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CFTC Pushed By Coinbase To Match US SEC’s Document Disclosure

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5 hours ago

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Coinbase has filed a motion to compel the U.S. Commodity Futures Trading Commission (CFTC) to produce communications with issuers of 12 tokens named in a related lawsuit brought by the Securities and Exchange Commission (SEC). 

The cryptocurrency exchange wants this information to help it in a lawsuit that is ongoing in the Southern District of New York (SDNY). This follows a previous order by the court to the SEC to produce similar documents that Coinbase has said are crucial for the case.

Coinbase Seeks CFTC Compliance Following SEC Lawsuit

Coinbase’s motion comes after a court ordered the SEC to produce records of communications between the US SEC and the issuers of the 12 tokens in question. The SEC has accused Coinbase of listing these tokens without meeting the necessary requirements to be a securities exchange and states that the assets are unregistered securities under the Howey Test. 

According to the exchanges CLO Paul Grewal, they disputes this, saying that the Commodity Futures Trading Commission has also been in touch with the token issuers and that these documents may be relevant to deciding whether the assets are investment contracts.

Consequently, the exchange wants the same cooperation from the CFTC, referring it to their defense. According to Coinbase, these communications are important for understanding the development, use, and functionality of the tokens, which are important factors for determining whether they are securities.

During this move, the cryptocurrency exchange has requested the SEC to issue a clear legal framework for digital assets stating that the current securities laws are not applicable to the crypto space.

CFTC Faces Pushback After Refusing to Comply

Coinbase’s latest legal action against the Commodity Futures Trading Commission is in response to the agency’s failure to honor a subpoena that was issued in June 2024. The subpoena sought information on documents and communication between the Commodity Futures Trading Commission and the issuers of the 12 tokens named in relation to the tokens. 

According to Coinbase, such information from the third parties is critical to its defense and may shed light on whether the tokens are securities as per the CFTC’s communications with them.

Despite the exchange’s efforts to narrow the scope of its request, the CFTC has resisted, citing concerns about relevance, burden, and privilege. The agency has yet to conduct any searches for the requested documents. Coinbase, as a result, pushed back, offering to cover the costs of searching and reviewing the materials, and arguing that the burden on the CFTC is reasonable given the significance of the case.

In the midst of its ongoing legal challenges, the exchange announced a scheduled system upgrade that will temporarily affect its platform. The upgrade is planned for Saturday and several services, including Simple and Advanced Trade, will be unavailable among others.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

Donald Trump Win Key For XRP & Solana ETFs, Bloomberg Analyst

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1 hour ago

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October 2, 2024

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Bloomberg analyst Eric Balchunas has hinted that a potential Donald Trump victory in the upcoming U.S. presidential election could influence the fate of XRP and Solana ETFs. 

This comment follows Bitwise’s recent steps toward creating an XRP ETF by registering a trust entity in Delaware. Concurrently, it is ahead of the U.S. Securities and Exchange Commission’s (SEC) deadline to appeal Judge Torres’ ruling that secondary sales of XRP on exchanges are not securities.

Donald Trump Win Key For XRP, Solana ETFs

In the recent thread on X (previously Twitter), Bloomberg analyst Eric Balchunas pointed out that under the current regulation, led by the SEC Chairman Gary Gensler, it has become difficult to approve the new cryptocurrency ETFs, such as the one for SOL and XRP. He pointed out that Gary Gensler has taken a strict stance towards the crypto market and this has affected big players such as Binance and Coinbase.

But Balchunas has pointed out that former president Donald Trump’s win could result in Gensler being replaced, paving the way for softer rules that would enable approval of ETFs for such altcoins as Solana and XRP. Balchunas compared the situation to a “Trump Call,” meaning that those who applied for XRP or Solana ETFs are more or less betting on Trump’s win, hoping that his administration would select a new chair of the SEC who might be more willing to approve such funds.

He predicts that if Kamala Harris beats Donald Trump, there will be no changes to the existing regulation and thus any possibilities for these ETFs would be lost and the “call” on these filings would be useless. However, with Kamala Harris recent shift in stance and pledge to maintain the US dominance in Blockchain and AI, some hope may linger for a potential approval of the ETFs. Moreover, Anthony Scaramucci confirmed that the Vice President is developing crypto policies which aligns with recent calls for a crypto roundtable by a group of DeFi leaders.

Bitwise Takes Steps Toward XRP ETF

Bitwise has taken a big step towards listing an XRP ETF by registering a trust entity in Delaware. This comes in the wake of other applications from other big investment firms including BlackRock and Fidelity who had earlier submitted applications for Bitcoin and Ether ETFs.

Despite the recent developments, the likelihood of being approved remains uncertain. Moreover, the SEC has until October 7, 2024, to appeal Judge Torres’ July ruling, which determined that secondary sales of XRP on exchanges were not classified as securities. Despite this, many experts, including former SEC officials, expect the agency to appeal the decision, further delaying any progress on an XRP ETF hence downplaying the Donald Trump effect.

