The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Consensys Software Inc., accusing the blockchain firm of violating federal securities laws by failing to register as a broker and engaging in unregistered securities offerings. The SEC’s complaint highlights Consensys’s operations through its Metamask Swaps and Metamask Staking services. Consensys Faces SEC Lawsuit […]
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EU Anti-Money Laundering Laws Ban Provision of Services for Anonymous Cryptocurrency Accounts
A new set of anti-money laundering laws passed by the EU has banned crypto asset service providers from servicing and providing custody to anonymous cryptocurrency accounts. The approved proposal for the “prevention of the use of the financial system for the purposes of money laundering or terrorist financing” alleges these assets present “risks of misuse […]
Bitcoin News
CFTC Chairman: Many Crypto Tokens Are Considered Commodities Under Existing Laws
The chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, has stated that many digital assets are considered commodities under existing law. Behnam urged the U.S. Congress to hasten the process of establishing a regulatory regime for cryptocurrency. He also emphasized that he and Gary Gensler, the U.S. Securities and Exchange Commission chairperson, “get along quite well.”
Gap in Regulation
Rostin Behnam, the chairman of the Commodity Futures Trading Commission (CFTC), has stated that many digital assets or tokens are considered commodities under existing law. However, Behnam lamented the emergence of a gap in regulation and urged the U.S. Congress to step in.
“It is figuring out how existing, decades-old law, fits into this new technology that seems to be changing and ultimately needs a new way of thinking around policy and legislating,” says @CFTCbehnam on #crypto. “Under existing law, many of the tokens constitute commodities.” pic.twitter.com/F3JPjWq3wG
— Squawk Box (@SquawkCNBC) December 12, 2023
Unsurprisingly, the CFTC chairman’s view on crypto is seemingly at odds with U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler, who sees many altcoins, including XRP and ether (ETH), as securities. Besides insisting that most digital assets are securities, the SEC under Gensler’s stewardship is also accused of deliberately obfuscating crypto regulations.
U.S. Congress Urged to ‘Legitimize the Technology’
Consequently, some U.S. politicians, like Tom Emmer (R-MN), have called for Gensler’s removal and sought to restrict the SEC’s ability to carry out enforcement actions. They have also called for the speedy enactment of laws to regulate crypto.
When asked about the limited movement towards establishing a regulatory regime for digital assets, Behnam, who spoke on CNBC’s Squawk Box, acknowledged that progress has been slow. He declared that the U.S. Congress must move away from its stance of not wanting to legitimize the technology.
“Congress is gonna have to step in and overcome this feeling of not wanting to legitimize the technology and seeing this as not something that is tenable or sustainable. I mean it is here, it hasn’t gone away,” Behnam said.
Behnam also addressed the alleged turf war between the SEC and CFTC, stating that he and Gensler “get along quite well” and share similar values and interests, particularly when it comes to protecting markets. The CFTC chairman suggested that both organizations need to find a way to make the “decades-old law fit into this new technology.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Bitcoin Price Boost Ahead: CEO’s Bold Prediction Points To 10 US States Adopting Pro-BTC Laws In 2024
In a recent statement, Dennis Porter, the co-founder and CEO of Satoshi Action Fund, expressed his belief that the year 2024 will mark a crucial turning point in the history of Bitcoin.
Porter’s remarks amidst growing anticipation surrounding the approval of spot Bitcoin exchange-traded funds (ETFs) and the highly anticipated halving event scheduled for April 2024.
According to Porter, these events, combined with the efforts of the Satoshi Action Fund, have the potential to impact the price and adoption of Bitcoin significantly.
Satoshi’s Plan To Establish The US As Global Bitcoin Leader
Satoshi Action Fund, a non-profit organization dedicated to informing policymakers and regulators about Bitcoin, has actively shifted the narrative surrounding the world’s leading cryptocurrency.
The fund aims to promote “hyper-Bitcoinization,” a term coined to describe the widespread adoption of Bitcoin as a global currency.
One of the primary goals of the Satoshi Action Fund is to advocate for the passage of pro-Bitcoin legislation in 10 different US states by 2024. According to Porter, these proposed laws would protect individuals’ rights to self-hold and mine Bitcoin, positioning the United States as a global leader in Bitcoin adoption and mining.
