Regulation
Acting SEC Chair Uyeda announces new crypto task force
- SEC acting chair Mark Uyeda has announced a crypto task force dubbed “SEC Crypto 2.0”
- The task force will look to establish a clear regulatory framework for cryptocurrencies.
- SEC Commissioner Hester Peirce will lead this task force.
The US Securities and Exchange Commission has announced the formation of a new crypto task force.
Acting SEC Chair Mark Uyeda launched the “SEC Crypto 2.0”, a task force the agency says will be “dedicated to developing a comprehensive and clear regulatory framework for crypto assets.”
The announcement comes days after it emerged the agency was looking for a crypto regulatoy approach reboot under President Donald Trump.
SEC acting chair forms crypto task force
According to a press release the regulatory published on Jan. 21, Commissioner Hester Peirce is set to lead the new task force. Crypto 2.0 aims at offering a path to regulatory clarity for the crypto industry, the SEC said in the release.
“To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way. Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive,” the statement reads in part.
SEC plans to coordinate with other federal agencies, including the Commodity Futures Trading Commission (CFTC). Collaboration will also involve both state and international counterparts.
“This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation,” Commissioner Peirce stated.
SEC’s move comes a day after former chair Gary Gensler exited following his resignation. President Donald Trump appointed Uyeda the acting chair.
With Gensler heavily criticised for the commission’s regulation by enforcement approach and a lack of clear path to registration for crypto companies, the main goal of the task force is to clear the confusion. It will also help put in place “sensible disclosure frameworks” with the SEC eyeing public input on this. The Peirce-led team will also undertake roundtable meetings.
Nasdaq has submitted a 19b-4 form to the U.S. Securities and Exchange Commission (SEC) for the proposed Canary Litecoin ETF. This filing, made on behalf of Canary Capital, starts the official review process for the approval of a spot Litecoin exchange-traded fund (ETF).
The submission is a crucial step in the regulatory process and could pave the way for Litecoin to join Bitcoin and Ethereum as the next cryptocurrency with an approved ETF in the United States.
Nasdaq Files 19b-4 for Canary Litecoin ETF
The 19b-4 form was filed by Nasdaq on January 16 while Canary Capital had submitted an amended S-1 filing earlier in the week. These two filings thus address all the essential elements the SEC considers while evaluating the ETF proposal.
As stated in the submission, U.S. Bancorp Fund Services, LLC will perform the function of the fund administrator and U.S. Bank N.A will oversee the cash of the ETF. Coinbase Custody Trust Company LLC will act as the custodian of the Litecoin of the fund.
The 19b-4 filing is the first official step that exchange agencies take to receive the SEC’s stamp of approval on ETFs. This filing thus begins the formal 240-day period within which the SEC can either approve the application, reject it, or ask for more information.
Bloomberg Senior ETF Analyst Eric Balchunas termed the filing as a “positive signal” in a recent post in X, which indicates that Litecoin might be the next cryptocurrency to get the green signal for a spot ETF.
Litecoin Price Rallies as SEC Prepares for Change
The filing occurs at a time when the SEC is in the process of changing leadership under the new government under President-elect Donald Trump. Former SEC Commissioner Paul Atkins who has been an advocate for cryptocurrencies has been recommended for the position following Gensler’s exit. This shift in leadership can be an opportunity for a more positive approach to cryptocurrency ETFs, according to industry experts.
Balchunas noted the change of leadership and said that it is a “huge variable” in the approval of Litecoin and other ETFs. Canary Capital has been in the process of seeking approval of Litecoin ETF since October 2024 and in the process of addressing the regulatory issues in its filings.
When the news broke, the cryptocurrency market gave a positive reaction, especially to Litecoin, which surged more than 15% within 24 hours. On-chain analytics firm Santiment revealed that large investors with holdings of over 10,000 LTC scooped up an additional 250,000 LTC over the last week, thus fuelling market sentiment in favor of Litecoin.
Competition Among Spot Crypto ETFs Intensifies
As Litecoin is moving forward in the ETF race, other cryptocurrencies like Solana and XRP are not far behind in the race. Solana is currently leading in the race, with several companies, including VanEck, Grayscale, and Bitwise, having submitted 19b-4 forms for spot Solana ETFs as early as November 2024.
Grayscale’s Solana ETF is expected to get a preliminary nod from the SEC by January 23, while other Solana ETFs are set to have their filings due later this month.
The applications for Ripple’s XRP ETFs are also pending with WisdomTree, Bitwise, 21Shares, and Canary Capital among others. If approved, Solana and XRP ETFs are expected to lure investments of up to $14 billion in their first year of operation, according to the experts.
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.
Senator Cynthia Lummis has issued a warning to the Federal Deposit Insurance Corporation (FDIC) regarding allegations of document destruction related to “Operation Choke Point 2.0” (OCP 2.0). Whistleblowers have accused the agency of withholding and destroying materials tied to the alleged anti-crypto campaign. This has intensified scrutiny over the Federal Deposit Insurance Corporation’s practices.
Senator Cynthia Lummis Demands FDIC Preserve Documents Tied To OCP 2.0
In a letter dated January 16, 2025, Senator Cynthia Lummis addressed FDIC Chair Marty Gruenberg, demanding immediate action to preserve all documents linked to OCP 2.0. The initiative allegedly involved a multi-agency effort to limit crypto businesses’ access to banking services.
The pro-crypto Lummis warned that any destruction of these documents or retaliation against whistleblowers could result in criminal referrals to the Department of Justice. She emphasized that obstructing Senate oversight is illegal and unacceptable. The letter also referenced whistleblower claims that staff access to these materials is being closely monitored to prevent disclosure.
