Cryptocurrencies To Watch

Tag: SEC

  • Donald Trump Picks Crypto-Friendly Paul Atkins to Lead the SEC

    Donald Trump Picks Crypto-Friendly Paul Atkins to Lead the SEC

    President Donald Trump has officially nominated Paul Atkins, a former SEC commissioner and vocal advocate for the crypto industry, as the new Chairman of the Securities and Exchange Commission (SEC).

    The US President shared the news via a post on Truth Social, a social media platform he launched in 2022 through his company, Trump Media & Technology Group (TMTG).

    “I am delighted to announce the nomination of Paul Atkins to be the next Chairman of the Securities & Exchange Commission. Paul is a proven leader for common sense regulations. He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World. He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.”

    Why Atkins?

     In his post, Trump expressed his confidence in Paul Atkins as his pick for SEC Chair, citing his extensive experience in financial regulation.

    The US President claimed Atkins’ background as CEO of Patomak Global Partners and Co-Chairman of the Digital Chamber’s Token Alliance demonstrates his expertise in digital assets. His tenure as a former SEC Commissioner from 2002 to 2008 also showcases his commitment to transparency and investor protection.

    Trump Delivers on Crypto Promise

    Trump has fulfilled one of his key crypto campaign promises by nominating Paul Atkins, a pro-crypto former SEC commissioner, to lead the SEC. During his campaign, the pro-crypto President made about ten promises to the crypto industry to foster its growth.

    One promise was to fire anti-crypto Gary Gensler and replace him with a more crypto-friendly leader, and it seems he’s making good on that promise. Last month, Gensler announced his plans to step down as SEC chair in January 2025, paving the way for Trump’s nominee, Paul Atkins, to take the reins.

    Between 2021 and 2023, during Gensler’s tenure as SEC Chair, the agency launched 100 lawsuits against major industry firms, including Binance, Ripple, Kraken, and Coinbase. Meanwhile, with Atkins at the helm, the crypto industry is poised for a more favorable regulatory environment, given his track record of support for the space.

    The news of Atkins’ appointment caused a stir in the space. While some may have concerns about his approach to financial regulation, the majority of the crypto community, including Jake Chervinsky, Chief Legal Officer at Variant Fund, is optimistic about the latest development.

    Meanwhile, the crypto market has reacted positively to the news, with Bitcoin surpassing the $100,000 mark and other cryptocurrencies like XRP and Reserve Rights (RSR) experiencing significant gains.

  • Paul Atkins Becomes Leading Candidate for SEC Chair Position

    Paul Atkins Becomes Leading Candidate for SEC Chair Position

    Former commissioner of the United States Securities and Exchange Commission (SEC) Paul Atkins has emerged as a leading candidate to succeed Gary Gensler as the SEC Chair under President-elect Donald Trump’s new administration.

    Atkins, known for his pro-crypto stance and critical views on regulatory overreach, could signal a significant shift in the SEC’s approach to digital assets and blockchain innovation.

    A Forward-Thinking Candidate

    FOX journalist Eleanor Terrett noted in an X post that Atkins stands out as both well-versed in crypto and highly knowledgeable about the SEC’s structure and processes, having previously served as a commissioner and a staff member during the tenure of Richard C. Breeden and Arthur Levitt.

    The post also explained that Atkins is regarded as someone who can champion a forward-thinking innovation strategy while restoring the agency to the “gold standard” that many Republicans believe diminished during Gary Gensler’s tenure as chair.

    Under his ruling, the US could see a shift toward a regulatory framework that encourages innovation in the crypto space, potentially countering accusations of overregulation leveled at the SEC’s current leadership.

    Atkins’ track record suggests he may take a more measured approach. He has previously advocated for clear and practical rules, which could align well with industry calls for a more collaborative relationship with regulators. His potential leadership is seen as an opportunity to foster innovation while maintaining necessary investor protections.