Interestingly, Porter envisions a future where bipartisan legislation empowers Bitcoin and fosters the growth of an emerging digital asset industry.
Recent developments in the Bitcoin ecosystem further bolster Porter’s optimism. The halving event occurs approximately every four years and is anticipated to reduce the rate at which new Bitcoins are created, potentially leading to increased scarcity and upward price pressure.
Additionally, the long-awaited approval of Bitcoin ETFs by the Securities and Exchange Commission (SEC) has the potential to attract institutional investors and facilitate mainstream adoption.
BTC’s Path To New Heights
Renowned crypto expert Charles Edwards has boldly proclaimed that the recent liquidation of fear, uncertainty, and doubt (FUD) surrounding the crypto market will pave the way for a significant price rebound.
Edwards believes that the culmination of recent developments, particularly the Binance news, will eliminate sources of FUD accumulated over the past two years.
The market has been gripped by panic triggered by headlines associating the term “guilty” with cryptocurrencies. However, Edwards suggests that the recent news concerning Binance should be viewed more as a settlement rather than a detrimental event.
Edwards points out that five years ago, exchanges were not compliant with know-your-customer (KYC) and anti-money laundering (AML) regulations, whereas now, they have implemented these practices. Consequently, Edwards believes that the lingering FUD surrounding Binance can finally be restored.
Looking ahead, Edwards highlights several positive catalysts on the horizon for BTC. These include the potential approval of ETFs, the upcoming Bitcoin halving event, expectations of lower interest rates, and the possibility of a recession leading to increased quantitative easing (QE).
Edwards concludes by envisioning a “Bitcoin liquidity atomic bomb” waiting to explode. With the elimination of FUD and a series of positive triggers aligning, the market is poised for a substantial rebound.
The convergence of ETF approvals, the halving event, accommodative monetary policies, and a potential recession are expected to propel Bitcoin to new heights.
At the time of writing, Bitcoin (BTC) is trading at ,500, experiencing a slight decline of 2.2% over the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com
Spate of Robberies Targeting Swedish Bitcoiners Linked to the Country’s Unfit Privacy Laws
A bitcoin-owning Swedish couple was recently the latest victim of robbers that appear to target prominent bitcoin and crypto personalities. One social media user said the spate of robberies may be linked to Sweden’s antiquated privacy laws which make it easy for criminals to obtain tax records and residence details of targeted individuals.
Victims Publicly Associated With Bitcoin
The robbers, who appear to target prominent Swedish bitcoin and crypto personalities, recently descended on the Stockholm residence of a middle-aged bitcoin-owning couple. According to a report in Aftonbladet, the four robbers physically assaulted, tied up, and even used knives to threaten the couple. The report added that one victim of the robbery had to be ferried to the hospital via ambulance helicopter.
The attack on the unidentified couple is said to be the third time that criminals attacked just days after the victims either live-streamed a bitcoin podcast or “mentioned bitcoin in a public context.” In the first known attack, which occurred in 2022, a Swedish bitcoiner was also physically assaulted and abused despite surrendering their crypto. The traumatic experience is said to have left the bitcoiner scarred for months.
The robbers are also said to have used similar tactics in another home invasion that was reported in October.
Meanwhile, in a post on X (formerly Twitter), social media user Erica Wall linked the attacks to Sweden’s Offentlighetsprincipen or The Principle of Public Access to Information. According to Wall, this law, which is without precedent, “makes residential addresses and tax records public.”
there's now officially a situation in sweden
this monday, a middle-aged swedish couple was tied up in their home and robbed by 4 masked men. they were physically abused and threatened with their own kitchen knives. they were tied up for hours and one had to be escorted to the…
— Erica Wall (@ercwl) November 8, 2023
The social media user suggested that the criminals are able to obtain the targeted victims’ residence details or tax records courtesy of this law. While acknowledging the rationale behind enacting such a law, Wall insisted that such legislation has no place in modern society.
