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Coinbase Subpoena for SEC Chair Gensler

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4 months ago

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Coinbase Vs. SEC Lawsuit: Coinbase has reduced the scope of the subpoena served to SEC Chair Gary Gensler and is only seeking documents from when he was chair. This move comes after a New York judge questioned the breadth of the initial subpoena that was issued.

Coinbase Refines Subpoena for SEC Chair Gensler

Coinbase, a crypto exchange, has changed its legal approach in the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The company has narrowed down the subpoena concerning SEC Chair Gary Gensler to ask for documents from his tenure at the SEC only. This came after a New York judge worried over the breadth of the initial demand that covered messages from 2017 up to the present.

The original subpoena was delivered in June and sought communications concerning Gensler’s prior comments on cryptocurrency prior to his becoming SEC chair in 2021.

However, in a recent court filing, Coinbase has opted to narrow down its demand to only Gensler’s time as the SEC Chair. This change was conveyed by the company’s lawyer in a scheduling order filed on Monday.

Judge’s Concerns Prompt Changes

U.S. District Judge Katherine Polk Failla had some concerns about the scope of Coinbase’s first subpoena. Speaking during a pre-trial motion conference on July 11 th, she stated that she was not persuaded by Coinbase’s arguments especially those concerning Gensler’s private conversations on cryptocurrencies.

Judge Failla suggested that Coinbase should concentrate on facts related to Gensler’s function as SEC chair, which led to the change of strategy.

The lawyer representing Coinbase stated that they would be filing a motion to compel the SEC to provide the requested documents with an opening brief set for July 23. The SEC has fought the subpoena and called it an overreaching intrusion into Gensler’s private life.

SEC’s Recent Regulatory Stances

The ongoing court battle between Coinbase and the SEC is just a part of the broader fight for regulation in the crypto market. The SEC’s complaint against Coinbase is that the exchange functioned as an unregistered broker and dealer as well as an unregistered clearing agency. Coinbase’s motion to dismiss the lawsuit was denied in March, although one of the claims related to the company’s Wallet application was dismissed.

At the same time, Elizabeth Goody became the SEC’s lawyer in that case against Coinbase. This addition happens at the same time when the SEC finishes investigations into a number of crypto companies, including Consensys, Paxos, and Hiro and does not demand enforcement actions. These changes have also led to different speculations in the cryptocurrency market concerning the current position of the SEC on Crypto.

Paul Grewal, Coinbase’s Chief Legal Officer, has stated that the recent actions by the SEC may indicate that the regulator is open for dialogue with the crypto industry. According to Coingape, Grewal stated that the SEC may very well be prepared to come to the table with the industry and work with it, as opposed to striking against it through enforcement actions.

Read Also: Tether and Bitfinex Dragged In Amended Class Action Lawsuit

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

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

Cardano Founder Charles Hoskinson Confirms Crypto Advisor Role Under Donald Trump

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6 hours ago

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November 10, 2024

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Cardano Founder Charles Hoskinson has confirmed plans to collaborate with the U.S. government under Donald Trump to help shape crypto legislation. The goal is to create clear regulatory frameworks for the cryptocurrency industry, which has faced years of uncertainty and regulatory challenges.

Charles Hoskinson revealed these plans during a recent address, where he emphasized the need for bipartisan support in developing crypto-friendly policies. This development comes as Cardano, along with other major blockchain networks like Bitcoin, faces ongoing regulatory scrutiny from U.S. agencies.

Cardano Founder Charles Hoskinson Crypto Advisor Role

Hoskinson stated that his company, Input Output Global (IOG), will establish a dedicated policy office to focus on crypto regulation. The office will work to integrate aspects of the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Responsible Financial Innovation Act (RFIA) into a comprehensive legislative proposal. “I will work with lawmakers and the administration to get a bipartisan bill passed,” he said.

The Cardano founder highlighted the importance of cooperation across party lines, pointing out that the recent FIT21 bill passed in the House with over 60 Democrat votes, indicating growing support for bipartisan crypto legislation.

Charles Hoskinson’s statement also acknowledged the potential influence of a Republican-controlled Senate, House, and presidency in the coming years. He expressed optimism that the political environment could present an opportunity for the crypto industry to secure much-needed regulatory clarity. He remarked,

“This is the best opportunity we have ever had in the history of the industry to get clarity.”

This Is A Breaking News, Please Check Back For More

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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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Bitcoin Fog Founder Sentenced To 12.5 Years for $400M Crypto Laundering Scheme

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1 day ago

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November 9, 2024

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Bitcoin Fog founder Roman Sterlingov has been sentenced to 12.5 years in prison for operating a major cryptocurrency mixing service that laundered over $400 million in criminal proceeds. 

The Washington federal court ruling was handed down by U.S. District Judge Randolph Moss, who also ordered the forfeiture of $395 million in assets, including seized cryptocurrency and Sterlingov’s interest in a Bitcoin wallet with over $103 million in Bitcoin.

Bitcoin Fog Founder Sentenced To 12.5 Years

Roman Sterlingov, a Russian-Swiss national, was convicted of multiple charges related to operating Bitcoin Fog, a cryptocurrency “mixer” that obscured the origins of digital currency transactions. The prosecution stated that Bitcoin Fog was a convenient way for criminals to launder the money obtained from criminal activities, including those related to narcotics on the darknet markets.

After a jury trial in March, Sterlingov was found guilty of conspiring to launder money, money laundering, and operating an unregistered money transmitting business.

