SEC
SEC pushes deadline to decide on ARK 21Shares spot Bitcoin ETF to January 2023
The United States Securities and Exchange Commission, or SEC, has extended its window to decide on whether shares of ARK 21Shares’ Bitcoin exchange-traded fund could be listed on the Chicago Board Options Exchange BZX Exchange. In a Nov. 15 announcement, the SEC issued a notice for a longer designation period for the application of ARK 21Shares’ Bitcoin (BTC) ETF, originally filed with federal regulator on May 13. The SEC twice extended its window to approve or disapprove of the crypto investment vehicle in July with an extension and in August with a comment period. “The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and...
SEC issues subpoena to influencers promoting HEX, PulseChain and PulseX
Over several years, social media influencers have earned a bad rep among regulators for shilling risky and unvetted tokens to millions of investors. Pursuing the crackdown on such scenarios, the U.S. Securities and Exchange Commission (SEC) reportedly issued a subpoena to influencers who were found promoting cryptocurrencies such as HEX, PulseChain and PulseX. Swedish researcher Eric Wall shared an official letter from the SEC dated Nov. 1, which was addressed to influencers. It read: “We believe that you may possess documents and data that are relevant to an ongoing investigation being conducted by the staff of the United States Securities and Exchange Commission.” The letter was accompanied by a subpoena that was issued as part of the investigation, which demanded the influencers in ques...
Web3 Foundation makes bold claim to SEC: ‘DOT is not a security. It is merely software’
The entity supporting research and development of Polkadot as well as overseeing fundraising efforts for the blockchain has argued that the United States Securities and Exchange Commission should not consider the DOT token a security under its regulatory purview. In a Nov. 4 blog post, the Web3 Foundation Team’s chief legal officer Daniel Schoenberger said Polkadot’s native token (DOT) had “morphed” and was “software” rather than a security. Schoenberger said the claim was “consistent with the views” it had shared with the SEC following discussions it began in November 2019. “While the Polkadot vision had not contemplated that the blockchain’s native token would be a security, we understood that the SEC’s view was likely to be that the to-be-delivered token would be a security, at least at...
Bitcoin mining firm Bitdeer could delay public offering to 2023
Bitdeer, a crypto mining firm spun off from China-based mining manufacturer Bitmain, may see its public offering on the Nasdaq delayed a year depending on a vote from shareholders of the Blue Safari Group Acquisition Corp. In a Nov. 2 Securities and Exchange Commission filing, Blue Safari said it will be holding a shareholding meeting before the end of 2022 to vote on whether to extend the deadline of its deal with Bitdeer. The mining firm announced in November 2021 that it had entered into a definitive merger agreement with Blue Safari in order to go public through a special purpose acquisition company in the United States. The SEC filing stated the shareholders could give the company the option to extend the deadline up to four times until December 2023, as well as move the meeting...
Blockchain Association throws support behind Ripple in SEC duel
United States-based crypto advocacy group Blockchain Association has come out in support of Ripple Labs amid its ongoing legal battle with the Securities and Exchange Commission (SEC), claiming the case could be very important for the future of the crypto industry. In an Oct. 28 post, the advocacy group announced it will “stand” with the American crypto economy by filing an amicus brief, also known as “friend of the court,” in the SEC enforcement action against Ripple. Nearly two years ago, the SEC announced they were suing Ripple, former CEO Christian Larsen and current CEO Brad Garlinghouse in Dec. 2020 for allegedly raising $1.3 billion through unregistered securities sales through XRP (XRP). “This case, which is just one in a long line of SEC efforts to regulate by enforcement, h...
Ripple reports XRP holdings below 50% for the first time
Ripple Lab’s XRP (XRP) token holdings have dropped below 50% of the total circulating supply for the first time in the company’s history. Ripple has faced criticism in the past by some that have raised questions over the firm’s significantly large ownership of XRP, arguing that it gives the company centralized control over its XRP Ledger (XRPL). In a Q3 report published on Oct. 27, Ripple once again refuted that criticism while also pointing out that its XRP holdings continue to decline, falling below 50 billion tokens, or 50% of the total supply. “Critics have pointed to the company’s XRP ownership as an indicator that the XRP Ledger is controlled by Ripple. This is not true,” Ripple stated, adding that: “The XRP Ledger (XRPL) uses Federated Byzantine Consensus to validate transactions, a...