    The announcement comes after Trump nominated Jay Clayton, the former SEC chairman, as the new US Attorney for the Southern District of New York. Trump noted that Clayton is a highly respected business leader, counsel, and public servant who received Engineering and Law degrees from the University of Pennsylvania and an Economics degree from the University of Cambridge.

    According to Bloomberg, Trump is reportedly exploring creating a new White House role focused on crypto policy. He is also allegedly evaluating the possibility of moving the regulation of cryptocurrencies and digital trading platforms from the SEC to the Commodity Futures Trading Commission (CFTC).

    Not a Good Leadership

    Under Gensler, the SEC has been criticized for pursuing aggressive lawsuits against major crypto players, such as Coinbase, Binance, Kraken, and Ripple, while offering little regulatory clarity. Many industry leaders argue that this approach has stifled innovation and pushed blockchain companies.

    As such, Singapore-based crypto exchange Crypto.com filed a lawsuit against the SEC. The firm noted in its lawsuit that the SEC had overstepped its statutory boundaries by unilaterally expanding its jurisdiction. Additionally, it questions the regulator’s unlawful rule that treats nearly all crypto assets as securities, regardless of how they are conducted.

  • U.S. SEC Obtained Over $5B From Crypto Firms in 2024

    U.S. SEC Obtained Over $5B From Crypto Firms in 2024

    The United States Securities and Exchange Commission (SEC) has released its annual enforcement reports for fiscal year 2024, noting a decrease in the number of actions taken but a massive rise in financial remedies to $8.2 billion, with a greater percentage coming from issues settled with cryptocurrency firms operating in the United States.

    Notably, the SEC’s attack on crypto firms is already coming to an end. The incoming 47th President of the U.S., Donald Trump, has revealed plans to assign a crypto-friendly chairman to lead the agency in January 2025.

    Over $5B From Crypto Firms

    A highlight of the SEC’s enforcement and financial remedies is its case with Terraform Labs, a startup founded by Do Kwon and Daniel Chin to develop the Terra blockchain protocol and payment platform. Terraform Labs also launched TerraUSD stablecoin.

    However, its operations didn’t last long, as TerraUSD couldn’t maintain a constant $1 price, leading investors to lose $40 billion. The SEC found Kwon and his establishment guilty of civil fraud and reached a settlement agreement of $4.47 billion.

    Terraform’s case covered about 56% of the financial remedies the SEC obtained in 2024.

    In a recent case with crypto lender Genesis Global Capital in Q1 2024, the agency charged it with offering and selling unregistered securities through its Gemini Earn program. Consenting to the charges, Genesis agreed to settle the SEC with a $21 million fine.

    In addition, the SEC has many ongoing cases with various crypto firms and their operations in the U.S., including Ripple Labs, the digital payment network that launched the XRP token, crypto exchanges Coinbase, Binance, Kraken, and others.

    SEC Crypto Attack Nears End

    With the recently concluded U.S. presidential election, the hopes of a crypto-friendly SEC have risen as the president-elect has promised to achieve this.

    Notably, anti-crypto SEC chair Gary Gensler will step down on January 20, 2025. While overseeing the financial agency, he opposed the crypto ecosystem. Therefore, the community sees his resignation as a big win for the industry, as it may pave the way for more crypto firms to operate freely in America.

    Meanwhile, the agency has approved Coincheck as the first Japanese crypto exchange listed on the Nasdaq global stock market.

  • Gary Gensler to Exit the SEC in January 2025

    Gary Gensler to Exit the SEC in January 2025

    America’s anti-crypto Securities and Exchange Commission (SEC) chairman, Gary Gensler, will resign on January 20, 2025. He has served the United States in the position for more than three and a half years under President Joe Biden’s administration.

    Notably, Gensler’s resignation falls on the same date as President-elect Donald Trump’s inauguration as the new U.S. President.

