Ripple’s appeal against the SEC is moving forward with key deadlines set for 2025.  

SEC’s response to Ripple’s case could be delayed by a potential U.S. government shutdown.  

Ripple remains confident despite ongoing challenges and appeals in the XRP lawsuit.

The Ripple vs. SEC lawsuit appeal is moving forward, with the Ninth Circuit Court of Appeals scheduling key dates for 2025.

#XRP NEWS FLASH Ripple gets a new date from the US court of appeal against the SEC

This is a new development according to a close source, as the dragging lawsuit comes to an end on Monday, the 23rd of Dec 2024.

YES!!! WE DID IT WE WON $XRP pic.twitter.com/yNf9hWyGY6

— RippleLord (@Ripplelordz) December 21, 2024

However, a potential U.S. government shutdown looms, threatening to delay the already protracted legal battle and a final resolution on XRP’s regulatory status. As the crypto community watches closely, the court has set a March 6, 2025 date for the appeal, with Ripple and CEO Brad Garlinghouse expected to file their answering briefs by April 7, 2025.

Key Dates: Mediation and Transcript Orders

Before the main event in 2025, plaintiff Bradley Sostack must file…

The post Delayed Justice? Ripple vs. SEC Lawsuit Appeal Faces Shutdown Threat appeared first on Coin Edition.

The post XRP Lawsuit News: Ex-SEC Lawyer Reveals Ripple Was Discussed Weekly, Predicts Possible Dismissal of Appeal appeared first on Coinpedia Fintech News

There are rumors that Ripple and the SEC will have a closed meeting, which could lead to a significant development in the XRP case. Speculation suggests that the meeting may result in the case being closed or dropped entirely, with answers expected soon.

A user reacted to this, praising the XRP community for its unwavering perseverance. Despite being wrong many times, the community continues to stay positive and hopeful, showing up every month for updates.

Former SEC lawyer Marc Fagel weighed in, saying he has attended hundreds of these meetings, and Ripple has been a topic of discussion in almost every single one.

He wrote on X,

“I started attending in the late 1990s, and they were already talking about settling with Ripple. It’s always been a highlight of the weekly meeting.”

Fagel believes the SEC will continue on its current path for now, filing the opening brief as planned. He also pointed out that the new SEC chair could take some time to be confirmed, and it’s possible that they may vote to dismiss the appeal. Though it’s an unusual step, Fagel thinks it’s a possibility if the right people are in charge.

I think they continue on the current path (i.e. file the opening brief as scheduled) for now. It'll take time for the new Chair to be confirmed. Does the new SEC then vote to dismiss the appeal? Maybe. It's highly unprecedented, but I can see Atkins/Peirce/Uyeda taking that step.

— Marc Fagel (@Marc_Fagel) December 20, 2024

Also Read :

  SEC Commissioner Hester Peirce Signals SEC’s Shift Toward Pro-Crypto Innovation

  ,

SEC’s Shutdown, RLUSD Live and More

In other news, the SEC is preparing for a government shutdown, which could impact its operations. Government shutdowns and financial instability, like the US government’s debt issues, have added pressure on the market.

Ripple’s RLUSD launch had positive price action initially but has since been impacted by market downturns. Brad Garlinghouse, Ripple’s CEO, believes RLUSD will be big for the company’s future. With SEC’s clarity and possible case dismissal, XRP might be up for a massive rally.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

Subscribe to News

Pro-Ripple (XRP) attorney and Republican John Deaton shared a TikTok video on his X account, which featured American comedian Jon Stewart raising the alarm over the US Department of Defence’s “unmonitored” spending. Deaton quoted the video, saying it is why Elon Musk-led D.O.G.E. is “necessary.”

Stewart highlighted the disconnect between the Pentagon’s budget and the realities faced by service members. “We got out of 20 years of war, and the Pentagon got a raise,” Stewart remarked. “I can’t figure out how $850 billion to a department means that the rank and file still have to be on food stamps. To me, that’s f*cking corruption.”

Dragonchain attorney and pro-crypto Republican John Deaton quoted a TikTok video that included an interview on his X account, saying, “If you think Elon Musk and Vivek Ramaswamy’s D.O.G.E isn’t necessary, watch this.”

Deaton, who also supports XRP, seemingly suggested that the Department of Government Efficiency (D.O.G.E.) could bring much-needed accountability to departments like the Pentagon.

Legal tensions in the US SEC’s crypto cases

Deaton’s criticism extended to the ongoing legal conflict between the US Securities and Exchange Commission (SEC) and various crypto firms, including the case against Dragonchain. The SEC has accused Dragonchain of unregistered crypto asset security offerings, just like it had done to Ripple Labs and its token XRP.

