Coinbase, one of the largest U.S.-based cryptocurrency exchanges, reported a system-wide outage in its services, affecting customers’ crypto operations. On its status site, Coinbase stated that it was aware that “some users may experience failures when sending crypto or withdrawing fiat,” and declared it was working to fix this issue. Later, the exchange recognized experiencing […]
Bitcoin News
Cantor Fitzgerald CEO Foresees Bitcoin Rally at Next Halving, Affirms Tether’s Reserves are Solid
Howard Lutnick, CEO of the renowned financial services company Cantor Fitzgerald, recently shared his insights on bitcoin and tether during an appearance at the World Economic Forum in Davos on Tuesday. Lutnick drew parallels between the fervor around spot gold exchange-traded funds (ETFs) and the anticipated trajectory of bitcoin.
Howard Lutnick Projects Bitcoin Rally Post-Halving, Validates Tether’s Reserve Strength
The Cantor Fitzgerald chief Howard Lutnick has observed that bitcoin (BTC) experienced a significant surge and is now maintaining a stable performance. However, Lutnick anticipates a notable upswing in bitcoin’s value with the onset of the halving event.
“Bitcoin ran up and it’s gonna kind of stay steady. But when the halving comes, it’s going to start to rally again — so bitcoin I think will grow,” he asserted to Bloomberg at the World Economic Forum event in Davos.
Shifting the focus to tether (USDT), the foremost stablecoin in terms of market capitalization, currently valued at .8 billion and witnessing a 4.6% increase in supply over the past month, Lutnick offered insights into Cantor’s involvement with the stablecoin issuer.
He underscored that Cantor plays a significant role in managing numerous assets for Tether and expressed confidence in the company’s financial standing. Lutnick concluded:
From what we’ve seen, and we did a lot of work, they have the money.
Lutnick’s remarks stand in stark contrast to the skepticism surrounding Tether’s reserves, a topic that has been a point of contention among critics. Highlighting USDT’s substantial adoption, he pointed out its pronounced presence in particular economies, notably Turkey and several Latin American nations. Despite this widespread use, Lutnick acknowledged the limited necessity for fiat-linked tokens in the United States, conceding, “It’s not an American thing.”
What do you think about Lutnick’s statements in Davos? Let us know what you think about this subject in the comments section below.
Former SEC Chair Affirms: ‘Nothing Left To Decide,’ Bitcoin ETF Approval Imminent
As anticipation builds around major asset managers’ potential approval of Bitcoin ETF applications, former US Securities and Exchange Commission (SEC) chair Jay Clayton has added his voice to the discussion.
Clayton, who served as SEC chair from 2017 to 2020 during the Trump administration, expressed his belief in the inevitable approval of Bitcoin ETFs in a recent interview with CNBC.
Clayton Highlights Key Factors In Bitcoin ETF Approval
According to Clayton, approving Bitcoin ETFs is not a matter of if but when. He emphasized the robustness and efficacy of the Bitcoin trading market, stating that it has significantly improved over the past five years.
Clayton also highlighted the importance of the technology supporting these ETFs, particularly the custody, creation, and redemption processes.
Clayton views the ability to tokenize and digitize underlying assets as a major step forward, with implications beyond the crypto space. Clayton believes that this development has the potential to bring about significant changes in the broader financial industry.
Clayton’s recent comments align with his previous statements, demonstrating a consistent stance favoring Bitcoin ETF approval.
During his tenure as SEC chair, Clayton expressed skepticism about the BTC market but acknowledged the emergence of reputable institutions in the crypto industry as a game-changing development.
Clayton emphasized the efficiency of a spot Bitcoin ETF for investors. He noted that approving a Bitcoin Spot ETF would become difficult to resist if institutions can demonstrate their effectiveness compared to the futures market.
Clayton also recognized the significance of institutional players entering the crypto industry, as their involvement lends credibility and addresses some of the SEC’s concerns regarding market manipulation.
Moreover, Clayton highlighted the increasing demand from retail investors to gain regulated exposure to Bitcoin through investment products. He also noted that reputable financial industry providers are eager to offer Bitcoin ETFs to the public.
These factors underscore the market’s readiness for regulated investment vehicles that can provide broader access to cryptocurrencies while maintaining investor protections.
Trading Expected To Commence This Week
CNBC has reported that trading of Bitcoin ETFs could commence within days. The news aligns with former SEC Chair Jay Clayton’s optimistic outlook on Bitcoin ETF approval, adding to the growing anticipation surrounding these investment products.
According to CNBC correspondent Kate Rooney, two sources close to the process have indicated that Wednesday will likely be the day of the ultimate approval.
According to CNBC’s sources, this coincides with the application deadline for Ark Invest and 21 Shares, raising the possibility of a trading launch between Thursday and Friday.
