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Consensys Lawyer Makes Case Against SEC’s Caroline Crenshaw’s Renomination

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1 month ago

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As the U.S. Senate Banking Committee prepares to vote on December 11 regarding the renomination of SEC Commissioner Caroline Crenshaw, Bill Hughes, a lawyer at ConsenSys, has raised concerns about her track record, particularly her stance on cryptocurrency regulation.

Bill Hughes argues that her renomination could be seen as a politically hostile act by the crypto industry, as her views are in stark contrast to the increasing support for crypto-friendly policies within the U.S. government, including the recent nomination of Paul Atkins as SEC Chair by President-elect Donald Trump.

Consensys Lawyer Concerns Over SEC’s Caroline Crenshaw’s

Bill Hughes has been a vocal critic of Crenshaw’s approach to crypto regulation. He pointed out that if the Senate votes to confirm her renomination, it would be seen as a significant step backward for the crypto industry. Hughes specifically referred to Crenshaw’s opposition to Bitcoin exchange-traded funds (ETFs), a move that has drawn widespread criticism.

In a dissenting opinion, Caroline Crenshaw argued that approving a spot Bitcoin ETF was “unsound and ahistorical,” a position that many in the crypto community have condemned.

Consensys lawyer Bill Hughes believes that Crenshaw’s opposition to such financial products is out of touch with the evolving landscape of the crypto market. He further highlighted that her views were at odds with the increasing momentum within the U.S. government to embrace crypto, a shift reflected in the nomination of Paul Atkins, who is seen as a pro-crypto figure and is set to replace Gary Gensler as the next US SEC Chair.

Crenshaw’s Dissent and the Crypto Industry’s Backlash

Caroline Crenshaw’s dissent against the approval of Bitcoin ETFs was a key moment in her tenure as SEC Commissioner. She questioned whether these products were even necessary, suggesting that blockchain technology itself could render such financial products obsolete.

Crenshaw’s stance has been widely criticized within the crypto industry, with many seeing her as a major obstacle to the broader adoption of crypto.

Industry leaders, including Coinbase CEO Brian Armstrong, have spoken out against her position, calling her opposition to Bitcoin ETFs “embarrassing.” James Seyffart, a Bloomberg ETF analyst, also weighed in, saying Crenshaw’s anti-crypto stance was even more vehement than that of SEC Chair Gary Gensler, who is also known for his tough approach to crypto regulation.

Paul Atkins and the Shift Toward Crypto-Friendly Leadership

Amid the criticism of Crenshaw, there has been growing support for Paul Atkins, nominated by President-elect Donald Trump to become the next SEC Chair. Atkins, who is seen as a pro-crypto figure, is viewed by many in the crypto industry as someone who will foster a more collaborative approach to crypto regulation. His nomination is seen as part of a broader shift in the U.S. towards more crypto-friendly leadership at the US SEC.

Atkins has a track record of advocating for market-driven regulations that do not stifle innovation. His appointment signals a significant departure from the more restrictive policies of the outgoing SEC leadership under Gary Gensler, whose tenure has been marked by aggressive enforcement actions against crypto companies. The appointment of Atkins has been welcomed by many in the crypto community, who hope it will pave the way for clearer, more favorable regulatory frameworks for digital assets.

Subsequently, the upcoming vote on Crenshaw’s renomination has put the Senate Banking Committee at the center of a critical decision. If the committee confirms her renomination, it could mean more years of stringent, anti-crypto policies at the SEC. However, with the nomination of Paul Atkins as SEC Chair, there is a growing hope that the U.S. will move towards a more balanced and progressive approach to crypto regulation.

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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

New SEC Leadership Under Donald Trump To Revamp Crypto Regulations

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57 minutes ago

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January 22, 2025

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The incoming administration under President-elect Donald Trump is preparing to introduce changes to cryptocurrency regulations in the United States. Sources indicate that the Securities and Exchange Commission (SEC), under new leadership, will initiate a review of its current policies and enforcement actions related to crypto.

