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US SEC Under Fire as Empower Oversight Demands XRP Case Transparency

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6 months ago

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Empower Oversight is stepping up its attempts to receive information from the Securities and Exchange Commission (SEC) about the conflicts of interest and selective enforcement of cryptocurrencies.

The complainant has asked the SEC’s OIG to issue a report that is still pending and assesses these questions of law, especially those concerning Hinman and Clayton of the SEC.

US SEC Under Fire On Conflict of Interest

Empower Oversight has been trying to get information on conflict of interest at the SEC for almost three years now. In August 2021, the organization began a FOIA lawsuit, which demanded records of the communication between SEC representatives and other parties concerning cryptocurrencies.

Even when signals were put out five months ago that the SEC-OIG was finalizing its report, Empower Oversight remains worried about the thoroughness of the investigation.
Tristan Leavitt, the president of Empower Oversight, noted that the report may only focus on the conflicts of interest involving Hinman and not those involving former SEC Chair Jay Clayton.

Leavitt also noted that it is very important to look at Clayton’s decisions during his time at SEC, especially concerning the aforementioned cryptocurrencies – Bitcoin, Ether, and XRP – for the sake of proving that the firm can effectively manage and avoid conflicts of interest.

Legal Battles for Transparency

Empower Oversight’s efforts to promote transparency have resulted in several lawsuits. In December 2021, the organization sued the SEC to obtain information on the matters of interest conflict and selective actions taken by the US SEC.

However, the firm has been alleged to have dragged its feet in responding to the FOIA requests, and this culminated into other lawsuits in May 2023 and March 2024. The SEC’s unwillingness to release the documents has been a source of worry on the part of the agency on transparency.

Leavitt also accused the SEC of delaying tactics with regards to the FOIA requests saying that the delay has hampered the monitoring of possible conflict of interest concerning the decisions made by the SEC officials on cryptocurrencies.

Hinman and Clayton’s Cryptocurrency Decisions Under Scrutiny

William Hinman, the former Director of SEC and Jay Clayton, the former Chair of SEC have been in the middle of controversy concerning cryptocurrency regulation. Hinman was well compensated by his previous law firm Simpson Thacher which had a financial interest in pushing Ethereum. The speech made by Hinman in 2018 that Ether is not a security has formed the center of Empower Oversight’s investigations.

Likewise, Clayton’s time in the chairmanship of the firm has been associated with a number of regulatory actions concerning Bitcoin, Ether, and XRP. The FOIA requests that Empower Oversight sent were intended to reveal any possible conflicts of interest and contacts between Clayton and cryptocurrency enthusiasts.

The firm’s refusal to provide these documents has been an ongoing issue and raises questions about the integrity of the SEC’s decision-making process.

Ripple vs SEC: Awaiting Transparency and Final Judgment

The legal conflict between Ripple Labs and the SEC has also played a role in emphasizing the importance of clarity. The case relates to the SEC’s determination of XRP as an unregistered security, and the public has shown keen interest in the possibility of settlements.

In spite of several backdoor meetings, Marc Fagel, a former SEC lawyer, has come out to dismiss rumors of the two parties entering into settlement negotiations, citing that both are still waiting for the district court’s decision.

Empower Oversight is still campaigning for information on how the firm has dealt with cryptocurrencies, such as the Ripple case. The organization’s actions reflect the general trend whereby regulatory authorities responsible for the cryptocurrency markets are being called to explain their actions.

Read Also: Bitcoin Price Tops $65K, Here Why BTC Rally Is Poised To Continue

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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

Ex-SEC Lawyer Says XRP Lawsuit Settlement Weeks Away

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3 hours ago

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January 22, 2025

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The crypto community is rife with speculation about an imminent Ripple SEC case settlement as the US Securities and Exchange Commission (SEC) prepares for its first meeting under acting chair Mark Uyeda. However, ex-Securities lawyer Marc Fagel debunked rumors of the settlement. He suggested that those holding out for a resolution will likely be disappointed.

According to the former SEC attorney, the Ripple SEC case settlement is likely to happen after Paul Atkin’s appointment as the SEC Chair. While all eyes are on Thursday’s closed meeting, it remains uncertain whether the XRP lawsuit will reach a conclusion shortly.