Should the SEC opt to appeal, most analysts, including Alex Thorn, of Intangible Coins, believe that the chances of the XRP ETF getting approval would be slim to zero.

Solana ETF Faces Similar Challenges

The Solana ETF, like the XRP ETF, faces a tough path ahead under the current SEC administration. Despite the demand for such investment vehicles, the SEC has been reluctant to approve additional cryptocurrency-based ETFs, even after approving spot Bitcoin and Ethereum ETFs. The president of The ETF Store, Nate Geraci, has stated that under the current administration, the chances of a Solana ETF being approved within the next year or two remain slim.

In Brazil, however, two spot Solana ETFs have already been approved, further highlighting the disparity in regulatory approaches between different jurisdictions. 

Similarly, Geraci also pointed out that the political environment could be the key to the approval of these ETFs, especially the result of the 2024 U.S. presidential election. If the former president Donald Trump becomes the president, it may lead to the change in the leadership of the SEC, which in its turn, may lead to more tolerant crypto regulations. On the other hand, Geraci says that if Kamala Harris were to win the presidency, there is no change in the current situation, and the approval of Solana and XRP ETFs would remain highly unlikely.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Kamala Harris Urged To Host Crypto Policy Roundtable In October

Published

9 hours ago

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October 1, 2024

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Vice President Kamala Harris’ campaign team has been sent a letter by a group of Web3 and decentralized finance (DeFi) leaders requesting a meeting. They are looking to debate on measures that can foster innovation in the US blockchain and cryptocurrency markets without leaving anyone behind.

The letter, sent on Tuesday, was signed by more than 20 members of the crypto industry such as Cleve Mesidor of the National Policy Network WOC Blockchain and Olayinka Odeniran of the Black Women Blockchain Council. The signers stressed the importance of policies that enable all kinds of creators and guarantee that US continues to dominate the Web3 frontier.

Kamala Harris Urged To Host Crypto Policy Roundtable

In their letter, the group urged the Kamala Harris-Walz campaign to participate in a conversation on the parameters for a regulatory environment that would enable such innovation in Web3 and DeFi.

They called for the establishment of rules that can support consumer protection and at the same time foster financial access and capital accumulation.

The leaders complained that the current policies put in place have made it hard for the vulnerable groups to get into cryptocurrencies. The signers noted that people of color including the black, Latino, Asian American and Indigenous are the early adopters of crypto but are still excluded from the traditional financial system.

Concurrently, they demanded for an inclusion of their voices in the policy making process so as to be part of the decision making forum.

“We want a seat at the policy table and a say in the regulatory debate,” they wrote.

This Is A Breaking News, Please Check Back For More

 

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

Gemini announces exit from the Canadian market

Published

18 hours ago

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October 1, 2024

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Gemini announces exit from the Canadian market
  • Gemini exits Canadian market, citing strict regulations and compliance costs.
  • Users must withdraw funds by Dec. 31 as all accounts will close by that date.
  • Canada’s new crypto rules, set for 2026, further restrict decentralized markets.

Crypto exchange Gemini has become the latest platform to withdraw from the Canadian market, following in the footsteps of major players like Binance, OKX, dYdX, and Bybit.

Gemini’s departure highlights the challenges that crypto companies face in navigating Canada’s increasingly stringent regulatory landscape.

The exchange’s decision marks a significant shift, as Gemini had previously described Canada as a critical part of its international expansion strategy.

Why are crypto platforms exiting Canada?

Gemini’s move follows a broader trend of crypto platforms exiting Canada due to rising compliance costs and complex regulatory hurdles.

Canadian authorities have been tightening their grip on the crypto market since February 2023, when the Canadian Securities Administrators (CSA) required all crypto exchanges operating in the country to sign legally binding pre-registration agreements. These agreements came on top of existing restrictions, such as the prohibition of margin trading for Canadian users and limitations on offering stablecoins, which many exchanges found challenging to adhere to.

Though Gemini initially complied with the new regulations by submitting a pre-registration undertaking in April 2023, the evolving regulatory climate has proven too burdensome. The exchange’s exit echoes that of Binance and OKX, which similarly cited the high cost and complexity of complying with Canada’s increasingly restrictive rules.

Looking ahead, the regulatory environment for crypto in Canada is set to become even more stringent. In April 2024, the Canadian government introduced the Crypto-Asset Reporting Framework, which will come into effect in 2026.

This framework will require crypto service providers to report detailed transaction data annually, including sensitive client information such as residential addresses and taxpayer identification numbers.

Gemini Canadian users have 90 days to withdraw funds

Gemini issued a formal notice to its Canadian users on September 30, urging them to withdraw their assets by December 31, 2024.

The Winklevoss-founded exchange has provided customers with a 90-day window to move both their cryptocurrency holdings and fiat balances before all Canadian accounts are closed.

As Gemini bows out, Canadian users are left with fewer options to access decentralized markets, while global exchanges like Coinbase, Kraken, and Crypto.com continue to operate within the country’s borders.

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