Regulation
Crypto Titans Bet On Donald Trump Win For SEC Shake-Up
![](https://coin2049.io/wp-content/uploads/2024/05/Donald-Trump-e1708676500107.jpg)
As the 2024 US presidential election approaches, crypto leaders are anticipating significant changes in regulatory oversight if Donald Trump returns to the White House. The crypto industry is dissatisfied with current administration’s stringent approach led by the Securities and Exchange Commission (SEC) under Chair Gary Gensler. This has prompted hopes among crypto advocates that a Trump presidency could usher in a more lenient regulatory environment.
How Donald Trump’s Win Could Reshape Crypto Regulations
Michael Selig, a partner at Willkie Farr & Gallagher LLP, suggests that a Trump administration could “reset and rethink the SEC’s crypto regulatory policy.” It could potentially resolve ongoing enforcement actions and investigations initiated during the Biden administration. This sentiment reflects a broader expectation within the crypto community that Trump’s return could lead to a reduction in regulatory pressure.
Under President Joe Biden, the SEC has intensified its scrutiny of the cryptocurrency sector, especially following the collapse of the FTX exchange in late 2022. The regulator has pursued numerous enforcement actions against exchanges and broker-dealers, alleging failures to comply with securities laws.
Gensler has asserted that many cryptocurrencies qualify as securities and should therefore adhere to SEC registration requirements. This position has sparked contention within the industry.
Despite some settlements, significant litigation involving major players like Ripple, Coinbase, Kraken, and Binance remains unresolved. Recently, he SEC has also closed investigations into Ethereum and Binance USD (BUSD), a USD-backed stablecoin issued by Paxos. However, the debate over whether specific tokens should be classified as securities persists.
A critical case in point is the SEC’s lawsuit against Ripple Labs Inc., which alleges that Ripple conducted an unregistered securities offering through the sale of XRP tokens, raising over $1.3 billion.
Although a federal judge ruled last July that XRP sales to retail investors did not constitute investment contracts, the case’s outcome remains uncertain. However, Ripple CEO Brad Garlinghouse recently indicated that a resolution could be forthcoming. He noted, “We expect a resolution very soon.”
Also Read: Charles Hoskinson Disputes Elon Musk & Robert Kiyosaki On Trump RNC Speech
SEC Reform After Trump Win?
The prospect of Donald Trump‘s victory has fueled speculation about a potential shake-up at the SEC. Austin Campbell, a blockchain consultant and adjunct professor at Columbia Business School, pointed out that a new administration could swiftly alter the SEC’s leadership.
“Remember, if Trump gets elected, the Republicans can immediately change who the chair is,” Campbell said. He predicts that this shift could lead to the settlement of many current cases, potentially ending the “highly variable decisions that are increasing confusion.”
However, some experts caution against assuming that a Trump presidency would automatically lead to a dramatic change in enforcement practices. Emily Meyers, general counsel at venture capital firm Electric Capital, argues that securities enforcement cases are typically “apolitical” and not subject to significant staff turnover with political shifts.
“It’s unlikely that any ongoing cases get dropped, especially those that are already being argued in federal court,” Meyers added, according to a Bloomberg report. Instead, she suggests that a new administration might focus on different types of enforcement cases rather than dismissing existing ones.
Hester Pierce To Replace Gary Gensler?
Similarly, Ji Kim, chief legal and policy officer at the Crypto Council for Innovation, also weighed in. He believes that while Donald Trump administration might alter the regulatory landscape, such changes would depend on the new leadership and the composition of the SEC commissioners.
“If President Trump were reelected and Chair Gensler steps down, we could see the current regulation-by-enforcement norm change,” Kim said. He further added, “However, that would depend on the leadership and the make-up of the commissioners — nothing is guaranteed.”
Meanwhile, Rep. French Hill believes that SEC Commissioner Hester Pierce could replace Gary Gensler after Trump’s Win. In a recent interview, the SEC Commissioner noted, “If the president changes, typically the chairman of the SEC will also change in response to that.” However, Pierce refrained from making any predictions about who would succeed Gensler.