In a recent court filing related to the SEC’s case, Deaton lashed out at the agency’s aggressive tactics, claiming that certain SEC lawyers continue to bully American entrepreneurs, especially those in the crypto sector.

“Certain lawyers at the SEC are continuing their bully tactics in non-fraud crypto cases against American entrepreneurs,” Deaton said on X. He added that Dragonchain, which originated from Disney, is “as American as it gets.” 

Certain lawyers at the @SECGov are continuing their bullying tactics in non-fraud crypto cases against American entrepreneurs. @dragonchain originated out of Disney. You don’t get more American than that. @GaryGensler and his cronies won’t do what’s right, so we fight. https://t.co/LsOT5E8WXj

— John E Deaton (@JohnEDeaton1) December 21, 2024

The court filing also raised concerns about the SEC’s current approach to litigation, citing upcoming changes in leadership that could affect the agency’s strategy. 

“There are fast-approaching changes to SEC leadership and enforcement priorities,” the filing read. “This case meets those criteria,” referencing an expected shift away from litigation that does not involve investor fraud or imminent harm.

Shifting SEC leadership

As Deaton and other legal experts continue to challenge the SEC’s enforcement strategies, the agency itself is undergoing a period of transition. The departure of SEC Chair Gary Gensler, who has been heavily involved in crypto-related enforcement, has sparked speculation about the future direction of the agency. 

Gensler’s tenure has been marked by aggressive actions against cryptocurrency firms, including high-profile lawsuits against Ripple, Coinbase, and Binance.

John Reed Stark, former chief of the SEC’s Office of Internet Enforcement, criticized Gensler’s approach, suggesting that the financial authority’s leadership has become too entrenched in aggressive enforcement tactics. Stark noted the promotion of several senior enforcement officers who have been at the forefront of the agency’s crypto crackdown.

“SEC Chair Gary Gensler is clearly attempting to pilot the SEC Enforcement Division from the grave,” Stark remarked. “Since Donald Trump’s election, Gensler has promoted five Senior Officers within the SEC Enforcement Division at SEC Headquarters. Four of these SEC enforcement staff cut their teeth as SEC crypto-enforcement superstars.”

Stark speculated that the incoming leadership, expected to follow a pro-crypto agenda, could bring about significant changes in the way the agency handles crypto enforcement cases. However, he warned that seasoned enforcement staff might face challenges in adapting to new policies.

However, the incoming pro-crypto agenda under the regulator’s chair nominee Paul Atkins may signal a shift in how the agency handles such cases moving forward. Under this new leadership, the SEC could change its approach to enforcement, particularly in cases involving companies like Ripple, Coinbase, and others embroiled in similar legal battles.

A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

SEC fines Tai Mo Shan $123M for misleading investors about TerraUSD’s stability.

Tai Mo Shan violated laws by selling unregistered securities via LUNA token trades.

TerraUSD collapse exposes gaps in crypto transparency and regulatory oversight needs.

Deceptive practices surrounding TerraUSD (UST) have landed Tai Mo Shan Limited, a subsidiary of Jump Crypto Holdings LLC, in hot water with the SEC, resulting in a $123 million settlement. The Tai Mo Shan TerraUSD deception involved misleading investors about the stablecoin’s stability and selling unregistered securities.

This $123 million settlement serves as a stark reminder that the cryptocurrency market, often touted as a hub of financial innovation, can also be a breeding ground for costly scandals.

TerraUSD’s Downfall and Investor Deception

TerraUSD was introduced as a stablecoin pegged to the U.S. dollar, promising unwavering stability. Tai Mo Shan reassured investors that Terraform Labs’ algorithm ensured this peg. But, in May 2021, UST lost its dollar peg, eroding investor confidence.

Tai Mo Shan intervened with $20 million worth of trades to restore the peg temporarily. While the effort succe…

The post Tai Mo Shan’s TerraUSD Deception Turns Costly: SEC Imposes $123M Penalty appeared first on Coin Edition.

The post XRP lawsuit: Key U.S. Court Dates Revealed Amid SEC Shutdown Fears! appeared first on Coinpedia Fintech News

The U.S. Court of Appeals has just revealed key dates for the explosive lawsuit filed by Bradley Sostack against Ripple. In the meantime, the US Securities and Exchange Commission (SEC) is working to file its main brief before Chairman Gary Gensler leaves, but a potential government shutdown may cause delays. Here’s Why!