Donald Trump SEC Leadership To Reassess Crypto Enforcement Actions

A recent Reuters report suggests that top officials at the SEC, including Hester Peirce and Mark Uyeda, are planning to reassess existing crypto enforcement cases. The focus will be on cases where fraud is not alleged, with the possibility of freezing or withdrawing some lawsuits.

Under the outgoing leadership of Gary Gensler, the SEC pursued at least 83 enforcement actions involving crypto-related companies. These actions targeted firms like Coinbase and Kraken, often on the basis that their tokens were considered securities. Industry participants have long sought clarity on when and how the SEC applies its rules to digital assets.

Sources state that Peirce and Uyeda are expected to call for feedback on potential new crypto regulations. This process will address industry concerns while aligning the SEC’s rules with evolving market conditions.

Meanwhile, Bitcoin advocate Anthony Pompliano has outlined three key actions for Donald Trump to boost U.S. Bitcoin adoption. Anthony proposed repealing SAB 121 for banks to hold Bitcoin, establishing a national Bitcoin reserve, and reforming tax codes to eliminate capital gains tax on BTC payments. Pompliano believes these measures will solidify the U.S. as a crypto leader.

Proposed Regulatory Changes

The SEC is likely to revise its guidance on accounting practices for companies holding crypto assets. The current guidance has reportedly made it costly for listed firms to manage digital tokens for third parties. Changes in this area will lower barriers to institutional participation in the crypto market.

Paul Atkins, Donald Trump pick for Securities and Exchange Commission Chair, has a reputation for supporting crypto-friendly policies. However, his confirmation by the Senate may take some time. Until then, Peirce and Uyeda will lead interim efforts to reshape regulatory priorities.

Trump Administration’s Executive Orders to Accelerate Crypto Overhaul

President-elect Donald Trump is expected to issue executive orders aimed at expediting crypto regulatory reforms. These orders may direct federal agencies, including the SEC, to review their policies and promote innovation in the digital asset sector.

The administration’s pro-crypto stance has already generated excitement within the market. Bitcoin reached $100,000 for the first time in December, reflecting optimism about the regulatory environment under Trump’s leadership.

Despite the optimism, revising regulations and enforcement actions could face challenges. Legal experts note that dismissing pending cases or reopening settlements may lead to objections from courts. Resolving these issues will require careful coordination between the SEC and industry stakeholders.

The new leadership may also need months to finalize and implement any proposed rule changes. Industry representatives have previously criticized the Securities and Exchange Commission for being unwilling to engage in discussions under its former leadership.

In addition, Bitwise CIO highlighted trends driving corporate Bitcoin adoption, including MicroStrategy’s $42B acquisition plans, new FASB rules allowing firms to record BTC gains and pro-crypto policies. These factors, he notes, are encouraging more companies to integrate Bitcoin into their treasuries.

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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.





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Litecoin ETF Likely Next Spot Crypto ETF to Get SEC Nod; Bloomberg Analyst

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2 hours ago

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January 22, 2025

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A Litecoin ETF may be the next cryptocurrency ETF to be approved in the United States given the current circumstances. Bloomberg Senior ETF Analyst Eric Balchunas made this prediction after Canary Capital filed an amended S-1 registration form in relation to its Litecoin ETF proposal.

Amended Litecoin ETF S-1 Filing Suggests SEC Engagement

Canary Capital had submitted the S-1 registration form for the Litecoin ETF with the U.S. Securities and Exchange Commission (SEC) in October 2024. On Wednesday, the company filed an amended version of this form. According to the filing, U.S. Bancorp Fund Services would act as the administrator of the ETF, while Coinbase Custody Trust and BitGo would act as the custodians for the Litecoin of the fund.

Some of the industry watchers including the Bloomberg analysts have suggested that that the modification of the filing could be an indication of SEC’s interest. Another Bloomberg ETF analyst, James Seyffart pointed out that the amendment could mean the SEC has offered comments on the application. However, there has been no 19b-4 filing made, which is a formal application for rule change that initiates the approval process.

“We had heard chatter that the Litecoin S-1 had gotten comments back from [the] SEC,” said Balchunas in a post on X (formerly Twitter). He also said that this is in line with his earlier claim that Litecoin is ‘most likely’ to be the next cryptocurrency ETF in the United States.