As the SEC receives updates on the filings, Rooney concluded that several applications are expected to be given the green light.
Overall, the imminent approval would indicate a shift in acceptance of cryptocurrencies within the regulatory landscape and present an opportunity for investors to access Bitcoin through regulated investment vehicles.
As of this writing, the excitement surrounding the approval has sent Bitcoin to the ,900 mark, up more than 6.8% in the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com
Judge Kaplan Rejects Bankman-Fried’s Request for Sentencing Delay, Affirms March 2024 Date
In a recent development in the high-profile case of Sam Bankman-Fried, the founder of the now-defunct crypto exchange FTX, a request for postponement of the sentencing hearing was firmly denied by U.S. District Judge Lewis Kaplan. Bankman-Fried’s legal team had sought a four to six-week adjournment, citing the need for additional preparation time. However, the court’s refusal to grant this extension marks a significant moment in this ongoing legal saga.
Sam Bankman-Fried Sentencing Date Proceeds as Kaplan Denies Delay
The defense, representing Sam Bankman-Fried (SBF), submitted a formal request for the adjournment of the sentencing hearing, originally scheduled for March 28, 2024. This plea was grounded in the defense’s requirement for more time to gather necessary materials and prepare adequately for the upcoming presentence interview. The defense emphasized the importance of this additional time for a thorough and fair preparation process.
“The defense requires the additional time to collect materials necessary for the sentencing submission and to prepare for the presentence interview,” the letter from Cohen & Gresser LLP’s Mark Cohen and Christian Everdell details.
Furthermore, SBF’s defense highlighted the issue of unresolved counts in the indictment, scheduled for trial on March 11, 2024. They argued that proceeding with the sentencing on the current counts, without resolving the severed counts, could lead to procedural complications and inefficiencies. This situation, they contended, warranted a delay in the sentencing process.
In their communication, SBF’s lawyers articulated concerns over the potential for a separate presentence investigation report (PSR) and an additional sentencing hearing. They emphasized the need for fairness and efficiency, suggesting that all relevant conduct be considered in a single, comprehensive sentencing hearing.
Accordingly, the defense proposed a new timeline, requesting that the sentencing hearing be postponed to an early to mid-May 2024 date. This adjustment would also entail corresponding shifts in the dates for the first and second disclosures of the PSR, aligning with the proposed new schedule for the sentencing hearing.
The request for a delay is reflective of the complex nature of SBF’s case, which involves multiple charges and intricate financial dealings. The defense’s argument for postponement was rooted in the premise of ensuring a fair and complete evaluation of all factors involved in the case.
However, U.S. District Judge Lewis Kaplan, overseeing SBF criminal fraud case, denied the request for the adjournment. The denial signifies the court’s intent to proceed with the existing timeline, indicating the urgency and significance attributed to this case. Kaplan detailed that the defense did not initially object to the current date which led to the latest decision on Dec. 20, 2023.
The denial of the extension request marks a pivotal moment in SBF’s legal journey, setting the stage for the upcoming sentencing in March 2024. As the legal proceedings continue to unfold, the crypto community and the wider financial world remain closely attuned to the outcomes of this landmark case.
What do you think about Judge Kaplan rejecting SBF’s sentence delay request? Share your thoughts and opinions about this subject in the comments section below.
Binance New CEO Affirms Strength In Company’s Fundamentals
The world’s leading cryptocurrency exchange Binance new Chief Executive Officer (CEO) and former global head of regional markets Richard Teng has recently expressed his confidence in the crypto company’s fundamentals.
Binance Fundamentals Shows Strength Amid Challenges, New CEO
Earlier today, the new Binance CEO confidently revealed the fundamental strength of the crypto company despite recent challenges. The CEO took to his official X (formerly Twitter) handle to share his belief in the company. According to Teng, the fundamentals of the company’s business are still solid.
Related Reading: Bitcoin Price Plunge Due to Binance’s Settlement Could Be ‘Buy Dips’ – Here’s Why
Furthermore, the CEO has asserted that the company will continue to operate as the biggest crypto exchange in the world. Teng pointed out several areas that will enable the company to hold on to its position in the crypto market. These include its debt-free capital structure, modest expenses, and robust revenues and profits.
Teng said:
Binance continues to operate the world’s largest crypto exchange by volume, our capital structure is debt-free, expenses are modest, and, despite the low fees we charge our users, we have robust revenues and profits.
Richard Teng’s X post responded to another X post by a user highlighting Binance’s revenue due to the DOJ’s billion fine. According to the user, the company has no “problem paying the fine, as its total assets are valued at approximately .35 billion.”