Bitcoin Fog allowed users to combine or “mix” digital assets, making it harder to trace individual transactions. Prosecutors said that Sterlingov’s service functioned for approximately ten years and had aimed to enable untraceable transactions to support money laundering activities on an extensive scale.

Principal Deputy Assistant Attorney General Nicole M. Argentieri said that Roman Sterlingov “laundered over $400 million in criminal proceeds through Bitcoin Fog” and noted that the sentence demonstrates the Justice Department’s efforts to prosecute those who facilitate criminal conduct.

Judge Considers Deterrence in Sentencing

Judge Randolph Moss imposed a 12.5-year sentence, which was substantially less than the 30 years requested by the prosecution for the Bitcoin Fog founder. Prosecutors had argued for a severe penalty due to the prolonged and extensive nature of the scheme. “This is criminal activity of a staggering scale over a prolonged period of time,” said prosecutor Christopher Brown. 

Nonetheless, Judge Moss said that a life sentence is excessive given the offense, although he emphasized the need for a significant deterrent in the cryptocurrency sector given that it is often difficult to follow the funds.

Roman Sterlingov said during the sentencing hearing, “I am sorry for any harm that may have come from my actions.” The defense had requested the judge to impose a maximum of 7.5 years saying there was no direct proof of Sterlingov contributing to the running of the Bitcoin Fog. Concurrently, Sterlingov’s attorney, Tor Ekeland, argued that there were no service logs or eyewitness statements that would have placed his client in control of the mixing service.

Recent Sentences In The Crypto Industry

The sentencing of Sterlingov comes amid scrutiny of the crypto industry, as other high-profile cases involving fraud and money laundering unfold.

Recently, Caroline Ellison, former CEO of Alameda Research, received a two-year prison sentence for her role in the FTX fraud, which defrauded investors out of billions. 

In that case, key witnesses, including Ellison and former FTX engineer Nishad Singh, received lighter sentences or avoided prison time by cooperating with prosecutors against FTX founder Sam Bankman-Fried.

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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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Richard Farley Is Top US SEC Chair Candidate For Donald Trump: Report

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1 day ago

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November 8, 2024

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Richard Farley, a Wall Street lawyer known for his work in leveraged finance, is reportedly under consideration to lead the Securities and Exchange Commission (SEC) in the upcoming Trump administration.

Farley, a partner at the New York law firm Kramer Levin Naftalis & Frankel, has experience representing major financial institutions, including Goldman Sachs, Credit Suisse, and UBS, according to sources familiar with the matter.

Richard Farley’s Background and Connections 

Richard Farley has earned his place in Wall Street mainly due to his expertise and experience in financing related activities especially those involving banks and other financial institutions. He is also the co-head of the Kramer Levin’s Leveraged Finance Group where he has advised on a number of matters relating to private credit firms.

In 2017 Farley acted for Cantor Fitzgerald in a share sale of Sorrento Therapeutics. Cantor’s CEO, Howard Lutnick is a key member of Trump’s transition team for personnel and can therefore help Farley’s chances of being appointed as chairperson of SEC.

Not only does Richard Farley have a successful career, he also has personal relationships within the Republican party. His wife, Chivacci “Chele” Farley has been the GOP finance chairman for New York City and has also vied for political office as a republican. Farley, who used to be enrolled in the Democratic Party, has apparently endorsed GOP in recent years. He is also a longtime friend of Robert F. Kennedy Jr., a Trump supporter who recently announced his interest in serving in the new administration’s cabinet.

Donald Trump’s Priorities for the US SEC Under New Leadership

The current US SEC Chair Gary Gensler is apparently among the officials that the Trump team wants to get rid of. Gensler, who has come under fire from some in the financial industry, has one and a half years remaining in his term, which is currently scheduled to conclude in June 2026. 

However, Trump’s team has already signalled that they intend to appoint a new chair at the beginning of the new administration. Chris Iacovella, the Chief Executive Officer of the American Securities Association, has announced that Gensler’s exit from the Securities and Exchange Commission would improve the confidence in the same organization among the retirees, small business persons, and the working class.

The Trump team has apparently considered reshaping the SEC to return to its core mission that is consumer protection. This will be a change from Gensler’s style, which has been criticized by some as aggressive, particularly with regard to virtual currency regulation.

Farley’s Views and Possible Direction on Cryptocurrency

Richard Farley has not publicly commented on his views regarding cryptocurrency regulation, but the Trump transition team has indicated a preference for an SEC chair who is “pro-crypto.”

Republican SEC Commissioner Mark Uyeda, who could serve as acting chair until a permanent replacement is appointed, has expressed the need to end what he described as the SEC’s “war on crypto.” Uyeda suggested that enforcement actions against firms solely for failing to register, without allegations of fraud, should be paused until clearer regulatory guidelines are established.

Uyeda stated that “the Commission’s war on crypto must end,” adding that the next SEC chair under Trump would likely prioritize creating a more defined regulatory framework for digital assets.

Alongside Richard Farley, other names being considered for the US SEC chair position include Dan Gallagher, Robinhood’s Chief Legal Officer and a former SEC commissioner; Chris Giancarlo, former chair of the Commodity Futures Trading Commission and known as “CryptoDad” for his favorable stance on digital assets; and current SEC Commissioner Hester Peirce. 

Gallagher’s candidacy has been supported by some in the crypto community, who view him as favorable to the industry’s growth and regulatory clarity.

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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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