Regulation
Cynthia Lummis Calls for Clear Crypto Regulation After SEC Nod
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The U.S. Securities and Exchange Commission’s (SEC) approval of spot Ethereum ETF has stirred the cryptocurrency industry. Senator Cynthia Lummis (R-WY) urged Congress to establish a clear regulatory framework for the industry. This move signifies a growing acceptance of cryptocurrency as a legitimate asset class, emphasizing the need for Congressional action.
Cynthia Lummis Urges Crypto Regulation Post-SEC Approval
The SEC’s approval, announced yesterday, paves the way for several Ether-based ETFs on major U.S. exchanges. This follows the SEC’s January decision to allow spot Bitcoin ETFs. Analysts believe this could increase investor access and liquidity in the Ethereum market, particularly for institutional investors. Despite the positive news, Ethereum’s price dropped from $3,800 to $3,700, highlighting the market’s volatility.
Experts caution that the path to trading these ETFs could take several weeks as the SEC reviews individual applications. Concerns around market volatility and consumer protection remain, prompting Lummis’ call for Congressional action. It remains unclear when the Ether ETFs will begin trading, as further approvals from the SEC are required.
Industry experts have praised the SEC’s approval as a win for crypto. Coinbase Chief Legal Officer Paul Grewal stated that Ethereum is now effectively recognized as a commodity. This belief, long held by the crypto community, is supported by various regulatory bodies, including the Commodity Futures Trading Commission (CFTC) and federal court rulings. The SEC’s approval of Ethereum ETFs further solidifies this stance.
Sigel echoed Grewal’s sentiments, highlighting Ethereum’s decentralized nature as a key factor in its classification as a commodity. This recognition by regulatory bodies and the SEC’s approval signal a significant step for the crypto industry and marks an important moment for Ethereum’s legitimacy in the financial market.
ConsenSys Criticizes SEC Despite Ether ETF Approval
In related developments, ConsenSys has voiced concerns over the SEC’s regulatory practices despite welcoming the Ethereum ETF approval. The Ethereum developers expressed mixed reactions following the approval, with ConsenSys criticizing the regulatory watchdog. They argue that the SEC’s inconsistent regulatory approach signifies trouble in regulating digital assets.
ConsenSys further slammed the agency, stating that this move unfairly targets the cryptocurrency market while hindering innovation in the digital asset space. The company’s criticism highlights ongoing tensions between the crypto industry and regulatory bodies.
Also Read: Michael Saylor Dragged For Failed Spot Ethereum ETF Prediction
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.
Regulation
Binance’s Illegal Operations Highlighted in Court by Central Bank
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In a court hearing in Abuja, Nigerian authorities intensified their legal battle against the cryptocurrency exchange Binance. Central Bank officials testified that Binance operated without a license, which aligns with allegations of facilitating illegal transactions on its platform.
Binance Accused of Unlicensed Operations in Nigeria
Olubukola Akinwunmi, a key figure from Nigeria’s central bank, claimed Binance had no authority to enable cryptocurrency trades in Nigeria. The lack of a formal license emerged as a significant point during the court proceedings. The Economic and Financial Crimes Commission leveraged this point, underscoring potential legal violations by Binance.
Akinwunmi explained that Binance’s services equated to a money brokerage requiring specific regulatory approval. He highlighted the peer-to-peer platform’s ability to exchange naira for other fiat currencies. Such operations typically necessitate central bank authorization as a recognized exchange or a bureau de change.
Moreover, the central bank official criticized Binance for allowing pseudonymous trading on its platform. Despite Binance’s stringent identity verification measures for Nigerian users, these practices have been questioned. Binance mandates local banking details and government-issued IDs for Nigerian traders.
Also Read: Venezuela’s Digital Asset Remittances Hit Yearly $460 Million
Gambaryan’s Health Ignored by Nigerian Officials
Tigran Gambaryan, Binance’s US-based compliance executive, faces charges alongside the firm. Since his arrest in February, Gambaryan has been held at Kuje Prison and has encountered severe health issues, including malaria and pneumonia. His condition worsened, leading to a collapse at the trial’s outset in May.
Despite a judicial order for medical attention, prison officials delayed compliance, only conducting tests weeks later. The results have not been disclosed to Gambaryan’s defense team. This neglect sparked criticism from Justice Emeka Nwite, who admonished the prosecution and prison authorities for disregarding his directives.
Justice Nwite warned of consequences if the medical reports are not presented by the next court date, set for July 16. Meanwhile, prison officials have dismissed allegations of mistreatment, asserting that Gambaryan is not in a severe health condition. The ongoing trial has drawn attention to the broader implications of cryptocurrency regulation in Nigeria.
Following these legal challenges, Binance ceased its operations for Nigerian users, affecting an estimated 13 million customers. The sudden withdrawal has left many seeking alternative trading platforms.
Also Read: Multicoin Capital To Fund Crypto-Friendly US Candidates In Solana
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.