    Gensler’s Tenure Comes to an End

    According to a recent press release by the SEC, Gensler has helped the agency to make remarkable progress over the years. He helped America attain a higher level of efficiency, resiliency, and integrity. Additionally, he led many law enforcement cases, ensuring that criminals received their punishments while stolen funds were refunded to affected investors and rightful owners.

    However, Gensler’s tenure has come to an end as the incoming U.S. President is not pleased with his dealings with the crypto industry. During his campaign, he promised to fire Gensler as one of his steps to ensure that America goes pro-crypto under his regime.

    Obviously, Gensler has only shown pessimism for the crypto community and the growing blockchain technology. Consequently, U.S. lawmakers questioned his approach to crypto regulation in a September House Financial Services Committee hearing, labeling him as the most destructive and lawless chair in the agency’s history.

    Gensler Expresses Gratitude

    Earlier last week, Gensler gave a seeming resignation speech in which he noted to his audience that Bitcoin (BTC), Ether (ETH), and stablecoins are not securities. He also reiterated the many successful battles he has won for the agency against many fraudulent crypto projects.

    Moreover, following his official resignation notice, he said, “The Securities and Exchange Commission is a remarkable agency. It has been an honor of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world.”

    Meanwhile, crypto-enthusiastic Americans believe that Gensler’s resignation will be a big win for the industry. Speculations keep rising as the community expects a new crypto-friendly SEC chair like Dan Gallagher, Ripple’s CLO, to help drive crypto adoption in the U.S. and achieve Trump’s goal of making America the world’s capital of Bitcoin.

  • SEC Chair Gary Gensler Presents a Seeming Resignation Speech

    SEC Chair Gary Gensler Presents a Seeming Resignation Speech

    The United States Securities and Exchange Commission (SEC) chairman, Gary Gensler, presented a speech today at a legal conference in New York. The oral presentation, which initially seemed like an 11th-hour conviction speech urging the SEC to maintain its crypto stance, ended like a farewell resignation speech.

    Notably, most of the crypto community has portrayed Gensler as hostile in his approach to crypto regulation. This has earned him enemies in the Republican Party, including President-elect Donald Trump, who pledged during his campaign to “fire Gary Gensler.”

    Gensler Hints Resignation at Speech Conclusion

    Gensler’s speech shifted from a convincing tone to a rather farewell speech during the concluding part. He expressed his admiration for the SEC and its staff, describing the agency as “remarkable” and its team as “deeply mission-driven.” According to Gensler, these could earn higher salaries elsewhere but choose to work at the SEC to serve the public interest.

    The SEC chairman’s final statement hints that he is resigning from the SEC. He said:

    “It’s been a great honor to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world…I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance.”

    Meanwhile, at the likely hint of resignation by the SEC chair, XRP has witnessed an 11% increase, reflecting the community’s interest in the ongoing lawsuit between Ripple Labs and the SEC. A no-Gensler chairman is like a win for the Ripple community.

    Gensler Explains Reasons for Crypto Stance

    Believing that the new administration may adopt a more lenient approach, Gensler’s speech began as an effort to push for stricter regulations on crypto markets before the incoming Trump administration takes over. Gensler emphasized the importance of “rules of the road” to ensure proper disclosure and protect investors, citing the lessons learned from the Great Depression.

    The Great Depression was a severe global economic downturn that lasted from 1929 to 1939, causing widespread devastation. It began in the United States with the Wall Street stock market crash, also known as “Black Tuesday,” and quickly spread to other countries. The global economy shrank by 15% between 1929 and 1939, with some countries experiencing declines of up to 30%.

    In what seems like a move to find a balance in his speech, Gensler reminded his audience that Bitcoin, Ether, and stablecoins are not security. He further highlighted the SEC’s successful legal battles against crypto-related investment products. He believes the industry is plagued by noncompliance and should adhere to decades-old “rules of the road.”