Ripple Lawsuit: Key Dates Set

The U.S. Court has ordered Plaintiff Bradley Sostack to submit a Mediation Questionnaire by December 23 similar to the US SEC appeals filing. Following that, the court expects the Appeals Transcript Order by December 31, and the full transcript by January 30. 

Meanwhile, Sostack will file his opening brief on March 6, 2025, outlining his claims against Ripple and its CEO, Brad Garlinghouse. 

Although Ripple Labs, XRP II, and Garlinghouse’s response is due by April 7, 2025. If either party fails to meet these deadlines, the appeal could be dismissed. 

Previous Court Rulings

The recent announcement follows earlier court rulings that have been favorable to Ripple. Despite this, Bradley Sostack is still pushing forward with his claims. Judge Phyllis Hamilton recently approved a motion to amend the decision about judgment and the stay in the case

Both sides proposed a new order, agreeing there was no need to postpone the judgment since the class claims were already settled.

SEC Prepares for Shutdown

In the meantime, the Securities and Exchange Commission (SEC), which is also involved in the Ripple lawsuit, faces challenges of its own. The U.S. government is approaching a potential shutdown due to budgetary issues. 

The situation could delay the SEC’s response to the appeal, with some analysts predicting that the ongoing legal battle could be paused. This delay might relieve some immediate pressure on Ripple, but it could also push back any resolution that might bring clarity to the regulatory status of XRP.

Ripple and the SEC's closed-door meeting may influence the XRP case, with potential dismissal or settlement being discussed.

Former SEC lawyer Marc Fagel revealed Ripple has been a recurring topic in SEC meetings since the late 1990s.

A government shutdown may delay SEC operations, impacting the Ripple case and broader financial market stability.

Ripple and the U.S. Securities and Exchange Commission (SEC) are reportedly set for a closed-door meeting, fueling speculation about a possible resolution in the XRP case. Discussions surrounding the case have intensified as market observers consider the implications of such a meeting.

However, while no official statements have been released, analysts believe the outcome could significantly influence the future of XRP and the broader cryptocurrency market.

https://twitter.com/Marc_Fagel/status/1870180416570962133 XRP Community Remains Resilient Amid Legal Uncertainty

Notably, the XRP community has displayed unwavering perseverance throughout the legal battle. Despite facing setbacks and numerous delays, supporters remain optimistic about a favorable outcome. This latest development has reignited hope among enthusiasts who continue to monitor updates closely. 

Additionally, a community member praised the resilience of XRP supporters, emphasizing their dedication to staying informed about every development. Marc Fagel, a former SEC lawyer, commented on the matter, revealing that Ripple has been a frequent topic of discussion at SEC meetings for decades.

Also, he shared that settlement talks have been a recurring highlight at weekly meetings since the late 1990s. Fagel noted that while the SEC appears committed to its current course of action, the possibility of a case dismissal remains, especially with potential changes in SEC leadership.

Government Shutdown Could Impact SEC Operations

Moreover, the potential government shutdown has also raised concerns about its impact on the SEC’s operations and the Ripple case. The SEC is preparing for possible disruptions, which could delay progress in the case and other ongoing matters. 

Financial instability, including the U.S. government’s debt concerns, has added further pressure on the markets, making regulatory clarity even more critical.Ripple CEO Brad Garlinghouse remains optimistic about the future of Ripple and its new RLUSD launch.

Initially, RLUSD saw positive price action but has since been affected by broader market downturns. Despite these challenges, Garlinghouse believes the product holds significant potential for Ripple’s growth.

Ripple Case Outcome Could Shift Market Dynamics

Furthermore, market analysts are closely watching the Ripple case, as its resolution could set a precedent for cryptocurrency regulation in the United States. A dismissal or favorable outcome for Ripple might boost XRP’s price and restore confidence in the crypto market.

However, the SEC’s next steps remain uncertain, and its leadership transition could further influence the case’s trajectory.

The post XRP Lawsuit Update: Ex-SEC Lawyer Reveals Weekly Ripple Discussions, Foresees Potential Appeal Dismissal appeared first on Crypto News Land.

Tai Mo Shan Ltd. pays $123 million for misleading TerraUSD investors.

SEC underscores crypto market compliance and investor protection.

The U.S. Securities and Exchange Commission (SEC) has fined Tai Mo Shan Ltd., a subsidiary of Jump Crypto, $123 million for misleading investors about TerraUSD’s stability. TerraUSD, an algorithmic stablecoin issued by Terraform Labs, collapsed in May 2022, wiping out $40 billion in investor assets.

