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Why SEC Is Unlikely To Probe Roaring Kitty As He Exploits Loophole

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Keith Gill, better known by his online moniker “Roaring Kitty,” is back in the spotlight for his trading activities involving GameStop Corp. (GME). However, Gill is reportedly leveraging a loophole in market regulations, causing concern among market experts. Moreover, legal experts believe that the SEC can’t target Roaring Kitty due to the ‘gap in rules’.

Legal Experts On SEC Vs Roaring Kitty

Daniel Hawke, a partner at Arnold & Porter Kaye Scholer and former head of the SEC’s market abuse unit, commented on the matter. He said, “What he’s doing is exploiting a gap in the rules.” This statement underscores the intricacies of Roaring Kitty’s actions, which, while controversial, appear to exploit regulatory grey areas rather than outright breaking the law.

Gill’s influence over retail investors is substantial. He uses his online presence and celebrity status to draw attention to GameStop, encouraging a surge in trading activity. Yet, as Hawke noted, “The rules that exist do not permit the SEC to prosecute that conduct unless there is an element of deception.”

Unlike traditional pump-and-dump schemes, Gill does not explicitly endorse investing in GameStop or make unfounded claims about its financial health. Instead, his posts are often cryptic memes or updates on his trading position. This complicates the SEC’s ability to pursue a case against him.

Moreover, the ambiguity surrounding Roaring Kitty’s actions leaves a significant grey area in market regulation. Furthermore, some market observers accused Gill of market manipulation. On the contrary, others argue that his conduct is not significantly different from that of Wall Street fund managers who publicly discuss their holdings.

Steve Sosnick of Interactive Brokers remarked that Gill’s actions resemble those of an activist investor. This brings into question the fine line between market manipulation and advocacy. Whilst, American Economic Liberties Project’s Matt Stoller took a firmer stance. He stated, “This is obviously market manipulation.”

The flurry of opinions highlights the controversy and complexity of Gill’s situation. Now, the challenge for the SEC is to determine whether Roaring Kitty’s influence and trading activity amount to deception, a key element required for any potential prosecution.

Also Read: GameStop Price Prediction as Roaring Kitty Plans Livestream

Controversy Escalates As Options Data Gets Disclosed

Meanwhile, Roaring Kitty’s trading position in GameStop remains substantial. According to a post on his Reddit account, he holds $557 million in shares and options contracts. However, questions about his trading activities persist, such as whether he is backed by other investors and how he financed his GameStop purchases.

The scale of Roaring Kitty’s position and the scrutiny it attracts add another layer of complexity to his trading strategy and its potential ramifications. The controversy intensified after renowned investor Ross Gerber cautioned Gill about his short-term position in GameStop.

Moreover, Gerber highlighted the risks Gill faces, particularly with his $115.7 million stake in GameStop, including $65.7 million in call options expiring on June 21. In a post on X (formerly Twitter), Gerber stated, “Kitty better be careful exposing such a short-term position with so many enemies. Where would he get all the money… he’s got to sell the options soon.”

Furthermore, SEC Chair Gary Gensler addressed questions about Gill’s activities. He also emphasized that while disclosure is crucial, it “doesn’t necessarily protect a bad actor.” This stance reflects the broader regulatory concern about the need for transparency without providing a shield for potentially harmful market behaviors.

Experts have also pointed out the challenges Roaring Kitty might face in cashing out his GameStop options. The number of open contracts in GameStop surged to 145,000 by the end of May, a significant increase from the 15,000 recorded earlier in the month. Hence, the size of Gill’s position and the heightened attention on GameStop could complicate selling the options or taking delivery of the underlying shares, potentially reducing their value.

Also Read: Meme Coin GameStop ($GME) Jumps 118%, Roaring Kitty Eyes Billionaire Status

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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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Ex-SEC Lawyer Says XRP Lawsuit Settlement Weeks Away

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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

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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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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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

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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