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White House Rejects FIT 21, Calls for Fair Crypto Laws

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6 months ago

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The White House has opposed the Financial Innovation and Technology for the 21st Century Act (FIT 21) due to lack of proper investor protection. This move comes even after the bill holds the possibility of influencing new legislation in the cryptocurrency market.

The statement also points out the willingness of the administration to work with the Congress in order to establish a better legal framework for the digital assets.

White House Rejects FIT 21

The US administration has officially voiced its opposition to the FIT 21 bill, which seeks to reform the market rules for digital assets. The White House has noted that the current version of the bill is insufficient in terms of consumer and investor protection in digital asset transactions.

“H. R. 4763 in its current form is inadequate in terms of consumer and investor safeguards,” the administration pointed out. This position points to a more extensive legislative strategy where it would be possible to include all the existing financial authorities into the array of the balanced legislation.

Unlike previous occasions where the White House has threatened to veto other legislative initiatives, the administration has not ruled out further discussions with regard to FIT 21. This approach testifies to the continuous efforts to enhance the regulation of the digital assets, thus strengthening the position of the USA in the global financial space.

SEC Chair Gary Gensler Stance

Simultaneously, the Chair of the Securities and Exchange Commission, Gary Gensler, expressed equally intense criticism of the FIT 21 Act, noting that it will open new loopholes in the regulation of the cryptocurrency market and traditional financial markets. Gensler’s worries are especially on the possibility of creating a loophole for firms to escape a tough regulation from the SEC by simply declaring that they are decentralized.

This, he claims, could reverse the progress made in financial regulatory policies over the last few decades and make investors more vulnerable to risks.

Gensler’s statement also pointed out the possibility of using self-certification to bypass the securities laws and argued that bad players will be able to use it for fraudulent activities. This firm stand is indicative of the fact that the SEC continues to uphold high standards of investors’ protection in the domain of digital assets.

Concurrently,  Graham Steele, a former Treasury official, opposed the regulation calling it a light-touch regulatory framework for cryptocurrencies. 

Read Also: BlackRock, #Bitwise Updates Spot Ether ETF Application

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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

US Federal Reserve Cuts Interest Rate By 25 Basis Point

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15 mins ago

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November 7, 2024

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The US Federal Reserve announced a 25 basis point (bps) rate cut following its November FOMC meeting. This development is undoubtedly significant, considering the impact it could have on the Bitcoin price and broader crypto market.

US Federal Reserve Announces 25 Bps Rate Cut

In a press release, the US Fed announced its decision to cut interest rates by 25 bps, just about two months after it cut them by 50 bps at its September FOMC meeting. This move from the US Central Bank provides a bullish outlook for the Bitcoin price, which is already hitting new highs.

Interstingly, similar to the US Federal Reserve’s decision, the Bank of England (BOE) announced a 25 bps rate cut earlier in the day. This decision from both central banks will likely open up a liquidity cycle, causing more money to flow into risk assets like Bitcoin and other cryptocurrencies.

The crypto community will look forward to US Federal Reserve Chair Jerome Powell’s speech to see how dovish the Fed is. Positive remarks from him would suggest that the Fed could still cut interest rates at its December FOMC meeting.

In the press release, the US Federal Reserve stated that economic activity has continued to expand at a solid pace. They remarked that since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. They added that inflation has progressed toward their 2% goal.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

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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Polymarket Faces French Ban After Massive Bets On US Election Results

Published

18 hours ago

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November 7, 2024

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Polymarket, a crypto-based prediction market, is likely to be prohibited by France’s gambling regulator, the ANJ, after a huge amount of bets were placed on the 2024 U.S. presidential election. Since the global audience engaged in prediction platforms, Polymarket experienced a record jump, with $450 million expected to be distributed to users following the victory of Donald Trump.

This increase of betting volume and large stakes has become a matter of concern for the French regulator because the platform offers unlicensed gambling services.

$450 Million in Payouts Expected After U.S. Election Bets

Prediction markets, which are expected to increase their payout to election bettors to around $450m following Donald Trump’s projected win, are attracting increasing attention. 

Although conventional polls pointed to a closer contest, prediction markets such as Polymarket and Kalshi recorded a steep rise in Trump’s chances in the last few days, indicating a strong divergence with poll-based expectations.

