SEC vs Coinbase (and all), Binance & CZ Sued, MicroStrategy pockets more Bitcoin and More!
This week’s issue covers events from 21 March to 27 March 2023.
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TL;DR:
Binance & CZ confronted with CFTC lawsuit
Texas aims to become a Bitcoin business hub
Australian regulators increase scrutiny on banks and crypto
Telegram now supports Tether (USDT) transfers
UAE announces its Central Bank Digital Currency strategy
SEC takes action against Justin Sun & Coinbase
Arbitrum Token records $2 billion trading volume in one day
Bitcoin mining difficulty reaches a new peak
Celebrities face repercussions for promoting crypto
G-7 countries to intensify global crypto regulations
MicroStrategy settles loan & acquires more Bitcoin
Investments in European DeFi startups surge
📕 This Week's Cover Story
SEC vs Coinbase (and virtually everyone): A Legal Showdown Shaping the Future of Crypto
Legal Battle Looms Over Crypto Regulations
Coinbase, the largest crypto exchange in the United States, is gearing up for a legal battle with the Securities and Exchange Commission (SEC). The SEC has issued a Wells Notice to Coinbase, claiming that the exchange violates US securities laws. While not a formal lawsuit, the Wells Notice typically precedes one. This case could set the stage for a precedent-setting case in the cryptocurrency industry.
A Defining Moment for Crypto
Former SEC attorney Marc Fagel believes that this legal battle could provide much-needed clarity on whether all digital assets, except Bitcoin, are unregistered securities. A ruling, in this case, could settle the long-standing debate once and for all.
Coinbase's Stance: A Call for Fair Treatment
Coinbase Chief Counsel Paul Grewal and CEO Brian Armstrong welcome the opportunity to defend the company's approach to crypto asset listings in court. They assert that the SEC has not been fair or reasonable in its engagement with digital assets. Coinbase reasserts that it does not list securities or offer products to customers that are securities.
The Existential Question: Commodity or Security?
Classifying crypto assets as commodities or securities is critical for the industry. Securities are subject to strict and expensive oversight, which could potentially hinder the growth of emerging companies. Confusion around this issue is widespread, and Congress has yet to provide legislative clarity.
Coinbase's Push for a Regulatory Framework
Coinbase claims that the SEC has ignored its attempts to create a framework for digital assets. The company developed and proposed two registration models, spending millions on legal support and seeking the SEC's feedback, which was never provided.
A Demand for Clear Rules and Registration Path
Coinbase insists that if the SEC provides a clear set of rules and an actual path to registration, they will comply. The resolution of any potential lawsuit could take years, but some clarity regarding the status of crypto assets may be on the horizon.
Coinbase Spearheads Crypto Regulations
Coinbase is not alone in its quest for new laws and regulations for crypto. The company spent nine months attempting to engage the SEC in discussions about crypto regulations and breaking new ground. As the tension between crypto proponents and regulators grows, this legal showdown could catalyze much-needed change in the industry.
The Conclusion: An Industry at a Crossroads
The impending legal battle between Coinbase and the SEC marks a crucial moment for the future of cryptocurrencies. As the case unfolds, it will provide insights and establish new regulations shaping the crypto landscape for years to come.
Stay tuned and follow us on Twitter as we follow this groundbreaking story.
More of This Week's Top Stories
⛏️ Bitcoin mining difficulty reaches a new peak
Bitcoin's mining difficulty rose by 7.56%, hitting a record high alongside the network's hash rate. This demonstrates that miners are dedicating more computational resources to the network.
📱 Telegram now supports Tether (USDT) transfers
Telegram users can now send each other tether (USDT), the largest stablecoin by market cap, within the chat application, simplifying peer-to-peer transactions.
💼 Texas aims to become a Bitcoin business hub
The Texas legislature has proposed a bill to attract more Bitcoin-related enterprises to the state and protect the rights of Bitcoin users, miners, and developers.
🌟 Celebrities face repercussions for promoting crypto
US regulators have recovered funds earned by celebrities such as actress Lindsay Lohan and boxer Jake Paul for promoting cryptocurrencies. This is part of an ongoing effort to hold public figures accountable for endorsing digital assets violating investor protection laws.
🇦🇺 Australian regulators increase scrutiny on banks and crypto
Australia's Prudential Regulation Authority (APRA) reportedly requires banks to disclose their exposure to startups and crypto-related businesses daily, indicating heightened scrutiny in the sector.
🏛️ Binance & CZ confronted with CFTC lawsuit
Binance Holdings Ltd. and CEO Changpeng Zhao (CZ) are facing a lawsuit filed by the US Commodity Futures Trading Commission (CFTC) over alleged violations of trading and derivatives regulations. The lawsuit was submitted in a federal court in Chicago.
💻 UAE announces its Central Bank Digital Currency strategy
The Central Bank of the United Arab Emirates has revealed its Central Bank Digital Currency (CBDC) strategy, "The Digital Dirham," marking a significant step in the country's digital finance efforts.
🚨 SEC takes action against Justin Sun & Coinbase
The US Securities and Exchange Commission (SEC) has charged Justin Sun with selling and airdropping unregistered securities, fraud, and market manipulation. Coinbase received a Wells notice from the SEC in a separate case, indicating the regulator's intention to enforce action against the largest US cryptocurrency exchange.
🚀 Arbitrum ($ARB) records $2 billion trading volume in one day
Arbitrum Native Token ($ARB) witnessed an impressive trading volume of over $2 billion within just 24 hours of going live, showcasing strong market interest in the token.
📈 Investments in European DeFi startups surge
In 2022, European decentralized finance (DeFi) startups raised $1.2 billion, representing a 120% increase compared to the previous year's investment of $534 million. This highlights the growing interest and confidence in the European DeFi ecosystem.
🌍 G-7 countries to intensify global crypto regulations
The Group of Seven (G-7) nations are working to strengthen global crypto regulations, focusing on enhancing business transparency and safeguarding consumer protection in the rapidly evolving space.
💰 MicroStrategy settles loan & acquires more Bitcoin
MicroStrategy has prepaid the remaining principal on its $205 million loan from the now-defunct, crypto-focused Silvergate Bank. Additionally, the company announced the purchase of another 6,455 bitcoins for approximately $150 million.
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