Tai Mo Shan’s actions during TerraUSD’s collapse have drawn severe scrutiny. The SEC accused the company of purchasing $20 million worth of TerraUSD to falsely stabilize its $1 peg. These trades gave the impression that the stablecoin’s algorithmic mechanisms function properly, deceiving the market.

The SEC also alleged Tai Mo Shan’s involvement in unregistered securities offerings. It underwrote TerraUSD’s sister token, Luna, which the regulator considers a security. From early 2021 to May 2022, the company profited from these transactions and supported Terraform’s ecosystem.

Settlement and Regulatory Fallout

According to the SEC, Tai Mo Shan’s trading created a false sense of stability during a critical period. The regulator emphasized that the firm should have known these actions misled investors. SEC Chair Gary Gensler highlighted the case as another example of significant investor losses caused by fraud in crypto markets.

Tai Mo Shan agreed to settle without admitting or denying the allegations. The settlement includes $73.5 million in disgorgement, $12.9 million in prejudgment interest, and $36.7 million in civil penalties. The company has also agreed to cease further violations of U.S. securities laws.

According to court filings, the firm reaped over $1 billion in profits from its involvement. Kanav Kariya, the former head of Jump Crypto, resigned in June 2024 amid regulatory investigations. The collapse of TerraUSD and Luna remains one of the crypto industry’s most infamous disasters. 

Highlighted Crypto News TodayPeter Schiff Proposes ‘USA Coin’ as Alternative to Strategic Bitcoin Reserve

Jump Crypto’s wholly-owned subsidiary, Tai Mo Shan, has agreed to a $123 million settlement with the US Securities and Exchange Commission (SEC) for its role in misleading investors about the stability of the TerraUSD (UST) stablecoin.

Jump Crypto, a subsidiary of the Chicago-based proprietary trading firm Jump Trading, was integral to Terra’s ecosystem. The firm is currently under investigation by the US Commodity Futures Trading Commission (CFTC).

Tai Mo Shan Settles With SEC for Misleading TerraUSD Claims

On December 20, the SEC highlighted Tai Mo Shan’s deceptive practices during the UST depegging crisis. The firm attempted to stabilize UST by purchasing over $20 million of the stablecoin.

SEC claimed that this falsely signaled to the market that Terra algorithmic mechanisms were effectively maintaining its value. However, this action failed to prevent the widespread disruption and significant investor losses triggered by the depegging event.

Furthermore, the SEC charged Tai Mo Shan with acting as a statutory underwriter for Terra Luna token. The agency asserted that the firm managed these assets as securities through unregistered transactions. Their strategy involved planning the distribution of these tokens on US-based trading platforms from January 2021 to May 2022.

SEC Chair Gary Gensler emphasized the broader impact of the incident, stating:

“[The impact of UST deppging] reverberated throughout the crypto markets, eventually costing the savings of countless investors. Regardless of the labels, crypto market participants should comply with the securities laws where applicable and not deceive the public. Otherwise, investors get hurt.”

Tai Mo Shan will pay $73,452,756 in disgorgement, $12,916,153 in prejudgment interest, and a $36,726,378 civil penalty as part of the settlement. The firm did not admit to or deny the SEC’s findings but agreed to a cease-and-desist order to prevent future violations of registration and fraud provisions.

This settlement comes shortly after Terraform and its founder Do Kwon were found liable for fraud and unregistered securities offerings. They agreed to a substantial $4.5 billion payment to compensate affected investors.

In January 2024, Terraform Labs declared bankruptcy. Following this, the company transferred control of the Terra blockchain to the community and discontinued a number of its products and services.

Take a look at what's happening in the world of crypto by reading U.Today’s top three news stories.

SEC preparing for shutdown

According to the SEC's recentalert, it is currentlypreparing for a potential federal government shutdown. The agency has stated that it will focus on essential functions, particularly those related to market integrity and investor protection, while its internal EDGAR database system, which is used for tracking government filings, will remain operational. However, nonessential operations will be suspended during the shutdown. On Wednesday, the House of Representatives delayed a vote on a bipartisan government funding bill, which raised concerns about a potential shutdown. Such a scenario would result in government employees not receiving their pay during the holidays, while also causing disruptions to various services, including food assistance. Besides, the SEC may cease routine reviews of filings, such as ETF applications, although it will continue to pursue cases of fraud and market manipulation.