Prometheum partners with Anchorage Digital on SEC-registered alternative trading system
Prometheum Ember ATS announced the launch of its alternative trading system (ATS) on Oct. 26. The new ATS is registered by the United States Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority. Prometheum Ember ATS will offer digital asset securities trading, clearing, settlement and custody. The new ATS has partnered with Anchorage Digital Bank to help it provide its service, which is meant to “seamlessly integrate with legacy securities trading systems.” Prometheum stated that its ATS “enables institutions to trade digital asset securities under Federal Securities Laws.” It will initially support digital assets Flow, Filecoin, The Graph, Compound and Celo. Prometheum founder and co-CEO Aaron Kaplan said in a statement: “Prometheum sets ...
SBF: FTX to filter assets it thinks are securities from US listings until registration in place
Sam Bankman-Fried (SBF) has written a set of suggested standards for the crypto industry “while waiting for full federal regulatory regimes,” which were posted on the FTX Policy blog on Oct. 19. The post covers many of the questions facing regulators and operators, with specific reference to the United States at points. In particular, SBF outlined a plan for treating assets in the U.S. in regard to their status as securities or commodities. FTX will implement his plan, SBF wrote. In the United States, SBF wrote, the FTX legal team will analyze assets using the Howey test, case law and guidance to determine whether an asset is a security or commodity. Non-security assets will be classed as commodities by default. Moreover: “If we do find an asset to potentially be a security, we will not li...
3 signs suggesting the XRP price boom can continue in Q4 2022
XRP (XRP) has made considerable gains over the past month as traders continue to shower confidence on Ripple’s legal win against the United States Securities and Exchange Commission (SEC). For instance, the XRP price gained 25% thirty days after Ripple and the SEC filed for an immediate ruling on whether or not XRP sales violated U.S. securities laws. In comparison, Bitcoin (BTC) and Ether (ETH) are down 4% and 11% over the same period, respectively. XRP/USD versus BTC/USD and ETH/USD daily price chart. Source: TradingView Now, a flurry of indicators, ranging from on-chain to technical, hints XRP can continue its uptrend going into 2023. XRP price “bull pennant” Bull pennants are bullish continuation patterns that form as the price consolidates in a triangle-like range after...
CFTC action shows why crypto developers should get ready to leave the US
Considerable anxiety exists in the world of Web3 related to regulation and the legal status of cryptocurrency projects. It’s particularly apparent in the United States, where the Commodity Futures Trading Commission (CFTC) fueled concerns in September with an announcement that it was imposing a $250,000 fine on a decentralized autonomous organization (DAO), Ooki DAO, and its investors. The fine was particularly ominous, considering DAOs are intended to be “regulation proof.” The CFTC said in its statement on the issue that Ooki DAO’s bZeroX protocol offered illegal off-exchange trading of digital assets. The agency took issue with the fact that the founders, Tom Bean and Kyle Kistner, tried to use the existing bZeroX protocol within the DAO to put it beyond the reach of regulators. “By tra...
Grayscale BTC Trust trades at a record 36.7% discount, but is it justified?
U.S. investors have been waiting for a Bitcoin exchange-traded fund (ETF) approval since May 2014 when the Winklevoss Bitcoin Trust filed an amendment request at the Securities and Exchange (SEC). Over the years, the SEC has rejected every applicant and the latest denial was issued to WisdomTree’s application for a spot Bitcoin ETF on Oct. 11. The SEC concluded that the offer did not have the ability “to obtain information necessary to detect, investigate, and deter fraud and market manipulation, as well as violations of exchange rules and applicable federal securities laws and rules.” Bitcoin investment trust vehicles have existed since 2013, but they have been restricted to accredited investors. Launching a spot-based BTC ETF would open the market to retail investors and a broader ...
The SEC should be aiming at Do Kwon — But it’s getting distracted by Kim Kardashian
In less than a week, Terraform Labs founder Do Kwon’s passport will expire. Interpol issued a red notice for Kwon last month, and this month, his assets were reportedly frozen by the South Korean government. Kwon has been tweeting freely in response — and almost always denies the reports. “I don’t know whose funds they’ve frozen, but good for them, hope they use it for good,” he wrote in one message. Playing a game of cat and mouse with both the authorities and the public, Kwon seems to be living a life of freedom while enjoying his internet access. Meanwhile, regulators with the United States Securities and Exchange Commission have been highly vocal in reprimanding Kim Kardashian and other celebrities for shilling assorted cryptocurrency projects. Although they deserve to be rebuked...