In addition, the crypto company also holds about .19 billion worth of Stablecoins. Interestingly, the mentioned funds do not include off-chain cash balances or funds kept in wallets outside the Proof of Reserve (PoR). The post read:
I backed out Binance Corporate’s crypto holdings from their Proof of Reserves: .35B in total assets, and .19B in stablecoins. Doesn’t include off-chain cash balances or funds held in wallets, not in PoR. Most likely able to pay the full .3B DoJ fine with 0 crypto asset sales.
Changpeng CZ Zhao Pleads Guilty To Crime
This is so significant that despite the craze following former Binance’s CEO Changpeng CZ Zhao, the company remains strong, according to the new CEO. Changpeng was charged with US money laundering, of which he has recently pleaded guilty to the charge. Furthermore, the former CEO has agreed to pay about million as part of his plea.
In addition to the penalty is Binance’s billion fine as part of a settlement. The company’s fine is regarded as one of the largest corporate penalties in US history.
SEC Chair Gensler Rebuts Claims Crypto Exchanges Lacked ‘Fair Notice,’ Affirms ‘Majority’ of Tokens Are Securities
U.S. Securities and Exchange Commission Chair Gary Gensler discussed crypto exchanges and digital currencies at the Piper Sandler Global Exchange & Fintech Conference. He insisted that there is “nothing about the crypto securities markets that suggests that investors and issuers are less deserving of the protections of our securities laws.” Gensler reasserted his belief that “the vast majority of crypto tokens meet the investment contract test.”
Gensler Dismisses Claim of Exchanges and Crypto Token Issuers Lacking Fair Notice — ‘Don’t Believe It’
Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC), discussed digital currencies at the Piper Sandler Global Exchange & Fintech Conference in New York. Gensler pointed out that some promoters of crypto asset securities claim that their token’s utility exempts it from being classified as an investment contract. However, the SEC chair rejects this argument and insists that “crypto security issuers need to register the offer and sale of their investment contracts with the SEC or meet the requirements for an exemption.”
Gensler stated:
Some additional utility does not remove a crypto asset security from the definition of an investment contract.
Gensler’s speech follows court documents alleging that the current SEC chairman had once sought to advise for Binance in 2019 and reportedly had lunch with Binance’s founder Changpeng Zhao (CZ) in Japan. When discussing crypto exchanges and alleged crypto securities, Gensler emphasized that the SEC “provided years of guidance to market participants on what does or does not constitute a crypto asset security.” He also highlighted that the SEC’s enforcement actions against LBRY, Telegram, and Kik have further clarified the matter.
“In fact, we alleged just this week that Binance’s chief financial officer and chief compliance officer were aware of the Kik case’s relevance to their own business,” Gensler told the attendees. “According to our complaint against Binance, as a result of the SEC’s action against Kik, Binance insiders realized that they would need to ‘start prepping everything’ for a subpoena and Wells notice relating to their exchange token, BNB, including a ‘War chest.’”
Gensler Stresses SEC Has ‘Consistently Alleged That Lending and Staking-as-a-Service Offerings Need to Register’
Gensler believes that there are “flexible rules for the disclosures required in registration statements.” He dismissed claims of “lacked ‘fair notice’” by participants on Twitter, urging people not to believe it. Following regulatory actions against Binance and Coinbase, Gensler stated during an interview with CNBC earlier this week that there is no necessity for numerous digital currencies. “We already have digital currency. It’s called the U.S. dollar. It’s called the euro or it’s called the yen, they’re all digital right now,” Gensler conveyed to the show host.
Regarding staking-as-a-service and the actions taken against Coinbase in relation to this issue, Gensler emphasized that the SEC had provided prior notice through their crackdown on Bitconnect and Blockfi. Gensler asserts that the SEC has “consistently alleged that these lending and staking-as-a-service offerings need to register and provide the investing public with proper disclosures.”
What are your thoughts on SEC Chair Gensler’s response to claims of exchanges and crypto token issuers lacking fair notice? Share your thoughts and opinions about this subject in the comments section below.
Binance Sees Sudden Maintenance, Affirms Crypto is “SAFU”
Around twenty minutes ago, crypto traders across Twitter started to report on Twitter that services at Binance weren’t working.
Michael Van De Poppe, a trader at the Amsterdam Stock Exchange whose work NewsBTC has covered in the past, posted the below tweet trying to get the attention of Binance’s Changpeng “CZ” Zhao:
“Any news on the frozen Binance exchange? It’s 15 minutes already,” Van De Poppe wrote, adding in a later tweet that his data shows that the Bitcoin-to-Tether trading pair had not printed a single trade or data point for fifteen minutes.
Hello @cz_binance,
Any news on the frozen Binance exchange?
It's 15 minutes already.
Thanks in advance,
Traders Community.
