The approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. SEC is expected to create momentum for similar regulatory approvals in Asia, with analysts optimistic about the potential for countries like Australia to be among the first to approve such products. While Hong Kong, Singapore, and the UAE have shown interest in becoming crypto hubs, they have not yet seen bitcoin ETFs in their regions. The U.S. approval could prompt these jurisdictions to expedite their regulatory processes for bitcoin ETFs, with Australia leading the way for potential approval in the first or second quarter of 2024.
The US Securities and Exchange Commission (SEC) has approved new rules aimed at increasing transparency in short selling, requiring investors to report their short positions to the agency and companies that lend out shares to report the activity to the Financial Industry Regulatory Authority (FINRA). Short selling, the practice of betting against stocks, has drawn renewed scrutiny following the GameStop saga, where retail investors drove up the price of shares, causing heavy losses for hedge funds. The SEC's new rules aim to enhance its ability to police short selling and will require institutional investors to report gross short positions monthly and certain "net" short activity for individual trade settlement dates. FINRA will publish most of the reported data on an aggregate anonymized basis, with a 20-business-day delay for loan amounts.
A third-party entity called Eeon has filed a motion to intervene in the US Securities and Exchange Commission (SEC) lawsuit against Binance and its CEO, CZ, on behalf of customers. Eeon argues that the SEC and Binance attorneys have not represented the interests of customers and claims that cryptocurrencies are commodities, not securities. The entity also accuses Binance of blocking access to customers' crypto assets and requests the court to allow customers access to their frozen funds. In a counterclaim, Eeon asks for damages from Binance and the SEC and proposes that they share equal responsibility for paying penalties.
The US Supreme Court will hear its first-ever crypto-related case on March 22, 2023, amid the ongoing banking crisis in the country. Coinbase, the US's biggest crypto exchange, is already dealing with a probe launched by the US SEC for trading securities over its platform. The exchange is trying to send the argument to arbitration, and XRP holders' lawyer has predicted that Coinbase might score a win here regarding its user agreement, which requires the customer to agree to binding arbitration.
