 2022. Since taking over as the agency's chair two years ago, Gary Gensler said that the SEC has filed about 1,500 enforcement actions, including action against the "rampant noncompliance in the crypto markets". Coinbase is looking to expand outside the US, following regulatory uncertainties with the country's regulatory environment.
CEO Brian Armstrong: Coinbase Is Prepared for a Lengthy Battle with the SEC in Court
Coinbase CEO Brian Armstrong has stated that the exchange is prepared to face the US Securities and Exchange Commission (SEC) in court after receiving a Wells Notice from the watchdog in March, which stated that the agency was preparing to file an enforcement action against the exchange for allegedly violating securities laws in the country. Armstrong stated that the SEC failed to establish clear standards for the crypto market, making the court the last resort for the needed clarity, and that Coinbase is prepared for a lengthy battle with the SEC in case the lawsuit takes years to conclude. He is also optimistic that the exchange has all it takes to win the SEC in court, noting that they have a strong case and that the SEC has to follow the rule of law.