— Crypto Michaël (@CryptoMichNL) March 4, 2020
Others echoed these concerns, noting how other cryptocurrencies had also ceased trading, as had other parts of Binance’s roster of products.
Don’t Worry, Binance CEO Affirms
According to an update from CZ, though, trading has been “paused due to a message broker issue,” before adding that his team is “working on it” as he wrote the tweet. For the time being, nearly all services on Binance have been suspended, as a support post explains:
“Binance has suspended deposits, withdrawals, spot trading, margin trading, P2P trading, lending, redemption, as well as asset transfers from sub-accounts, margin accounts, futures accounts, and fiat wallets.”
Trading paused due to a message broker issue. Working on it.
— CZ Binance (@cz_binance) March 4, 2020
While some have been worried about the safety of the crypto stored on the exchange, CZ later confirmed that as this is not a funds issue, “funds are SAFU.”
Crypto Exchanges Have Been Having All Sorts of Problems
It’s an industry-wide issue, then, that exchanges have been struggling with maintaining 100% uptime over recent weeks.
Per previous reports from NewsBTC, last Friday, Bitfinex began “investigating what seems like a distributed denial-of-service” attack (DDoS) attack on its exchange.
Data from the site showed that the site response time and data throughput started to vary dramatically at 6:40 am GMT, eventually reaching a point where the site crashed around 8:00 am GMT, spurring the exchange to respond. About an hour after it began investigating the attack, services for the exchange came back online.
This came a day after OKEx, one of the largest Bitcoin exchanges in Asia, reported a DDoS attack that didn’t affect any users. OKEx’s CEO accused a “competitor” of launching the attack.
The DDoS attacks are decisively different than Binance’s message broker issue, which left the site online but trading services down.
Featured Image from Shutterstock
NewsBTC
SEC Chairman Affirms Stance that Ethereum (ETH) is Not a Security, Could XRP be Next?
The Securities and Exchange Commission’s (SEC) Chairman reaffirmed his agency’s previous stance that Ethereum (ETH) is not a security product, and as such it falls under different regulatory structure that is far more crypto-friendly. He also added that cryptocurrencies similar to Ethereum are also exempt from being classified as securities – although he didn’t name any specific cryptos.
Although this is certainly positive for Ethereum investors, it doesn’t come as a big surprise, and the cryptocurrency that investors are most interested in hearing what the SEC’s thoughts on is XRP – the cryptocurrency most commonly associated with FinTech company Ripple.
Jay Clayton: SEC Has Taken a Balanced Regulatory Approach Towards Crypto
Although many investors and crypto enthusiast see regulatory agencies like the SEC as the “boogeyman” who is out to halt innovation that could pose risks to investors, Clayton explained in a recent response to a letter from Coin Center that he believes the agency has taken a balanced approach towards regulating the nascent markets.
“Overall, I believe we have taken a balanced regulatory approach that fosters responsible innovation in this area, while also protecting investors and the markets,” Chairman Clayton explained while referencing the application of federal securities laws to digital assets.
Importantly, along with affirming his agency’s previous decisions regarding the classification of cryptocurrencies like Bitcoin and Ethereum as non-securities products, Clayton also explained that they will continue to use the “Howey test” along with other tests developed through case law to determine the regulatory status of assets.
“Generally, we look at whether the digital asset fits the definition of a security as set forth in the federal securities laws… We also apply tests developed through case law, including the well-established ‘investment contract’ test articulated by the Supreme Court in SEC v. Howey and its progeny,” he noted.
Could XRP be a Securities Product?
It has long been speculated that XRP could be a securities product under the regulatory frameworks set forth by the SEC – and the cryptocurrency’s close relationship to FinTech company Ripple hasn’t helped its case.
![](https://www.newsbtc.com/wp-content/uploads/2019/03/shutterstock_1156749094-600x400.jpg)
After affirming that Ethereum is a non-securities product, investors are curious to know if XRP is also a non-securities product.
Despite this, the crypto community was surprised to find that the crypto was recently listed on cryptocurrency exchange Coinbase, which led some investors to believe that the exchange determined – through a thorough due diligence process – that the digital asset is not, in fact, a securities product.
Although Clayton did not go as far to mention any cryptos by name in his letter, and those affiliated with the SEC have largely held their tongues when it comes to XRP, he did explain that some products that could initially be designated as securities products may ultimately grow out of that definition.
“A digital asset may be offered and sold initially as a security because it meets the definition of an investment contract, but that designation may change over time if the digital asset later is offered and sold in such a way that it will no longer meet that definition,” he explained.
It is unclear whether or not XRP may be one of these types of assets, but either way the crypto community will likely be pleased to hear that the powerful agency is moving slow and deliberately when it comes to regulating individual digital assets.
Featured image from Shutterstock.
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