“Sweden is probably one of the least safe countries to be active in the cryptocurrency sector at the moment. I’ve personally left Sweden and I don’t expect to return until the laws around personal privacy change,” the social media user wrote.
‘Duress Wallets’
Reacting to Wall’s post, Jameson Lopp, the co-founder and CTO of Casa, said one of the robbery incidents highlights the importance of having a wallet with minimal amounts of crypto or the so-called “duress wallet.” Lopp also said crypto holders should avoid being known as the “Bitcoin guy.”
However, social media user Norbet shot down this suggestion because a “criminal can look up how wealthy you are in public records.” Another user B Dawah-Muaawiyah Tucker went further:
“The issue with a duress wallet is that there’s no guarantee that it would save your life. How many people get tortured for information they don’t have and die because they don’t give what they don’t have.”
What are your thoughts on this story? Let us know what you think in the comments section below.
SEC Charges FTX Auditor for Helping Clients Violate Securities Laws
The U.S. Securities and Exchange Commission (SEC) announced charges against an accounting firm that worked for failed cryptocurrency exchange FTX. The company, Prager Metis, has been accused of facilitating clients in breaking federal securities laws and also auditor independence violations.
FTX Accountant Prager Metis Charged With Auditor Rules Violations
The U.S. securities regulator has charged accounting firm Prager Metis CPAs, LLC and its California professional services firm, Prager Metis CPAs, LLP with violating auditor independence rules while also aiding and abetting clients’ violations of America’s securities laws.
In its complaint, filed in the U.S. District Court for the Southern District of Florida, the SEC claims that between December 2017 and October 2020 Prager included indemnification provisions in engagement letters for more than 200 audits, reviews, and exams. It alleges:
Prager was not independent from its clients for those engagements, as required under the federal securities laws.
According to the Commission, Prager Metis continued to sign engagement letters with indemnification provisions and issued “accountant’s reports” in which it purported to be independent, despite regulators repeatedly notifying its senior partners that this practice rendered the firm not independent.
“Many of Prager’s clients included those ‘accountant’s reports’ in their filings with the SEC. Prager allegedly also failed to advise its clients of its violations, even after the Public Company Accounting Oversight Board informed Prager that the indemnification provisions violated the independence requirements of the federal securities laws,” the SEC elaborated.
According to a press release published Friday, the complaint seeks a permanent injunction, disgorgement plus prejudgment interest, and a civil monetary penalty against Prager. The SEC also quoted the Director of its Miami Regional Office as stating:
Auditor independence is critical to both protecting the integrity of financial reporting and promoting public trust … Our complaint is an important reminder that auditor independence is crucial to investor protection.
While the announcement does not mention FTX or other customers of the accounting firm, the bankrupt crypto exchange claimed before its November 2022 collapse that its 2021 financial results had been audited by Prager Metis and another company claiming crypto expertise, Armanino. Earlier this year, FTX’s new management expressed concerns regarding the company’s audited financial statements.
What are your thoughts on the SEC charges filed against FTX’s auditor? Let us know in the comments section below.
Binance Seeks Dismissal of SEC Lawsuit — Claims SEC ‘Distorts’ Securities Laws to Gain Power Over Crypto Industry
Crypto exchange Binance and its CEO Changpeng Zhao (CZ) have filed a motion to dismiss the lawsuit against them by the U.S. Securities and Exchange Commission (SEC). “It is clear that the SEC’s lawsuit has no foundation in the currently enacted securities laws,” they argued, alleging: “In attempting to claim regulatory power over the crypto industry, the SEC distorts the text of the securities laws.”
Binance and CZ Seek to Dismiss SEC Lawsuit
Cryptocurrency exchange and its CEO Changpeng Zhao (CZ) filed a joint motion on Thursday to dismiss the lawsuit against them by the U.S. Securities and Exchange Commission (SEC).
According to the court filing, the lawyers for Binance and Zhao wrote: “The SEC’s claims against BHL [Binance Holdings Ltd.] and Mr. Zhao should be dismissed with prejudice.” They added:
It is clear that the SEC’s lawsuit has no foundation in the currently enacted securities laws.
“In attempting to claim regulatory power over the crypto industry, the SEC distorts the text of the securities laws — reading the word ‘contract’ out of the statutory phrase ‘investment contract,’” they further alleged.