Regulation
FTX Founder Sam Bankman-Fried’s Family Accused Of $100M Illicit Political Donation
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New allegations have surfaced surrounding Sam Bankman-Fried (SBF), the founder of the now-collapsed crypto exchange FTX. SBF’s family is now accused of being involved in a $100 million illicit political donation scheme. Moreover, these claims can lead to intense legal trouble for the accused.
Sam Bankman-Fried’s Family Accused Of Illegal Political Donation
Emails disclosed by The Wall Street Journal (WSJ) have brought to light the extensive involvement of SBF’s family in orchestrating these political contributions. Furthermore, an important point to note is that these donations were allegedly funded by misappropriated FTX customer assets.
Prosecutors asserted that Bankman-Fried orchestrated a sprawling influence campaign ahead of the 2022 election, leveraging stolen customer funds to the tune of over $100 million. The newly revealed emails suggest that key family members played pivotal roles in the scheme. These include SBF’s parents, Joe Bankman and Barbara Fried, along with his brother, Gabriel Bankman-Fried. They managed these funds and directed donations to various political causes and candidates.
Moreover, Joe Bankman, a Stanford University law professor, is accused of advising on financial strategies to facilitate these political donations. The WSJ reports that emails show Joe Bankman’s direct involvement in the illicit operations, indicating he was well aware of the illegal straw-donor scheme.
Barbara Fried, who co-founded the political action committee (PAC) Mind the Gap, allegedly used her position to channel funds towards progressive groups and initiatives. Meanwhile, Gabriel Bankman-Fried is accused of directing donations to pandemic prevention efforts. This coordinated effort to disperse funds across the political spectrum aimed to amplify their influence and support favored causes without drawing attention to the origin of the donations.
Also Read: Fmr Obama Solicitor Says Regulators Are “Deliberately Debanking Crypto”
Former FTX Execs Also Involved
David Mason, ex-chairman of the Federal Election Commission (FCE), weighed in on the matter. Mason highlighted that the evidence presented in the emails constituted “strong evidence” of Joe Bankman’s knowledge and participation in the scheme.
The political donation scheme, as detailed by the WSJ, also involved Ryan Salame and Nishad Singh, two former FTX executives. They have already pleaded guilty to participating in the illegal straw-donor scheme. According to prosecutors, Salame directed funds to Republican candidates to dissociate the contributions from Bankman-Fried, while Singh supported liberal candidates.
The allegations have led to several legal proceedings, with the potential for significant legal liabilities for those involved. Moreover, Mason’s remarks underscore the gravity of the situation. It suggests that Joe Bankman could face direct legal consequences under campaign finance laws if the allegations are substantiated.
Despite the mounting evidence, a spokesperson for Joe Bankman has refuted claims of his involvement. They stated that Bankman had “no knowledge of any alleged campaign finance violations.” This defense, however, stands in stark contrast to the detailed emails that have surfaced.
Also Read: Just-In: Mt. Gox Starts Repaying Creditors, Bitcoin To Dip Further?
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.
Regulation
OpenAI Challenges NYT to Prove Originality of Articles in Copyright Case
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In a notable legal confrontation, OpenAI has requested that the New York Times (NYT) validate the originality of its articles. The AI firm demands the court mandate NYT disclose detailed source materials for each copyrighted article. This move is part of an ongoing lawsuit in which the NYT accuses OpenAI of using its content without permission.
OpenAI Requests Transparency from NYT
OpenAI’s legal team has approached a New York court with a significant demand. They insist that the NYT provide comprehensive details about the creation process of its articles. The request includes access to the reporter’s notes, interview records, and other source materials. OpenAI argues that this information is crucial to determine the originality and authorship of the articles in question.
The court filing by OpenAI aims to explore the depth and authenticity of the NYT’s journalistic process. Their lawyers argue that the NYT’s claim of substantial investment in high-quality journalism prompts a need for transparency. They believe understanding the creation process is essential for the court to make a fair judgment.
OpenAI argues that such disclosure is necessary for its defense. Detailed insight into the NYT’s authorship process will help ascertain whether the articles are original works. The NYT made this request following allegations that OpenAI unauthorizedly used its content to train AI models.
Also Read: German Lawmaker Wants Government To HODL Bitcoin (BTC), Not Sell
NYT Fights Back on Copyright Infringement
Responding swiftly, the NYT’s legal team filed a motion to dismiss OpenAI’s request on July 3. They argue that OpenAI’s demands are excessive and could set a troubling precedent for copyright law. The NYT contends that the intricacies of their journalistic practices are irrelevant to the issue of copyright infringement.
The NYT’s opposition stresses that the request undermines the basic principles of copyright law. They believe that proving the content creation process does not pertain to the alleged misuse. The NYT’s lawyers highlight that the focus should remain whether OpenAI used the copyrighted articles without authorization.
Furthermore, the NYT accuses OpenAI of attempting to divert the court’s attention from the real issue at hand. They maintain that the lawsuit should concentrate on the legality of OpenAI’s use of the NYT’s copyrighted content. The newspaper defends its rights to its intellectual property, arguing that the creation process should remain protected.
Also Read: Core Scientific Founder Claims Bitcoin’s True Value Not Yet Realized
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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