All articles tagged with #crypto assets
The SEC staff issued a statement clarifying how broker-dealers can demonstrate possession of crypto asset securities under Rule 15c3-3, emphasizing measures like access, assessment of blockchain technology, security protocols, and contingency planning to ensure custody and control, while noting that this guidance does not create new legal obligations.
The Division of Investment Management clarified that, under specific conditions, a State Trust Company can be treated as a 'bank' for custody of Crypto Assets and related cash or equivalents, provided it meets certain regulatory and operational standards, and the investment adviser or fund conducts due diligence and maintains proper agreements and disclosures.
Nakamoto CEO David Bailey criticizes the confusing narrative around 'failed altcoins' in treasury strategies, emphasizing the importance of building and monetizing balance sheets with Bitcoin and other crypto assets, amid growing diversification beyond Bitcoin in corporate treasuries and concerns about the sector's stability.
The SEC's Spring 2025 Regulatory Agenda emphasizes supporting innovation, clarifying crypto asset regulations, reducing compliance burdens, modernizing rules, and rethinking the Consolidated Audit Trail, reflecting a focus on smart, effective regulation.
The SEC's Division of Corporation Finance clarifies that Protocol Staking activities involving crypto assets on proof-of-stake networks do not constitute securities offerings, covering activities like self-staking, custodial staking, and ancillary services, as they are considered administrative or ministerial rather than entrepreneurial or managerial efforts.
President Biden has vetoed H.J.Res. 109, a resolution that would disapprove of the SEC's Staff Accounting Bulletin No. 121, which addresses the accounting obligations of firms safeguarding crypto-assets. Biden argues that the resolution would undermine the SEC's authority and jeopardize consumer and investor protections. He emphasizes the need for appropriate regulatory guardrails to support the responsible development of digital assets.
OpenAI launches Sora, a text-to-video AI model, causing a surge in AI-related crypto assets Livepeer (LPT) and SingularityNET (AGIX). Both assets have since retraced but are trading higher. Livepeer aims to integrate text-to-video technology into its network as part of its AI Video initiative in the coming months, providing affordable and open access to developers and creators.
The launch of Bitcoin ETFs has garnered significant attention and investment, with $4 billion in assets gathered in the first six days. However, the subsequent sell-off in Bitcoin and related companies has raised questions about the impact on publicly traded companies with exposure to crypto-assets. The ETFs provide investors with more options, prompting a closer evaluation of these companies based on their business merits rather than just their correlation to Bitcoin's price. Coinbase may face challenges with potential revenue impact, while Bitcoin miners are encountering headwinds such as increased network security and the upcoming halving. Despite short-term volatility, the ETF launch signifies a maturing crypto industry with increased investor choice and a focus on profitable operations.
FTX debtors have proposed a revised Chapter 11 reorganization plan, stating that the value of customer asset claims will be retroactively set to the time of the exchange's collapse in November 2022. The valuation will be based on the petition date, using conversion rates specified in a conversion table. However, since the bankruptcy filing, there has been a significant rise in crypto prices. Meanwhile, the FTX 2.0 Customer Ad Hoc Committee has proposed revisions to the reorganization plan to maintain a balance among stakeholder interests. There has also been scrutiny of the activities of crypto assets associated with FTX and Alameda Research, with reports of digital asset transfers worth $23.59 million to multiple crypto exchanges.
European Central Bank President Christine Lagarde admitted that her son lost "almost all" of his investments in crypto assets, despite her warnings against them. Lagarde has been critical of cryptocurrencies, considering them speculative and often used for illicit activities. The ECB has called for global regulation of crypto assets to protect consumers and prevent funding for terrorists or money laundering. The bank is currently in the preparation phase for its own digital euro project, but it will take another two years before a decision is made on its rollout. Lagarde emphasized her low opinion of cryptocurrencies and the need to prevent participation in criminal activities.
In a speech at the 2023 Securities Enforcement Forum, the Chair of the Securities and Exchange Commission (SEC) emphasized the agency's commitment to combatting fraud and misconduct in the securities markets. The Chair highlighted the importance of economic realities in enforcing securities laws, stating that most crypto assets likely meet the definition of an investment contract and are subject to regulation. The SEC's enforcement program focuses on five themes: economic realities, accountability, high-impact cases, process, and positions of trust. The Chair also emphasized the need for cooperation, fairness, and holding individuals and firms accountable to maintain trust in the markets.
The launch of Shibarium, a project by Shiba Inu, faced challenges as bridging issues resulted in $2.5 million worth of assets being trapped on-chain. The project's lead developer claims 'funds are safu' and denied any bridge-related issues. However, blockchain data and the inaccessibility of the blockchain scanner raise doubts about the network's stability. Both SHIB and BONE tokens have dropped by over 15% in the last 24 hours.
Crypto asset trading platform Bittrex Inc. and its former CEO, William Shihara, have agreed to settle charges with the Securities and Exchange Commission (SEC) for operating an unregistered national securities exchange, broker, and clearing agency. Bittrex's foreign affiliate, Bittrex Global GmbH, also settled charges for failing to register as a national securities exchange. The SEC alleged that Bittrex provided services to U.S. investors in connection with crypto assets that were offered and sold as securities, and that Shihara directed issuers to remove certain statements that could trigger regulatory scrutiny. As part of the settlement, Bittrex and Shihara will pay a total of $24 million in disgorgement, prejudgment interest, and civil penalties.
The Financial Stability Board (FSB) has called for tougher global regulations on cryptocurrencies to safeguard client assets and prevent conflicts of interest. The FSB's recommendations aim to address the alleged bad behavior and volatility in the crypto sector, with a focus on separating activities and functions of major crypto conglomerates. The FSB cited recent incidents involving companies like FTX and Celsius as examples of the need for stricter rules. Different global approaches to crypto regulation exist, with the EU crafting tailored laws and the US seeking to apply existing rules. The FSB's recommendations aim to provide a flexible framework that encourages compliance while not stifling innovation.
The European Union has reached a political agreement on new regulations for crypto assets as part of changes to the Capital Requirements Regulation and Directive. The rules aim to prevent unbacked cryptocurrencies from infiltrating the traditional financial system and boost the strength and resilience of banks operating in the EU. The agreement includes a transitional prudential regime for crypto assets, with details yet to be disclosed. The final text will be issued alongside new banking rules by the Basel Committee on Banking Supervision, with implementation expected by January 2025.