  • SEC Approves Coincheck as First Japanese Crypto Exchange Listed on Nasdaq

    SEC Approves Coincheck as First Japanese Crypto Exchange Listed on Nasdaq

    The United States Securities and Exchange Commission (SEC) has approved Coincheck, a crypto exchange headquartered in Tokyo, Japan, to list on the Nasdaq Global Market. The milestone marks the first time a Japanese crypto exchange will be publicly traded on a stock exchange in the U.S.

    The exchange will go public via a merger with Thunder Bridge Capital Partners IV, Inc. (“THCP”), a Nasdaq-listed firm established to assist private companies in making their market debut.

    SEC Application Approval

    With the SEC’s approval, TBCP is set to hold a shareholder vote on December 5 to authorize and complete the business merger, a crucial step for the listing to proceed.

    If the shareholders approve, the merger with TBCP will be finalized, and Coincheck is expected to debut on Nasdaq on December 10, trading under the ticker symbol CNCK.

    Coincheck has filed various documents to the SEC as part of the listing process. With the SEC’s recent approval, THCP will now distribute the final voting materials to its shareholders, who will vote on the merger.

    THCP shareholders and other stakeholders are urged to examine these documents, which are accessible on the SEC’s EDGAR website.

    The listing will allow Coincheck to access capital from U.S. markets, potentially expand into new regions, and enhance its trading and security capabilities.

    For investors, the Nasdaq listing provides an opportunity to gain exposure to the growth of the crypto market via traditional stock investments without directly purchasing digital assets.

    Nasdaq Listing Implications

    The scheduled Nasdaq listing also represents a significant milestone for Japan and the U.S. If the merger is completed, it will enhance global market connectivity and may encourage other Japanese crypto exchanges to seek listings in international markets.

    While the listing could attract other Japanese crypto exchanges, it may draw more global crypto companies to U.S. markets, further solidifying the country’s anticipated pro-crypto regulatory approach under President-elect Donald Trump’s upcoming administration.

    Founded in 2014, Coincheck has long been one of Japan’s leading cryptocurrency exchanges, catering to millions of users in Asia. Coincheck made headlines in 2018 when it was acquired by Monex Group, a prominent Japanese online brokerage, following a high-profile hack in April 2018.

    Since then, Monex has rebuilt Coincheck’s reputation by prioritizing security and regulatory compliance.

  • Crypto Exchange Binance Seeks Dismissal of SEC Lawsuit Amendment

    Crypto Exchange Binance Seeks Dismissal of SEC Lawsuit Amendment

    Attorneys for Binance and its former CEO, Changpeng Zhao, have submitted a new motion requesting the district court to dismiss the lawsuit filed by the United States Securities and Exchange Commission (SEC).

    The lawsuit, filed in June 2023, accused Binance and Zhao of operating unregistered exchanges, broker-dealers, and clearing agencies and misrepresenting trading controls on the platform. The SEC also charged the exchange with violating unregistered sales of BNB and BUSD tokens.

    SEC Amends Lawsuit

    The SEC recently amended the lawsuit, adding new charges accusing Binance of being involved in securities transactions. These transactions include reselling tokens created by others, developers selling their tokens, initial exchange offerings (IEOs), paying employees with BNB, and depositing crypto assets into the Binance Simple Earn program.

    Notably, to determine if these transactions fall under SEC authority, each must meet the Howey test, which requires an investment contract, expectation of profits, investment in an enterprise, and profit derived from others’ efforts.

    Binance Responds to Lawsuit Amendments

    Binance claims reselling tokens is not a securities transaction. It explained that when buyers and sellers trade, they are unknown to each other and do not invest in the enterprise. It further noted that tokens have everyday uses like payment, fees, and gaming and do not meet the Howey test for securities.

    The pioneer exchange also argued that developers selling their tokens are similar to resales and lack investment contract features. According to the filing, tokens are marketed for use cases, not investment, and buyers do not expect profits from developers’ efforts.