Also Read: Donald Trump To Reportedly Announce Bitcoin Strategic Reserve
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
Is US Fed and SEC Centralizing Crypto Custody? ETF Issuers At Risk
![](https://coin2049.io/wp-content/uploads/2024/06/bitcoin-86-1-e1701671123539.jpg)
The US Federal Reserve has been going after several crypto-friendly banks looking to offer crypto custody services to several market players. In another such crackdown, the US Fed issued a cease-and-desist order to Dallas-based United Texas Bank citing major “deficiencies” in following the anti-money laundering rules linked to the bank’s dealing with crypto firms.
US Fed Targeting Bank on Crypto Custody Offerings
The recent notice from the US Fed to the United Texas Bank doesn’t specify how it failed to comply with AML regulations while dealing with crypto firms. However, per the order, the bank’s leadership has consented to the notice in order to avoid formal proceedings.
The US Fed has given a 90-day period for the United Texas Bank to submit a comprehensive five-point action plan to meet the AML standards. This notice is the latest example of a crypto-friendly bank coming under scrutiny from U.S. regulatory authorities. Last month, Customers Bank faced similar regulatory attention from U.S. officials. Crypto industry players have started questioning these actions from the regulators.
ANOTHER CRYPTO BANK, ANOTHER ENFORCEMENT ACTION…https://t.co/skSeOAgZZi
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) September 4, 2024
Gemini founder Tyler Winklevoss also noted: “When Harris said she wanted to “reset” with the crypto industry, we all assumed for the better. Turns out she meant for the worse”.
While the US Fed has been targeting several crypto custody solution providers, analysts have raised questions about why regulators, including the SEC, are discouraging federally regulated banks from offering custodial solutions. On the other hand, overseas regulators are supporting local banks. A day before, Swiss Bank ZKB announced its trading and crypto custody facility for BTC and ETH.
Crypto ETF Issuers Are At Risk
Amid strong demand for crypto ETFs in the US, hackers have been trying to target their custodial platforms. Recent reports also suggest North Korean hackers targeting Bitcoin ETFs.
ConsenSys lawyer Bill Hughes said: “Crypto ETF issuers better have their security as tight as possible. DPRK is at the door”. Rising further concerns regarding this matter, Fox Business journalist Eleanor Terret said that most of the crypto ETF issuers rely on a single crypto custody provider – Coinbase – for their BTC and ETH holdings.
Thus, Coinbase could be a potential “single point of failure” for the entire market, emphasizing that centralization of crypto custody can be fatal to the entire crypto ecosystem.
It doesn’t bode well that nearly all crypto ETF issuers have the same custodian for all their $BTC and $ETH. This makes @coinbase a potential single point of failure and that’s scary. https://t.co/47RNMQ5dQN
— Eleanor Terrett (@EleanorTerrett) September 4, 2024
Terret also slammed the SEC and US Fed for discouraging federally regulated banks from offering crypto custody services under SAB 121. She argued that such policies reduce the pool of crypto custodians leading to increased centralization and greater vulnerability in the market. Coinbase CLO was quick to respond to Terret’s doubts regarding having Coinbase the major custodian for all ETF issuers.
I think it’s whatever the opposite of scary is. A wide range of the world’s largest and pickiest institutions trust us as the most effective way to keep their clients’ digital assets safe. https://t.co/lL1tEjPv1G https://t.co/jw0Tqgi7td
— paulgrewal.eth (@iampaulgrewal) September 4, 2024
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.
Regulation
Uniswap hit with CFTC order over illegal crypto derivatives trading
![](https://coin2049.io/wp-content/uploads/2024/09/04_Uniswap-1.jpg)
![Uniswap Layer 2 users increase 350% as Poodlana meme coin nears listing](https://coinjournal.net/wp-content/uploads/2022/11/04_Uniswap-1.jpg)
- Uniswap hit with order by CFTC for illegal trading in digital asset derivatives
- The decentralized exchange will pay $175,000 in civil monetary penalty and is also ordered to cease and desist from the illegal offerings.
Uniswap has settled with the Commodity Futures Trading Commission after the regulator found the decentralized exchange had violated derivatives trading regulations. However, the DEX platform has settled with the regulator, agreeing to pay a penalty.