Moreover, the lawyers for the crypto exchange and its chief executive warned: “The SEC also seeks to enlarge its jurisdiction globally to include transactions on foreign cryptocurrency platforms, defying supreme court precedent holding that the agency’s regulatory authority ends at the U.S. border.” They stressed: “As the SEC lacks authority to do this, BHL and Mr. Zhao respectfully move to dismiss the Complaint.”
The Binance legal team further argued:
The entire complaint fails because the SEC did not provide fair notice of its novel interpretation of the securities laws.
“Finally, among other deficiencies, the complaint fails to adequately allege that Mr. Zhao personally had the requisite suit-related contacts with the United States to support an exercise of personal jurisdiction over him,” Binance’s lawyers wrote.
In addition, BAM Trading Services (dba Binance US) and BAM Management US Holdings also seek to dismiss the SEC’s charges against them. The SEC filed a lawsuit against Binance entities and CZ on June 5. In the lawsuit, the securities regulator identified 12 crypto tokens as securities.
Do you think the court should dismiss the SEC lawsuit against Binance and CZ? Let us know in the comments section below.
Cameron Winklevoss Criticizes SEC Regulatory Approach: ‘Securities Laws Written in 1933 Don’t Meet the Realities of the World Today’
Cameron Winklevoss, a co-founder of Gemini, a U.S.-based cryptocurrency exchange, criticized the U.S. Securities and Exchange Commission’s (SEC) posture regarding cryptocurrency regulation. Winklevoss stated that the SEC laws written in 1933 are obsolete today, and their application would mean that the crypto industry will leave the U.S. behind.
Cameron Winklevoss Believes SEC Securities Laws Are Too Outdated to Deal With Crypto
Cameron Winklevoss, a co-founder of Gemini, a U.S.-based cryptocurrency exchange, has criticized the U.S. Securities and Exchange Commission’s application of the Securities Act of 1933 in cryptocurrency cases.
According to Winklevoss, the Securities Act, written in 1933 and still commonly used to determine if an asset constitutes a security at any given time, is outdated and not workable in today’s crypto paradigm.
Winklevoss stated:
Everyone including the SEC knows that securities laws written in 1933 don’t meet the realities of the world today. There are two choices: Update the law taking a first principles approach or be left behind.
Furthermore, Winklevoss compared regular mail with email, remarking on the differences between the two and how equivalent regulation would have slowed down the internet’s development and adoption.
On taking the same approach with crypto, he declared:
You can’t pretend that crypto is an orange grove and expect it to flourish. Unless of course, your goal is to kill it.
The SEC filed a complaint against Gemini in January, alleging the exchange engaged in an unregistered offer and sale of securities to U.S. retail investors. The case involves Genesis, a cryptocurrency lender that filed for bankruptcy in January.
Pushing the Industry Away From the U.S.
Winklevoss joins a group of cryptocurrency entrepreneurs and lawmakers that have repeatedly warned against the effects that the recent barrage of legal actions against exchanges like Coinbase and Binance will have on the future of the industry in the country.
He explained what he thinks the industry will go through if the SEC doesn’t change its enforcement approach. Winklevoss explained:
What does being left behind mean? Industry moves offshore. Brain drain. Lost jobs. Lost economic growth. National security risk. U.S. does not participate in developing future financial rails.
Brian Armstrong, CEO of Coinbase, has also declared that the direction in which regulation is going in the U.S. might drive innovation offshore while other countries like China are embracing crypto and blockchain.
What do you think about Cameron Winklevoss’ opinions on the SEC’s regulatory approach? Tell us in the comment section below.
Binance Faces Legal Action by SEC for Violating US Securities Laws
The U.S. Securities and Exchange Commission (SEC) took legal action against Binance, the largest cryptocurrency exchange globally, for violating U.S. securities laws. Gary Gensler, the chairman of the SEC, revealed that Binance is facing thirteen charges related to these violations.