    Concerning paying employees with BNB, the exchange attorneys claim the token is an alternative currency, not an investment. Hence, while employees receive payment in the Binance-affiliated coin, they are not investing in Binance. The lawyers further argued that  Simple Earn is not an investment contract. Instead, users deposit crypto and receive interest but do not buy shares.

    Binance Legal Woes in U.S.

    Aside from regulatory lawsuits, Binance has also faced other legal challenges. Earlier this year, the exchange was sued by U.S. victims and families affected by the 2023 Hamas-led attack on Israel, alleging that Binance facilitated Hamas’s terrorist activities by providing funding.

    In Q2 2024, its founder was sentenced to four months in prison for violating U.S. money laundering laws. As part of a settlement with the U.S. Department of Justice, it paid $4.3 billion in fines, and Zhao stepped down as CEO of Binance.

  • MetaMask Dev Consensys Blames “SEC’s Abuse of Power” for Latest Staff Cut

    MetaMask Dev Consensys Blames “SEC’s Abuse of Power” for Latest Staff Cut

    Consensys, a blockchain technology company and developer of the non-custodial wallet MetaMask, recently announced its decision to lay off 20% of its staff. This move comes amid tensions with the United States Securities and Exchange Commission (SEC).

    Consensys Blames “SEC’s Abuse of Power”

    Consensys claims its latest staff cut is a response to regulatory uncertainty, as unclear frameworks in crypto markets have created difficulties for blockchain innovators and investors. While trying to buttress this point, the company’s CEO, Joseph Lubin, attributed the blame to the SEC’s abuse of power. He said:

    “Multiple cases with the SEC, including ours, represent meaningful jobs and productive investment lost due to the SEC’s abuse of power and Congress’s inability to rectify the problem. Such attacks from the U.S. government will end up costing many companies that have been investigated, sued, or sent Wells Notices, many millions of dollars.”

    Notably, the controversy between Consensys and SEC focuses on the regulatory classification of Ethereum (ETH), which the first believes should not be considered a security. However, the SEC’s chairman, Gary Gensler, has made statements that suggest otherwise, leading to confusion and uncertainty among users.

    It is essential to mention that regulatory woes are not the only reason for the staff cut. Lubin claimed the move is also a strategic response to the challenging macroeconomic environment, driven by rising interest rates, inflationary pressures, and tightening liquidity. The company believes that by reducing costs, it will thrive amid economic and regulatory uncertainty.

    Consensys Pledges to Support Affected Staff

    During the announcement, Lubin claimed the company would support employees impacted by the staff cut, helping them transition smoothly to their next job opportunity. The proposed support offering includes generous severance packages based on tenure, extended stock option exercise windows, and career outplacement services.

    These services include one-on-one coaching, networking opportunities, and interview guidance. Additionally, Consensys will continue healthcare benefits in applicable regions. Lubin added that these support measures aim to appreciate the valuable contributions of departing employees and empower them for future success.

    Meanwhile, the SEC and its chairman have been facing intense backlash lately. During a hearing, a congressman called Gensler the most destructive chair, and Commissioner Mark Uyeda labeled the SEC’s crypto approach a disaster. Even Coinbase’s CEO Brian Armstrong joined the chorus of dissatisfaction, stating that the next chairperson should publicly apologize to Americans.

  • Brian Armstrong Says Next SEC Chair Should Apologise to Americans

    Brian Armstrong Says Next SEC Chair Should Apologise to Americans

    Coinbase CEO Brian Armstrong has urged the future chair of the United States Securities and Exchange Commission (SEC) to drop the agency’s “frivolous” lawsuits targeting crypto companies and apologize to Americans.

    In a recent post on X, Armstrong noted that the apology would not reverse the harm and damage done to the country but would begin to rebuild confidence in the SEC as a trusted institution.

    The CEO pointed out the agency’s approach to regulating the crypto industry, which he claimed has triggered avoidable lawsuits against companies like Coinbase.

