Regulation
Nigerian BICCoN calls for crypto exchanges round table with SEC chief amid crackdown
- Recently, crypto exchanges like Binance have found themselves under serious scrutiny in Nigeria
- The BICCoN-led initiative for a meeting between the SEC chief and crypto exchanges reflects a commitment to fostering a conducive crypto environment.
- The outcome of the discussions holds the potential to shape the future trajectory of crypto regulation in Nigeria.
Nigeria’s cryptocurrency landscape is witnessing a flurry of activity as regulatory discussions heat up. Amidst crackdowns by the Nigerian Central Bank (CBN) on crypto transactions, the Blockchain Industry Coordinating Committee of Nigeria (BICCoN) has called for a pivotal meeting between the Securities Exchange Commission (SEC) chief and local and international crypto exchanges.
Regulatory dialogue fuels hope for crypto exchanges
Despite efforts to promote regulatory clarity, Nigeria’s crypto space faces contradictions and challenges amid recent actions by the Nigerian Central Bank including crackdowns on crypto transactions and probes into cryptocurrency usage. Moreover, telecommunications providers have been compelled to block local crypto users from accessing various crypto exchanges’ websites.
Also, in 2022, the SEC introduced new crypto rules, including a substantial hike in registration fees for crypto exchanges, sparking criticism, particularly due to the potential disadvantage to local entities.
The meeting, slated for May 6, aims to address the regulatory challenges and seek consensus on the country’s crypto status. It signals a potential turning point in Nigeria’s crypto regulatory landscape after a period of intense crackdown on cryptocurrency activities in the country.
Dr. Emomotimi Agama, the newly appointed SEC Director General, has extended invitations to industry players, including Blockchain Nigeria User Group (BNUG), Cryptographic Development Initiative in Nigeria (CDIN), Digital Currency Consortium (DCC), and Stakeholders in Blockchain Technology Association of Nigeria (SiBAN).
If fruitful the meeting will foster collaborative efforts in navigating regulatory challenges and unlocking opportunities for growth within Nigeria’s crypto ecosystem.
With diverse perspectives being brought to the table, there is optimism that the meeting could spark positive changes benefiting all crypto stakeholders in Nigeria and on the international stage.
Ripple vs SEC lawsuit: The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) may take more time to resolve than the ongoing case involving Coinbase, legal experts suggest.
With a ruling already in place and other procedural complexities, experts believe that Ripple’s case faces a different set of challenges compared to Coinbase’s recent settlement.
Ripple Vs SEC Lawsuit May Take Longer To Settle
After the US SEC disclosed plans to drop the Coinbase lawsuit, speculations and debate have taken a turn on the potential of the Ripple vs SEC lawsuit outcome and when. However, legal experts have noted the Ripple lawsuit may not be as smooth as Coinbase case. One major factor making the Ripple vs SEC lawsuit more complicated is the ruling already handed down by Judge Torres. According to the filings, Ripple had been ordered to pay a $125 million penalty as part of the settlement with the SEC.
Subsequently, according to experts, the firm’s options now include the possibility of requesting a penalty reduction, which would require both parties to reach an agreement. Legal expert Sherrie, in a recent conversation on X, noted that while a settlement may be reached, it is unlikely that the separation of sales, as stipulated by Judge Torres, would be altered.
Any request to reduce the penalty, she said, would need to be carefully considered by both Ripple and the SEC. Additionally, a request to dismiss the appeal would mean that the original ruling by Judge Torres remains in effect.
“It’s more complicated for Ripple, given the existing ruling. The penalty would still stand unless both parties agree to a reduction,” Sherrie stated.
Ripple Cross-Appeal and Timing Considerations
Ripple vs SEC lawsuit involves more layers due to its cross-appeal, which must also be taken into account. Legal analysts suggest that the timing of Ripple’s upcoming filing—scheduled for April—may be pivotal in determining the case’s trajectory.
Ripple’s request to extend the filing deadline to April 16, 2025, gives further credence to the idea that a resolution may take longer than anticipated. As Ripple’s legal team moves forward with the appeal, both Ripple and the SEC will have to consider how to approach the next steps. As Ripple works toward securing an agreement or a potential settlement, it may continue to assess the possibility of lowering the penalty.
“Ripple’s next filing deadline is in April, which gives both parties more time to negotiate,” said legal expert Bill Morgan.
Ripple lawsuit Appellate Court’s Role
The involvement of the Appellate Court could also extend the timeline for resolving the Ripple vs SEC lawsuit. The court has a panel of three judges who will review and hear the case, a process that takes additional time compared to the procedures of a District Court. This contrasts with the process seen in the Coinbase case, where a settlement was reached more quickly, possibly due to the absence of such complications.
Eleanor Terrett, a FOX journalist, noted that the SEC may also choose to seek an agreement with Ripple at the district court level. The judge overseeing the case, Torres, retains jurisdiction until August 2025, and any changes to the terms of the ruling would require her approval.
“There’s a lot of uncertainty with the Ripple case. The SEC’s next steps are unclear, and any decisions may need Torres’s approval,” said Terrett.
Jeremy Hogan also suggested that Ripple vs SEC lawsuit might take longer to resolve due to the multiple steps involved in the appeal process.
“This isn’t just a straightforward case of settlement or dismissal,” Hogan remarked
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.
