All articles tagged with #cryptocurrency regulations
Major US banks like Bank of America and Citibank are planning to launch stablecoins amid evolving crypto-friendly regulations, with Bank of America working on a stablecoin and others monitoring developments, signaling increased institutional interest in digital assets.
New York Attorney General Letitia James has expanded the fraud lawsuit against Digital Currency Group (DCG) and Gemini, now claiming they are responsible for $3 billion in investor losses tied to the defunct Gemini Earn program and direct investments with Genesis. The companies are accused of misleading investors and assuring them of the safety of their money, despite allegedly being aware of impending financial doom. The lawsuit has been expanded to include more investors who reported similar harm, prompting calls for stronger cryptocurrency regulations. DCG has responded by accusing the attorney general of seeking press attention and has vowed to fight the claims aggressively.
The US government has removed two provisions from the National Defense Authorization Act (NDAA) that aimed to address anti-money laundering (AML) concerns related to cryptocurrency. The provisions included the establishment of a review system for crypto activities and combating anonymous crypto transactions. The removal of these provisions comes amidst ongoing discussions and deliberations on money laundering and terrorist financing facilitated through cryptocurrencies.
South Korea, Singapore, and Thailand have introduced new rules and regulations for cryptocurrency exchanges, focusing on investor protection and clarity. In contrast, the United States is experiencing regulatory uncertainty and political battles over how to manage the cryptocurrency industry. While some Asian countries are adapting to innovation and attracting crypto companies, the US is struggling to apply outdated frameworks to new financial technology. The US Congress has yet to pass substantial legislation in this area, leaving the courts to interpret digital assets within existing legal frameworks. The US Securities and Exchange Commission (SEC) has faced criticism but is seen by some as fulfilling its fiduciary responsibility to protect investors.
Coinbase CEO Brian Armstrong has hit back at SEC Chair Gary Gensler over the agency's lawsuit against the crypto exchange, calling him an "outlier," while reassuring customers that their funds were safe. The SEC has alleged that Coinbase traded at least 13 crypto assets that are securities that should have been registered, including tokens such as Solana, Cardano, and Polygon. Armstrong has been an outspoken critic of the SEC and has led a push in Washington for clearer crypto rules. Coinbase has been pushing the SEC to formulate new crypto-specific regulations since last year and in April asked the U.S. Court of Appeals for the Third Circuit to compel the regulator to respond.
Ripple and the SEC have filed a joint letter requesting a one-week extension until June 13 to file public, redacted versions of cross-motions for summary judgment and accompanying exhibits, which includes the Hinman materials. The Hinman documents relate to a speech given in 2018 by former SEC director Bill Hinman, in which he expressed the view that Ether should not be classified as a security. Some members of the crypto community find the joint petition to be "weird." Meanwhile, Ripple CEO Brad Garlinghouse has stated that the ambiguous regulations in the US are likely to drive more cryptocurrency companies to relocate outside the country.
Bitcoin's price dropped below $27,000 after the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its founder Changpeng Zhao over allegations that the exchange knowingly offered unregistered crypto derivatives products in the U.S. The lawsuit caught traders off-guard, causing them to liquidate $39 million worth of BTC's long positions. The regulatory unclarity is a "concerning" factor for moving the markets, especially the specific allegations contained within the CFTC suit. Some crypto-related stocks also dropped, including Coinbase and Marathon Digital Holdings.