Regulation
Is The Regulator Withholding Crucial Disclosure?

Just two weeks prior to a cybersecurity breach, the U.S. Securities and Exchange Commission (SEC) was alerted to critical lapses in its cybersecurity defenses. The alert was issued via a report released by the Office of Inspector General (OIG) detailing the SEC’s inadequacies in maintaining strong security measures for digital assets.
The report, published by Cotton & Company Assurance and Advisor, highlighted that there is a necessity to improve several security protocols, including vulnerability management and risk assessment in urgency.
🚨NEW: Remember the @SECGov X hack from January 9th? The last update from the agency on January 22 stated that it was working with the Office of the Inspector General and several outside agencies including the FBI about the incident.
But apparently in 2023, the SEC OIG got an…
— Eleanor Terrett (@EleanorTerrett) May 6, 2024
Based on the document, the SEC was advised to improve its information security controls to include risk management, security training, and continuous diagnostics. Disregarding these suggestions, a breach took place on January 9 when an unauthorized entity accessed the SEC’s X account, deceiving the public with a false statement concerning a Bitcoin ETF approval.
Details of the January SEC Hack
Besides breaching SEC’s communications, the cyberattack had a significant monetary impact as reports claimed that the wrong announcement resulted in $90 million in market liquidations.
This incident entailed a SIM-swapping attack, which is a ploy used by attackers to take control of a victim’s phone number to evade security measures, which include two-factor authentication and which the SEC had not put in place for the account in question.
After the occurrence, the SEC clarified that the breach was restricted to social media and did not reach into internal systems or data. The entry point for the hackers was through the telecom carrier rather than a direct compromise of the digital infrastructure of the SEC, the agency stated.
Congressional Reaction and Calls for Accountability
The breach prompted an immediate reaction from the legislators, with Congresswoman Anne Wagner showing her worries regarding the impact of the hack. Describing the incident as a prime example of market manipulation, Wagner stated that he intended to ask more questions to Gary Gensler, the chairman of the SEC, when it comes to governance and the response after the cyber-attack.
The legislative inquiry has been centered on the sufficiency of the SEC’s reaction to the first OIG report and the possibility of what inaction on the part of the regulator following the report might have done towards the vulnerability that led to the January hack.
SEC’s Ongoing Response
Following the attack, the SEC is being watched to show improvements in its cybersecurity posture. As the SEC claims, they continue to work towards improving the strength of their information security program.
Nonetheless, specifics of how these improvements will be implemented are lacking, which hints at transparency issues and the effectiveness of the SEC’s response to both the OIG report and the January cyber incident.
The OIG’s timeline stipulated that the SEC was to submit its plan of action within 45 days after receipt of the December report, a timeline that came just before the hack. This has prompted more investigations into the adequacy and timeliness of the SEC’s administrative proceedings and observance of cyber security recommendations.
Read Also: SEC Delays Decision on Invesco Galaxy Ethereum ETF to July
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
USDC Issuer Circle Set To File IPO In April, Here’s All

USDC issuer Circle is reportedly set to file its initial public offering (IPO) in April as part of the firm’s plans to finally go public. The stablecoin issuer is allegedly already working with top financial institutions to achieve this move.
Circle To File IPO In Late April
According to a Fortune report, Circle is looking to file its IPO in late April, although the listing period remains uncertain. The report noted that when a company files to go public, its shares usually begin trading four weeks later, indicating that the listing could occur in May. However, there is also a scenario where the IPO process could drag on for months.
The stablecoin issuer is reportedly working with investment banks JPMorgan Chase and Citi to achieve its long-anticipated IPO. The firm had previously tried to go public in 2021 under a SPAC arrangement with a shell company.
The US SEC failed to sign off on this arrangement back then, and the company eventually scrapped these IPO plans by the end of 2022 when the crypto exchange FTX collapsed and the broader crypto market experienced a downturn.
Revelation about Circle’s IPO plans comes just days after the stablecoin issuer partnered with NYSE’s parent company to explore USDC’s use in traditional finance (TradFi). Meanwhile, the USDC stablecoin recently launched in Japan following approval from the country’s regulator. Notably, USDC is the first and only global dollar stablecoin approved under Japan’s stablecoin framework.
An Easier Path Now For The Stablecoin Issuer
Circle will likely face less resistance for its IPO plans under the current SEC administration. Under acting Chair Mark Uyeda, the Commission has shown its willingness to work hand in hand with crypto firms, which was missing under Gary Gensler’s administration.
US SEC Chair nominee Paul Atkins has also shown his willingness to change the approach that Gensler’s administration adopted towards crypto firms. During his nomination hearing, the SEC Chair nominee promised to prioritize providing regulatory clarity for the industry.
Circle’s IPO listing would be the biggest since the top crypto exchange Coinbase went public in 2021. Interestingly, Coinbase owns an equity stake in the crypto firm.
The firm’s USDC is currently the second-largest stablecoin by market cap, only behind Tether’s USDT. The stablecoin industry is heating up as more financial institutions look to develop their own stablecoin.
Donald Trump’s World Liberty Financial recently revealed plans to launch its USD1 stablecoin, while asset manager Fidelity is also considering doing so.
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
Japan Set To Classify Cryptocurrencies As Financial Products, Here’s All