Binance Hit With SEC Lawsuit Over Alleged Violations of U.S. Securities Laws
faces another lawsuit as the U.S. Securities and Exchange Commission (SEC) files a case in the District of Columbia. This comes after the U.S. Commodity Futures Trading Commission (CFTC) sued Binance in late March. A press release confirms the involvement of Binance CEO Changpeng Zhao (CZ) as a defendant in the lawsuit.
Binance faces multiple securities violations as charged by the regulator, alleging that the exchange clandestinely permitted “high-value U.S. customers” to utilize the international cryptocurrency trading platform. On Monday, SEC Chairman Gary Gensler disclosed that Binance stands accused of 13 distinct charges. Furthermore, the SEC alleges that Binance commingled customer assets.
“Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” Gensler detailed. “As alleged, Zhao and Binance misled investors about their risk controls and corrupted trading volumes while actively concealing who was operating the platform, the manipulative trading of its affiliated market maker, and even where and with whom investor funds and crypto assets were custodied.”
Gensler added:
The public should beware of investing any of their hard-earned assets with or on these unlawful platforms.
Following the news, various cryptocurrency assets experienced a decline in value, with BTC and ETH registering a 2.5% decrease in the past 24 hours. Numerous other digital currencies faced even more substantial losses.
In the meantime, the SEC complaint asserts that Binance and CZ displayed a “blatant disregard” for U.S. securities laws, which encompasses operating an unregistered exchange, brokerage, and clearing house. It also involved enabling individuals to trade unregistered securities, including BNB and BUSD.
After the complaint was released CZ responded. “Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits,” CZ said. “We will issue a response once we see the complaint. Haven’t seen it yet. Media gets the info before we do.”
What do you think about the SEC lawsuit against Binance? Share your thoughts and opinions about this subject in the comments section below.
Russia to Enact Laws to Regulate Crypto Exchange Action; Profiles Use of Cryptocurrency to Bypass Sanctions
The government of Russia is preparing to regulate the establishment and action of crypto exchanges, abandoning its earlier proposal of the creation of a unique national platform. Anatoly Aksakov, head of the Russian State Duma Financial Markets Committee, stated that crypto exchanges could help Russia to bypass sanctions by using crypto to settle international payments.
Russia to Enact Cryptocurrency Exchange Rules Soon
The government of Russia will focus on establishing a framework to regulate the establishment and action of crypto exchanges, according to recent statements of Anatoly Aksakov, head of the Russian State Duma Financial Markets Committee. The legislative body abandoned the earlier proposal of creating a unique national cryptocurrency exchange.
The proposal of a unique exchange presents a fundamental flaw: it might be targeted by Western sanctions at some time in the future, Aksakov explained.
In a recent interview on Izvestia, a Russian magazine, Aksakov explained:
Exchanges will be used for cross-border settlements, including bypassing sanctions restrictions, so new restrictions may be introduced against them. At the same time, other organizations will constantly be able to appear.
The idea of a unique cryptocurrency exchange was also rejected by the Ministry of Finance of Russia. Ivan Chebeskov, director of the financial policy department of the Ministry of Finance of the Russian Federation, favored the establishment of comprehensive rules for cryptocurrency exchanges instead.
Profiling Exchanges to Bypass Sanctions
Russian officials have also clearly stated that one of the functions of these exchanges might be to facilitate the payment of imports and bypass the Western economic sanctions enacted against Russia as a consequence of the Russia-Ukraine conflict.
Alexei Guznov, deputy chairman of the Bank of Russia, stated:
Most likely, these will be organizations that will help in the interaction between exporters and importers and in cross-border settlements in digital currencies. Through them, Russian companies will be able to pay, for example, for parallel imports.
Other sources also reinforce the possibility that regulating these cryptocurrency exchanges might bring to the Russian financial system. Alexey Tarapovsky, the founder of Anderida Financial Group, told Izveztia that Western businesses are very interested in making these kinds of payments, already processing about billion in digital currencies each year.
Tarapovsky declared:
Such platforms will help national companies conduct international settlements with crypto against the backdrop of sanctions.
On May 19, Aksakov also stated that the digital ruble law was likely to be passed in June after being approved in its first discussion.
What do you think about the usage of crypto to bypass economic sanctions? Tell us in the comments section below