The price of Uniswap token UNI rose slightly after the news, jumping by 7% at the time of writing to trade around $6.46.
CFTC hits Uniswap with $175,000 penalty
According to the CFTC, Uniswap illegally offered access to leveraged or margined trading to retail and institutional users via a digital asset protocol on the Ethereum blockchain. The leveraged tokens on Uniswap offered access to leveraged exposure to digital assets including Bitcoin and Ethereum.
The regulator thus found the platform to have violated the Commodity Exchange Act, and has imposed a $175,000 civil penalty against the exchange.
Commenting on the penalty, CFTC said it is a reflection of the “substantial cooperation” that Uniswap Labs showed amid the regulator’s investigation.
CFTC has, however, issued a cease and desist order against Uniswap Labs.
“Today’s action demonstrates once again the Division of Enforcement will vigorously enforce the CEA as digital asset platforms and DeFi ecosystems evolve” said Director of Enforcement Ian McGinley. “DeFi operators must be vigilant to ensure that transactions comply with the law.”
CFTC’s settlement with Uniswap comes amid a fresh wave of regulatory crackdown by the US Securities and Exchange Commission. While the CFTC has said most cryptocurrencies are not securities, the SEC has taken the opposite view.
In this case, SEC has charged or issued Wells Notices to multiple crypto firms in recent months, including Consensys, Abra, Robinhood and OpenSea.
The regulator also has lawsuits against crypto exchanges Binance, Coinbase and Kraken.
Regulation
Will Nigerian Court Grant Bail To Detained Binance Executive?
![](https://coin2049.io/wp-content/uploads/2024/08/blog-cover-5.webp.webp)
Nigerian Court in Abuja is currently in the spotlight as it reviews the bail application of Tigran Gambaryan, a Binance Holdings Ltd. executive. Gambaryan, the head of financial crime compliance at Binance, has been detained in Nigeria for over six months.
The court proceedings on Wednesday extended for several hours, after which the judge announced that a decision on the bail would be made later next month.
Nigerian Court Delays Bail For Binance Executive To October 9
The Nigerian Court heard extensive arguments concerning the bail request of Tigran Gambaryan. During the session, the crypto exchange executive’s legal representation emphasized his deteriorating health condition, underscoring the urgent need for surgical intervention.
The legal team claimed his health could not be adequately addressed within the medical facilities available to him in detention. The defense further argued that these circumstances justify the granting of bail on medical grounds.
In contrast, the state prosecutor countered these claims by insisting that Gambaryan has received appropriate medical care, including services at a well-equipped hospital in Abuja.
Further, the prosecutor’s stance highlights the government’s position that Gambaryan’s health needs are being met. This challenges the necessity of bail on the grounds presented by the defense. The judge finally stated that a decision on the bail would be made on October 9.
Binance Legal Battle and International Concerns
The case has attracted significant international attention due to the circumstances surrounding the Binance executive arrest and detention. In February, the executive was detained along with a colleague during a visit to discuss compliance issues.
More so, the situation escalated following the colleague’s escape and subsequent charges against Gambaryan. Nigeria Economic and Financial Crimes Commission brought the charges, which include currency manipulation and money laundering.
This incident has strained relations and led to accusations from Binance. The exchange claims that Nigerian authorities demanded a clandestine payment to resolve the company’s legal troubles, a claim Nigeria denies.
In addition, just last week, Binance CEO Richard Teng denied Nigeria’s claim of $26 billion made in revenue in 2023 as reported by the courts. He also called for the humanitarian release of the detained executive.
Moreover, this dispute has drawn scrutiny from international observers and prompted intervention from US lawmakers, who have urged the US government to assist in resolving his detainment. The outcome remains uncertain as the Nigerian Court deliberates on the bail application.
Binance continues to face legal challenges even as its co-founder, Changpeng Zhao, expects release on September 29. The court sentenced him to four months for violations of anti-money laundering laws. Recently, a judge issued a minor order as ten attorneys representing Changpeng withdrew from the lawsuit.
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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