    SEC Unable to Classify Crypto Assets

    Under Gary Gensler’s leadership, the SEC has released contradictory statements on key matters, such as classifying digital assets as securities and the agency’s jurisdiction over crypto trading platforms.

    Armstrong noted that in 2018, the SEC declared that crypto assets were not securities, only to reverse that stance in 2021 by categorizing the asset class as investment contracts. By 2024, the agency had altered its position again, asserting that digital assets are not securities.

    The securities watchdog has also changed its classification stance on bitcoin (BTC). The regulator initially classified the asset as a security in 2023, only to re-establish its non-security status in 2024.

    Armstrong further expressed concerns about the SEC’s authority over crypto exchanges. In 2021, the regulator claimed that no regulatory authority governed these platforms. A year later, it claimed that it had Congressional jurisdiction to regulate crypto exchanges.

    SEC Goes After Big Firms

    In recent times, the SEC has filed charges against prominent companies like Coinbase, Kraken, and Binance, and over $7.42 billion in fines have been imposed on crypto firms and individuals.

    This year’s record far exceeds the totals from the previous two years, which were $308.9 million in 2022 and $150.26 million in 2023, which reflects a 63% increase compared to last year’s.

    “The Most Lawless Chair”

    The SEC approach to crypto matters has also led Gensler to face scrutiny over his leadership, with Minnesota Representative Tom Emmer criticizing him as the most destructive and lawless chair in the agency’s history.

    Many in the crypto space have advocated for Gensler’s removal, a move Republican presidential candidate Donald Trump has pledged to pursue if elected.

  • Crypto.com Files Lawsuit Against SEC to Safeguard the Future of Crypto in the U.S.

    Crypto.com Files Lawsuit Against SEC to Safeguard the Future of Crypto in the U.S.

    Singapore-based crypto exchange Crypto.com has filed a lawsuit against the United States Securities and Exchange Commission (SEC).

    The crypto exchange has joined forces with other companies to actively defend themselves and take a stand against a federal agency overstepping its legal authority, and protect the future of the crypto industry in the U.S.

    “Our decision to sue the SEC follows our receipt of a Wells notice from the Commission staff, illustrating that the SEC’s unauthorized and unjust regulation by enforcement campaign continues despite bipartisan indications that the next Administration will take a more constructive and effective approach to advancing crypto in the U.S,” the firm wrote.

    Legal Action Against the SEC

    The firm noted in its lawsuit that the SEC has overstepped its statutory boundaries by unilaterally expanding its jurisdiction. Additionally, it questions the regulator’s unlawful rule that treats nearly all crypto assets as securities, regardless of how they are conducted.

    The company also noted that its primary objective is to stop the SEC’s unlawful overreach and violation of federal law.

    “Crypto.com is committed to using all regulatory tools available to help bring certainty to the industry, including this petition for joint rulemaking under the Dodd-Frank Act,” the company added.

    The lawsuit claims that the SEC has failed to offer clear guidelines or a consistent regulatory framework, forcing crypto companies to navigate compliance through uncertainty. Crypto.com argues this has led to an unfair landscape, where certain firms are singled out while others face no scrutiny.

    Crypto.com believes that security and compliance are essential to driving mainstream adoption of crypto, and all of its achievements are centered around safety, security, and regulatory adherence.

    SEC Targets Major Platforms

    Over the years, the SEC has ramped up enforcement, targeting various crypto platforms, including high-profile exchanges like Binance, Kraken, and Coinbase. The securities watchdog claims that many tokens traded on these platforms are unregistered, falling under its jurisdiction.

    Exchanges have also told the agency that crypto assets are not securities. For instance, in September 2024, US-based crypto exchange Kraken replied to the SEC charges of offering crypto asset securities and investment contracts.

    The exchange stated that the SEC violated federal securities laws and that its securities classification is unclear.