New SEC Leadership Adds Uncertainty

The timing of the Litecoin ETF’s approval process could depend on upcoming changes in SEC leadership. Gary Gensler, the current SEC chair, is set to step down on Monday. Former SEC commissioner Paul Atkins, who has expressed support for the cryptocurrency sector in the past, has been nominated to lead the agency. 

However, the Senate has yet to confirm Atkins’ appointment, and the exact timeline remains uncertain.

Balchunas emphasized that the leadership transition is a “huge variable” in the approval process for the Litecoin ETF.

Growing Interest in Spot Crypto ETFs

Created in 2011 as a more efficient version of Bitcoin, Litecoin is one of the oldest and most stable blockchains. Following the announcement, the price of Litecoin spiked by more than 18% to trade at $119.46 at the time of writing. 

Analysts believe that the current bullish rally may break through the $130 barrier, with the LTC price prediction standing at $170. In addition, open interest increased by 29.58% to $575.39 million within the last 24 hours while the trading volume jumped significantly by 277.25% to $1.65 billion.

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This excitement comes in the wake of the recent approval of U.S. spot Bitcoin and Ethereum ETFs in recent months. These products outperformed the market, which led to the growth of interest among issuers in the creation of ETFs for altcoins like Solana and XRP.

A recent JPMorgan and Hashkey research note suggested that new Solana and XRP ETFs could pull in $13.6bn of new funds if they are approved within six to 12 months. The introduction of altcoin ETFs such as Litecoin may also contribute to increased institutional investments in the cryptocurrency space.

Next Steps for Litecoin ETF Approval

Even though the amended S-1 filing marks a progress, there is no certainty as to when the approval of the Litecoin ETF will be completed. The submission of a 19b-4 application would formally kick off the SEC’s decision process but Canary Capital has not given any indication of when this would happen.

The original filing of Canary identified Litecoin as a blockchain that has had “100% uptime since its inception” noting its security and stability as strengths. Industry participants are now focused on the next steps, such as the SEC’s response and the possible 19b-4 filing, as the momentum for the approval of the Litecoin ETF picks up.

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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

South Korea Regulator Suspends Upbit Operations Over KYC Violations

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3 hours ago

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January 22, 2025

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In the latest development in the Upbit scrutiny, South Korea ordered the platform to suspend its business operations. Citing violations of Know-Your-Customer (KYC) rules and anti-money laundering laws, South Korea notified the exchange about the suspension. Upbit’s future services in the country remain in jeopardy as the exchange has received severe-than-expected sanctions.

Upbit To Suspend Business in South Korea

The South Korean Financial Intelligence Unit has warned Upbit crypto exchange over its alleged violations of the Specific Financial Transaction Information Act. Reportedly, this warning could affect Upbit’s future in South Korea, with a possible halt of services for up to six months. As per the notice, the crypto platform would be restricted from new customer-related activities while existing clients could continue their trade.

Notably, a disciplinary hearing is scheduled on January 21 over the exchange’s KYC violations. Upbit could submit its response by January 20. The FIU’s sanctions-level meeting is expected to evaluate Upbit’s regulatory compliance. During Upbit’s virtual asset service provider (VASP) license renewal program, South Korea discovered more than 500,000 cases related to KYC violations. As these cases include account approval without proper identification, they are considered as unauthorized customer verifications.

How Will Upbit’s KYC Violations Impact the Broader Crypto Industry?

The crypto market is keenly observing the developments within the Upbit case. As of now, the regulators haven’t decided the extent of sanctions, including the possible fines. The industry expects explanations from Upbit on January 21, which would lead to further decisions in the case. Usually, the authority could impose up to 100 million won ($68,592) for violations of customer verification regulations.

South Korea has been at the forefront of crypto regulations, driven by its vision of fostering market expansion and customer security. Its recent efforts highlight its commitment to tackling increasing illegal crypto practices in the country. Further developments in the case could significantly impact the global crypto regulatory landscape.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

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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