Among the active users of Polymarket, a French trader called “Theo” made a $26 million bet on Trump’s win and won $49 million. This big bet made Polymarket popular, as the French authorities paid attention to the platform and its popularity among French residents, which led to concerns about the compliance of the platform with French gambling legislation.

France’s ANJ Considers Blocking Access to Polymarket

The ANJ has claimed that Polymarket is involved in gambling which is only allowed in France by licensed operators. According to local media, the regulator has the power to ban access to unlicensed gambling sites and is expected to restrict access to Polymarket soon. 

An ANJ insider said: “Polymarket is just betting on something that is completely uncertain, which is exactly what gambling is.”

If put in place, the ban would prevent the usage of the application in France, despite the fact that users can still try to avoid the restriction by connecting to VPN. The ANJ could also try to influence media outlets and directories to stop advertising or linking to Polymarket and, thus, limit its audiences even more.

Regulatory Concerns Over Market Manipulation

The high level of activity on Polymarket has led to speculations that the platform may be used for market manipulation. Two blockchain analysis firms, Chaos Labs and Inca Digital, recently revealed that there was potential wash trading within Polymarket’s U.S. presidential betting market where the same assets are bought and sold to simply create a fake market. This type of trading is rather manipulative and can lead to the distortion of signals on the market and mislead other participants.

The US Commodity Futures Trading Commission also has concerns about prediction markets and put forward a rule in May aiming at stricter regulation of such markets due to the potential for manipulation.

Although no final decision has been reached, regulatory actions could impact Polymarket’s ability to operate freely in other markets, including the U.S.

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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.





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FTX Co Founder Gary Wang Appeals For No Jail Time, Here’s Why

Published

20 hours ago

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November 7, 2024

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FTX co-founder Gary Wang has requested a federal judge not to send him to prison. He noted that he is testifying against the former business partner, Sam Bankman-Fried, someone he has known for a long time in a fraud case.

The lawyer for Wang submitted a sentencing memo in Manhattan federal court wherein he claimed that his client should not be incarcerated as he provided assistance to the prosecutors as well as his role in the scheme was comparatively less.

Wang, who pleaded guilty to fraud and conspiracy when FTX went bankrupt in 2022, is to receive his sentencing on the 20th of November.

FTX Co-Founder Gary Wang Appeals for No Jail Time

The defense counsel for FTX co-founder Gary Wang highlighted his client’s early cooperation with the federal prosecutors as one of the key reasons why the court should consider him for mercy. According to Graff, Wang was one of the first FTX executives to meet with the authorities and share information on the FTX and Alameda Research. Wang gave a testimony in the trial that led to the recent conviction of Bankman-Fried who was sentenced to 25 years in prison.

Speaking at the trial, Wang described how he was ordered to change the code of FTX in order to enable Alameda Research to use the assets of the company’s clients, which is one of the key points of Bankman-Fried’s fraud.

FTX co-founder’s lawyer noted that his involvement in the fraud was less than some of the other former executives, including Caroline Ellison, former CEO of Alameda Research, and Nishad Singh, FTX’s former head of engineering. Wang, his lawyer said, did not start or operate the scheme and was not personally involved in the provision of false information to the investors.

“Gary was not involved in the scheme at its inception, was never provided with details of the scheme, and, in contrast to Bankman-Fried, Ellison and Singh, never engaged in any affirmative action of deception,” Graff wrote.

Sentencing Comparisons to Other Executives

Wang’s attorney argued that a prison sentence would create an “unwarranted sentencing disparity” with Nishad Singh, who avoided jail time after pleading guilty and cooperating with the government. Singh, who faced potential decades-long sentences, was ultimately sentenced to time served and three years of supervised release. 

Ellison, another major cooperator, received a two-year prison sentence. FTX co-founder Gary Wang contended that Wang’s level of involvement was even lower than Singh’s, supporting a non-custodial sentence for Wang as well.

Graff also noted Wang’s personal circumstances, stating that Wang is expecting the birth of his first child shortly after his sentencing date. Wang’s attorney suggested that allowing him to remain with his family would align with the court’s treatment of other cooperators in the case.

“Gary wants nothing more than to be a good husband and father and to continue his work to facilitate FTX victims’ recovery,” Graff wrote.

Separately, the U.S. government is working to reclaim approximately $13.25 million in political donations made by FTX executives, including Bankman-Fried and Singh.  Judge Lewis Kaplan however granted the government additional time to negotiate the return of these funds, extending discussions with the PACs until January 15, 2025.

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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.





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