Is Ripple SEC Case Settlement Imminent?

In his recent X post, Securities lawyer Marc Fagel dismissed rumors of the Ripple SEC case settlement, which the community expects to follow Thursday’s closed meeting. Asserting that the meeting has nothing to do with the XRP lawsuit, Fagel stated,

This is the same meeting they hold nearly every week. They will vote on recommendations calendared weeks ago. Those expecting something monumental to happen are about to be disappointed.

Further, Fagel clarified the buzz surrounding the Ripple SEC case, positing that a settlement this week is impossible. Instead, he believes the Trump administration might facilitate a resolution, but only after Paul Atkins takes charge.

SEC’s First Closed Meeting with Acting Chair Mark Uyeda

Fagel’s post came in response to Fox Business journalist Eleanor Terrett’s thread, which revealed, “The SEC will hold its first closed meeting since Mark Uyeda took over as acting chair on Thursday.” This follows Mark Uyeda’s launch of a dedicated Crypto Task Force with Commissioner Hester Peirce as the lead. According to the agenda, Uyeda’s meeting would include the institution and settlement of injunctive actions and administrative proceedings, resolution of litigation claims etc.

Significantly, the potential closed meeting has sparked anticipations of a near-term settlement in the XRP lawsuit. Experts like MetaLawMan expect the SEC’s release of the Inspector General’s report on Bill Hinman’s conflicts of interest shortly. “I can’t think of any reason that simple act of transparency would need to wait for Paul Atkins’ arrival,” added MetaLawMan.

Mark Fagel Predicts a Possible 10-Month Delay in Ripple Case

Recently, Marc Fagel shed light on a possible delay in the Ripple SEC case settlement despite the XRPArmy’s growing optimism. Fagel’s statement that the lawsuit may conclude quickly or drag on for an extended period underscored the case’s uncertain outcome.

Despite the ongoing debate, the community remains optimistic about the lawsuit’s settlement. However, it needs to be seen how the closed meeting will impact Ripple vs SEC.

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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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Thailand Boosts Crypto Ambitions, Welcomes Bitcoin ETFs on Local Exchanges

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6 hours ago

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January 22, 2025

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Thailand is witnessing a significant breakthrough in its ambitious vision to establish a digital asset hub. A recent report on Wednesday revealed Thailand’s plans to adopt Bitcoin ETFs, permitting local exchanges to list the exchange-traded funds.

Thailand Prepares for Bitcoin ETF Debut

The Thai Securities and Exchange Commission (SEC) plans to approve its first Bitcoin ETF, aligning with the country’s crypto hub vision, Bloomberg reported on January 15.

SEC Secretary-General Pornanong Budsaratragoon posited that the move would allow individual and institutional investors to invest in the Bitcoin vehicles directly.

Promoting the use of cryptocurrencies, Thailand is paving the way for the worldwide adoption of digital assets. During an interview on Tuesday, Pornanong stated,

Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection.

Although, One Asset Management in Thailand has introduced a fund-of-fund tracking international Bitcoin ETFs, a direct investment tool remains pending approval. The ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) and was approved by the Thai SEC last year.

Thailand’s Thaksin To Legalize Crypto

The latest development came on the heels of Pheu Thai Party leader Thaksin Shinawatra’s efforts to legalize crypto. Citing the incoming US President Donald Trump’s crypto-friendly approach, Thaksin suggested Thailand embrace a more progressive stance on virtual assets. He also proposed the increased issuance and use of stablecoins.

Digital-asset trading activity in Thailand is picking up amid a wider rally that pushed Bitcoin to a record high of $108,315. Crypto hedge funds had a great last year but failed to give more returns than Bitcoin (BTC), as per Bloomberg

Thailand’s Broader Crypto Vision and Regulations

Thailand has long been striving to solidify its position at the forefront of the global crypto market. In a recent development, the country announced its crypto payment pilot project, with the trial set in Phuket.

While the initiative is expected to be executed within Thailand’s existing legal framework, it bolsters the nation’s crypto vision. The country is broadly looking to boost crypto adoption and Bitcoin ETFs will be welcome move for the local crypto industry.

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

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7 hours ago

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January 22, 2025

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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.

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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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