News summarizing the blockchain & cryptocurrency market – May 7
CFTC Chairman warned that the crypto industry will continue to be subject to legal repression in the next 2 years
US Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam has warned that the crypto industry will continue to face regulatory pressure over the next two years. He said that the rising prices of the cryptocurrency market coupled with an unclear regulatory environment will create conditions for regulatory enforcement measures. Mr. Behnam also commented that without a legal framework and transparency, fraud and market manipulation will continue. He also emphasized that finalizing crypto legislation is facing difficulties and that the probability of stablecoin legislation in the near future is quite low. Securities regulators have also issued warnings and enforcement actions related to cryptocurrency trading on platforms such as Robinhood and Consensys. The CFTC and SEC both agree that the cryptocurrency industry needs specific regulatory laws and the removal of bad actors.
SEC continues to delay approval of Invesco's Ethereum spot ETF
The US Securities Commission (SEC) has decided to continue rescheduling the approval of Invesco's Ethereum spot ETF. The deadline for the SEC to make a decision is July 5, 2024. Hopes for the launch of an Ethereum spot ETF have decreased recently. The SEC has delayed the approval or rejection of Invesco Galaxy's proposal and needs more time to evaluate the relevant legal and policy issues before making a final decision. The SEC has been similarly skeptical of other Ethereum spot ETF proposals from Grayscale, Franklin Templeton, VanEck, Fidelity and BlackRock. Currently, there is no clear signal that the SEC will approve an Ethereum spot ETF, and the probability of such a product has dropped to about 11%.
SEC warns Robinhood Crypto of possible securities law violations
The US Securities and Exchange Commission (SEC) has warned Robinhood Crypto of possible securities law violations. Robinhood Markets Inc., a financial trading platform, received a Wells Notice from the SEC and proposed enforcement action, alleging violations of Sections 15(a) and 17A of the Securities Act of 1934. Robinhood Markets has stated that it has been working with the SEC for years to clarify regulations, but it is disappointed with the decision. Robinhood Crypto is a cryptocurrency trading platform and is said to hold large amounts of Bitcoin and Ethereum. The SEC has taken numerous regulatory actions against companies and individuals in the cryptocurrency industry, and the warning against Robinhood Crypto is the latest example of increased regulation and compliance with securities laws in the sector. This.