Cryptocurrency investors in Japan are bracing for impact following a plan to reclassify digital assets as financial products. While the plan has elicited excitement from cryptocurrency enthusiasts in the Far East, the ambitious plan will have to scale several legislative hurdles.
Japan Targets Reclassification Of Cryptocurrencies As Financial Products
According to a report by Nikkei, Japan’s Financial Services Agency (FSA) is inching toward classifying cryptocurrencies as financial products. Per the report, the FSA intends to achieve the reclassification via an amendment to the Financial Instruments and Exchange Act.
Currently, digital assets in Japan are considered crypto assets conferred with property rights and seen as payment means. Under the FSA’s plans, cryptocurrencies in Japan will be treated as financial products in the same manner as traditional financial products.
The FSA says it will adopt a slow and steady approach toward the reclassification, carrying out “a private expert study group” to test the waters. If everything goes according to plan, the FSA will submit the amended bill to Parliament in early 2026.
The classification of cryptocurrencies as financial products will have far-reaching consequences for the local ecosystem. Experts say treating cryptocurrencies as financial products will bring Japan closer to a crypto ETF launch amid a changing regulatory landscape.
Furthermore, the move may lower current cryptocurrency taxation for local investors since existing capital market rules will apply to the asset class.
A Fresh Bill For Crypto Insider Trading Is Underway
Apart from the reclassification, the FSA disclosed plans for new legislation against insider trading. The move flows treating cryptocurrencies as financial products and will strengthen existing investor protection rules.
“It is a direction to establish a new insider trading regulation that prohibits trading based on unpublished internal information,” said the FSA. “We will develop laws to prevent unfair transactions.”
However, Japan’s cryptocurrency scene is heating up to a boil, driven by local and international players. Last week, stablecoin issuer Circle secured approval from the FSA for USDC with top exchanges set to list the stablecoin.
Japan’s Metaplanet has tapped Eric Trump to join its Strategic Board of Advisors as it continues to load up Bitcoin.
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
Kentucky Governor Signs Off On ‘Bitcoin Rights’ Bill, Strengthening Crypto Protections


In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.
Bitcoin Rights Bill Comes Into Effect
Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.
In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:
The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.
The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.
The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.
On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.
Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.
Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.
Renewed Optimism Under Trump Administration
Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.
Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.
The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.

Featured Image from Unsplash.com, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
-
Market24 hours ago
Don’t Fall for These Common Crypto Scams
-
Bitcoin17 hours ago
Strategy Adds 22,048 BTC for Nearly $2 Billion
-
Market22 hours ago
Strategic Move for Trump Family in Crypto
-
Market17 hours ago
BNB Breaks Below $605 As Bullish Momentum Fades – What’s Next?
-
Market21 hours ago
Top Crypto Airdrops to Watch in the First Week of April
-
Market16 hours ago
Trump Family Gets Most WLFI Revenue, Causing Corruption Fears
-
Altcoin21 hours ago
$33 Million Inflows Signal Market Bounce
-
Ethereum15 hours ago
Ethereum’s Price Dips, But Investors Seize The Opportunity To Stack Up More ETH
✓ Share: