Connect with us

Regulation

US SEC Chair Gensler reaffirms Bitcoin (BTC) is not a security under SEC rules

Published

4 months ago

on


US SEC Chair Gensler reaffirms Bitcoin (BTC) is not a security under SEC rules
  • US SEC Chair Gensler reaffirms Bitcoin (BTC) is not a security under current regulations.
  • SEC plans new regulations for DeFi and trading systems to protect investors.
  • Crypto firms, including Coinbase, push back against expanding regulatory scope.

In recent statements, SEC Chairman Gary Gensler has firmly reiterated that Bitcoin is classified as a non-security under existing SEC regulations. His comments came during an interview on CNBC’s “Squawk Box.”

Gensler emphasized the importance of regulatory clarity, insisting that while many firms have benefitted from the public’s growing interest in cryptocurrencies, they often resist the regulations designed to ensure market integrity.

In the interview, Gensler noted that the SEC’s role is to foster trust in the market, stating, “Innovations do not develop in the long term unless they also build trust.” He referenced the significant losses and bankruptcies that have occurred in the crypto space, underscoring the necessity of having regulations in place to protect investors.

Despite Gensler’s reaffirmation regarding Bitcoin, he acknowledged the discontent among crypto firms concerning regulatory frameworks. He highlighted that many industry stakeholders argue against the existence of such regulations, which he attributes to their discomfort with the enforcement actions taken by the SEC.

Notably, Gensler’s remarks follow the recent eToro settlement, which confirmed that Bitcoin (BTC), along with Bitcoin Cash (BCH) and Ethereum (ETH), are not considered securities.

SEC’s trading systems proposal

In the interview, Gensler indicated that the SEC is working on new regulations for decentralized finance (DeFi), suggesting a potential shift in oversight for various trading platforms.

Earlier Gary Gensler while testifying before the US House Financial Services Committee discussed the SEC’s ongoing proposal to mandate that alternative trading systems register as brokers. This proposal aims to close regulatory gaps among trading platforms, ensuring compliance with rules intended to prevent unfair trading practices.

However, the proposed regulations have met significant push-back from digital-asset firms, including Coinbase, which argue that the definition of an exchange could inadvertently include DeFi platforms, complicating their compliance.

As the SEC continues to navigate the complex landscape of cryptocurrency regulation, Gensler reiterated the agency’s commitment to fostering a transparent market.

With no timeline set for final decisions on the trading systems proposal, the SEC remains open to considering applications from exchanges seeking to offer central clearing for the US Treasury market, which is projected to expand significantly under new rules.

Share this article
Categories
Tags



Source link

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Regulation

South Korea’s Largest Exchange Upbit Under Sanctions Review by Watchdog

Published

6 minutes ago

on

January 22, 2025

By


Upbit, South Korea’s largest crypto exchange, is facing increased scrutiny over alleged Know-Your-Customer (KYC) violations. The Financial Intelligence Unit (FIU) of South Korea has scheduled a disciplinary hearing on January 21 to evaluate the exchange’s regulatory compliance. As as result, the crypto market could see significant low activity amid the review

FIU Meeting To Assess Upbit’s KYC Violations

Notably, the FIU revealed that the sanctions review meeting would assess the 500k+ suspected KYC breaches discovered during an on-site inspection for the renewal of the virtual asset service provider (VASP).

Reportedly, this sanctions-level meeting for Upbit marks the first hearing of its kind, addressing issues identified during a VASP renewal inspection. This meeting will determine the extent of sanctions Upbit could face, considering factors like lapses in KYC compliance. Analyzing the crypro exchange’s explanation for its alleged violations, the regulator would determine the severity of fines and disciplinary actions against the platform.

Upbit Faces Scrutiny Under South Korea’s FIU

Since August last year, Upbit facing investigations led by the financial watchdog. During the license renewal process, the FIU uncovered 500,000-600,000 cases of unauthorized customer verification procedures. This includes instances of accounts being approved despite the blurred customer name or registration number, making identification impossible.

Though these cases highlight the exchange’s reluctance to follow regulatory standards, it is still uncertain whether they actually mark KYC breaches. However, following the disciplinary meeting, FIU is likely to draw conclusions, particularly based on Upbit’s explanations.

South Korea’s Crypto Regulatory Norms

South Korea has embarked on its journey to establish a crypto-focused regulatory framework. In a recent development, the Financial Services Commission has kicked off discussions on the second phase of crypto regulations, especially targeting stablecoins and customer protection.

South Korea’s recent collaboration with the US and Japan to tackle the growing crypto threats also underscores the nation’s commitment to user security. Last day, the three countries jointly released a paper, warning against the North Korean hackers’ eye on crypto.

The FIU’s meeting on Upbit’s KYC violation marks a significant turning point in South Korea’s regulatory landscape. While the meeting decides its fate in South Korea, it could have a broader impact on global crypto regulations and laws.

✓ Share:

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.





Source link

Continue Reading

Regulation

New SEC Leadership Under Donald Trump To Revamp Crypto Regulations

Published

1 hour ago

on

January 22, 2025

By


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.

✓ Share:

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.





Source link

Continue Reading

Regulation

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

Published

2 hours ago

on

January 22, 2025

By


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.

ImageImage

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.

✓ Share:

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.





Source link

Continue Reading

Trending

Copyright © 2024 coin2049.io