ConsenSys has submitted a letter to the U.S. Securities and Exchange Commission (SEC) expressing concerns about the proposed amendments to the definition of “exchange” under U.S. securities laws. The letter, addressed to Commissioner Hester Peirce and the SEC’s Crypto Task Force, requests the removal of the rulemaking from the regulatory agenda.
ConsenSys Challenges US SEC Proposed DeFi Rule Change
According to a recent submission, ConsenSys has urged the SEC to withdraw its proposed rule that expands the definition of an “exchange” to include decentralized finance (DeFi) platforms. The company argues that the amendments exceed the SEC’s legal authority.
ConsenSys asserts that the proposed rule violates the Administrative Procedure Act (APA) by improperly broadening the regulatory scope. Additionally, the company claims that the rule conflicts with the U.S. Constitution by imposing regulatory obligations on decentralized protocols that do not fit the traditional definition of an exchange.
SEC’s proposed amendments on DeFi exchanges received substantial opposition during the 2022 comment period. ConsenSys referenced prior submissions made in April 2022 and June 2023, reinforcing its position that blockchain-based systems should not be categorized as traditional financial intermediaries.
The submission to Hester Peirce’s task force comes just weeks after the launch of a dedicated website outlining its role in establishing clear crypto regulations. The new platform provides a way for industry participants, including ConsenSys, to submit input and engage with regulators.
Concerns Over US SEC’s Statutory Authority
Moreover, ConsenSys maintains that the SEC lacks the statutory authority to extend the definition of an exchange to blockchain-based systems. The company argues that the Securities Exchange Act of 1934 defines an exchange as an entity that provides a centralized market for securities transactions. The proposed rule, according to ConsenSys, improperly expands this definition to cover decentralized protocols.
The submission points out that DeFi platforms operate differently from traditional financial exchanges. Rather than facilitating transactions in a centralized manner, these platforms rely on smart contracts and peer-to-peer networks. ConsenSys warns that regulating these decentralized technologies as securities exchanges would create compliance burdens that are incompatible with their structure.
Consequences On Blockchain Innovation
The letter also warns that the amendments could negatively affect blockchain development and DeFi adoption. ConsenSys states that the proposed rule could discourage innovation by imposing regulatory uncertainty on blockchain developers and users.
The crypto company contends that the amendments could force decentralized platforms out of the U.S. market. By treating DeFi protocols as regulated exchanges, developers may face increased legal risks, reducing the incentive to create blockchain-based financial services within the country.
In its submission, the crypto company has expressed willingness to discuss the issue further with the SEC’s Crypto Task Force. The company emphasized the importance of ensuring that blockchain regulations align with technological realities and legal constraints.
ConsenSys reaffirmed its stance that the SEC’s proposed rule should be removed from the regulatory agenda. With the new Hester Peirce Crypto Task Force, there is hope for ConsenSys and other blockchain firms facing regulatory scrutiny.
Most recently, the pro-crypto task force influenced the decision to pause the SEC’s lawsuit against Binance for 60 days. The review of cryptocurrency regulations may lead to clearer guidelines, potentially benefiting DeFi platforms.
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.
- Coinbase says the SEC has agreed to dismiss its lawsuit against the US-based crypto exchange.
- The SEC sued Coinbase in 2023 but with Gary Gensler’s exit, the regulator is eyeing better regulatory approach.
US-based crypto exchange Coinbase is set for a landmark development after the Securities and Exchange Commission reportedly agreed to dismiss its own lawsuit against the exchange.
Coinbase announced the huge news in a blog post on Friday, Feb. 21. Coinbase CEO Brian Armstrong also shared the development in an interview with CNBC’s Squawk Box.
“SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval – righting a major wrong,” Coinbase chief legal officer Paul Grewal wrote.
Coinbase CEO Brian Armstrong also shared the news via X.
Great news!
After years of litigation, millions of your taxpayer dollars spent, and irreparable harm done to the country, we reached an agreement with SEC staff to dismiss their litigation against Coinbase. Once approved by the Commission (which we’re told to expect next week)… pic.twitter.com/IlnoBs7N6n
— Brian Armstrong (@brian_armstrong) February 21, 2025
SEC vs. Coinbase ending
According to the exchange, the regulator’s decision to withdraw the case follows a settlement that does not involve any financial penalty against Coinbase. The next move is for the SEC commissioners to ratify the agreement and end a major legal hurdle that set the US crypto market back.
“While dismissal will be a major win for the rule of law – and a clear vindication of our position – most of all it will be a win for the entire industry and the 52 million Americans who have owned a digital asset,” Grewal added.
The SEC filed its lawsuit against Coinbase in 2023, accusing the exchange of operating an unregistered securities exchange. The lawsuit also included allegations of offering unregistered securities.
Coinbase contested the charges and sought a dismissal, with industry players criticizing then SEC Chair Gary Gensler of overreach amid regulation by enforcement approach.Notably, the SEC had also sued Binance, the world’s largest crypto exchange by trading volume. Other exchanges to come into the “rogue” agency’s cross-hairs is Kraken.
However, things at the securities watchdog have taken a crypto-friendly turn since Donald Trump’s election and the exit of Gensler and other Commissioners.
Acting chair Mark Uyeda has formed a crypto task force and renamed an enforcement unit amid the quest to balance compliance and the need to protect investors.
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