Addressing, Marty Gruenberg, the FDIC Chair, pro-crypto Senator Cynthia Lummis added,
“This is illegal and unacceptable. You are directed to ensure your staff cease and desist destruction of all materials and end all retaliatory actions immediately.”
Moreover, this warning comes amid reports that Donald Trump’s advisory team, including Elon Musk, is considering eliminating the FDIC as part of a banking sector overhaul. The proposed changes include merging the FDIC, OCC, and Federal Reserve’s nonmonetary functions to streamline regulation. Advisors have also floated the idea of transferring deposit insurance responsibilities to the Treasury Department.
Whistleblower Allegations and FDIC Compliance Issues
Whistleblowers allege that FDIC management has taken steps to prevent the release of critical information tied to OCP 2.0. These efforts reportedly include threats of legal action against staff who speak out and deliberate attempts to destroy key documents.
The controversy extends to the wind-down of Signature Bank and Silvergate Bank, two institutions with strong ties to the crypto industry. These closures have been central to ongoing investigations into the broader crackdown on crypto businesses.
Notably, the pro-crypto Senator Cynthia Lummis recently probed the U.S. Marshals over their proposed plans to sell seized Bitcoin. Lummis flagged concerns about the timing of the sale, citing its contradiction with President-elect Donald Trump’s Bitcoin Reserve agenda.
Scott Bessent Opposes CBDC Amid Crypto Debate
Meanwhile, Scott Bessent, President Donald Trump’s Treasury pick, has voiced opposition to the creation of a U.S. central bank digital currency (CBDC). In a recent Senate hearing, Bessent argued that the U.S. dollar already provides secure investment alternatives, making a CBDC unnecessary.
President @realDonaldTrump’s nominee for Treasury Secretary, Scott Bessent: “On CBDC’s, I see no reason for the U.S. to have a central bank digital currency.”
Agreed. Now let’s make sure it’s in law. pic.twitter.com/HaVD9Wjlkc
— Tom Emmer (@GOPMajorityWhip) January 16, 2025
Bessent’s stance aligns with Trump’s broader support for Bitcoin and skepticism of foreign CBDCs. He emphasized that Bitcoin mining safeguards against other nations’ adoption of centralized digital currencies. This reinforces Trump’s pro-crypto policies and highlights the administration’s preference for decentralized financial systems.
Nonetheless, most recently, Trump’s Treasury nominee Scott Bessent faced scrutiny from Senator Elizabeth Warren before his Senate Finance Committee confirmation hearing. Warren’s 31-page letter questions Bessent’s views on crypto regulation, including the potential authority of OFAC over stablecoins to combat risks like money laundering.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
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.
Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has strongly refuted recent rumors regarding the company and its executives. The rumors suggested that former President Donald Trump criticized Ripple for alleged financial support of Kamala Harris during a past election. Alderoty dismissed the claims as baseless and entirely fabricated, taking to Twitter to call out the reports as “pure fiction.”
Ripple CLO Refutes Claims of Political Allegations
Rumors have started to surface following a report made by Unchained, which stated that insiders said that Ripple had a conversation with Trump during which he allegedly bashed the company. In the report, Trump claimed that Ripple did not support his administration at a crucial time and highlighted that Chris Larsen, the co-founder of Ripple, had donated to PACs backing Kamala Harris.
The report further suggested that Ripple may have influenced another rumor published by the New York Post. The rumor claimed Trump was open to including non-Bitcoin, American cryptocurrencies, such as XRP, in a national reserve. XRP, Ripple’s native token, experienced a significant price surge following the report, reaching a seven-year high of $3.40.
Ripple’s chief legal officer, Stuart Alderoty quickly fired back at the allegations on social media and questioned the origins of the information from the unnamed sources. “The rumors published by this third-tier crypto rag are pure fiction. Completely made up,” Alderoty wrote on X.
John Deaton Criticizes Speculative Reporting
Like Ripple CLO, Prominent attorney John Deaton, who has been a vocal figure in the XRP community, also criticized the speculative reporting. Deaton questioned the reliability of unnamed sources and emphasized the importance of evidence-based claims.
As Deaton took to X to express his opinions he wrote,
” Let me get this straight, a person who was not at the meeting told another person that they were guessing what may have been said at the meeting?” This is why we have rules of evidence in Court.”
Deaton also pointed to the dangers of “tribalism” within the crypto sector, which is often characterized by groups that try to spread fear, uncertainty, and doubt (FUD) about other projects. According to him, the recent market performance of XRP which has been performing better than Bitcoin among other cryptocurrencies was likely to raise eyebrows.
XRP Price Hits 7 Year High Amid Controversy
The speculation was made at the same time of the unprecedented increase of XRP usage having hit more than 2,365 $100K transactions. Concurrently, XRP price has increased by more than 10% in the last 24 hours hitting a 7 year high due to speculations that the digital asset will be added to a US strategic digital assets reserve.
Other publications, including the New York Times, revealed that Ripple’s CEO, Brad Garlinghouse, had urged Trump to consider expanding such a reserve to include other cryptocurrencies besides Bitcoins. Despite these claims, no report could establish whether Trump had accepted the proposition or not.
Ripple’s representative, Susan Hendrick, has confirmed that Garlinghouse did reach out to the former president, but she denied that Ripple was behind the rumors of Trump supporting XRP. ‘All those allegations are lies,’ she told Unchained when confronted with the allegations.
The controversy arises at a time when Ripple is still in a legal tussle with the U.S Securities and Exchange Commission (SEC). The SEC recently filed an appeal of a 2023 decision by US District Judge Analisa Torres which found that XRP sales on cryptocurrency trading platforms did not constitute securities transactions.
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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