Shiba Inu (SHIB) whales selling rapidly: Details

Yesterday, Shiba Inu witnesseda significant sell-off, as a SHIB whale liquidated 250 billion SHIB, valued at approximately $6.05 million. This whale entered the Shiba Inu market back in August 2020, purchasing 15.28 trillion SHIB, which peaked at a value of $1.22 billion. The total profit realized by the investor over the course of their holdings constitutes $109 million, and they still retain 2.15 trillion SHIB, worth around $52.18 million. The recent liquidation raises concerns about changing whale behavior, which can influence retail market sentiment and increase volatility. At writing time, SHIB is changing hands at $0.00002041, down 15.94% over the past 24 hours; the asset failed to maintain both support levels at $0.00002283 and $0.00002045, which may indicate potential further declines.

Millions of RLUSD ready to hit market after recent launch

Following the launch of the much-anticipated RLUSD stablecoin earlier this week, Ripple continues minting stablecoins, withover 10 million RLUSD created over the previous two days. According todata provided by the Ripple Stablecoin Tracker, more than 10.3 million RLUSD were transferred in batches, including 1.5 million sent from the Ripple Treasury to the Lithuania-based crypto exchange Uphold. Meanwhile, Ripple President Monica Long spoke on the freshly launched RLUSD in a recent interview. She highlighted the stablecoin market's current valuation of approximately $160 billion, and it is predicted that it could grow to around $3 trillion within the next four years. Long emphasized the increasing demand for stablecoins that focus on regulatory compliance, diversification and utility, all of which RLUSD aims to provide. She believes that for Ripple, the launch of RLUSD is another big step in continuing to “bridge the gap between traditional finance and blockchain.”

The U.S. Securities and Exchange Commission (SEC) has imposed a $123 million fine on Tai Mo Shan Limited, a subsidiary of Jump Crypto Holdings, for its role in misleading investors about the stability of TerraUSD. 

The firm also faced charges of conducting unregistered securities transactions linked to the sale of LUNA, a token issued by Terraform Labs.

Allegations of fraud and investor deception

According to the SEC, Tai Mo Shan used deceptive practices to stabilize TerraUSD, a so-called algorithmic stablecoin developed by Terraform Labs. When TerraUSD lost its $1 peg in May 2021, Tai Mo Shan purchased over $20 million of the token to restore its value artificially. This gave investors the false impression that the algorithm maintaining TerraUSD’s stability was functioning properly. SEC Chair Gary Gensler emphasized that these actions misled the public and resulted in widespread financial losses in the crypto market.

The SEC also found that Tai Mo Shan acted as a statutory underwriter by participating in the sale of LUNA, which the regulator has classified as a security. These activities were conducted without proper registration, violating federal securities laws.

Settlement details

Tai Mo Shan agreed to pay a total settlement of $123 million without admitting or denying the allegations. This includes $73.45 million in disgorgement, $12.91 million in prejudgment interest, and a $36.72 million civil penalty. The firm has also agreed to cease from further violations of securities laws.

The SEC’s investigation revealed that Jump Crypto profited significantly from its involvement with Terraform Labs, reportedly earning up to $1 billion. This financial relationship contributed to Terraform’s efforts to maintain TerraUSD’s stability, which eventually collapsed, triggering a broader crisis in the cryptocurrency market.

Impact of the TerraUSD collapse

The failure of TerraUSD and its associated ecosystem had far-reaching consequences, wiping out $40 billion in investor assets. Terraform Labs faced separate SEC litigation, ultimately agreeing to pay $4.5 billion to settle claims related to its role in the collapse. Jump Crypto’s intern-turned-president, Kanav Kariya, was also linked to the project through his involvement with the Luna Foundation Guard, which managed TerraUSD’s reserves.

The case against Jump Trading highlights the ongoing challenges in regulating the cryptocurrency industry. It reminds us of the risks posed by unregulated practices and the importance of transparency to protect investors in digital asset markets.

The post SEC Fines Jump Trading $123 Million Over TerraUSD and Luna Misconduct first appeared on Coinfea.

The Nigerian Securities and Exchange Commission (SEC) has announced new laws that will regulate the practices of crypto influencers in the country. This new regulation represents an update to the previous rules governing the industry. Per the new development, all crypto platforms must obtain a license from the body before they can carry out any promotional activities. This includes promotion across TV, radio, social media, and other print media.

As part of the requirements, crypto influencers are mandated to disclose any financial benefits they enjoy for promoting a platform or asset. The statement revealed that non-compliance could land perpetrators a 10 million naira fine or up to three years in jail. The new regulation will take effect on June 30, 2025. The new SEC laws have been seen as a needed purge for the crypto industry in Nigeria, removing exploitative practices.

Nigeria SEC law on crypto influencers explained

According to the document titled “Specific Requirements for Third-Party and Social Media Promotions,” any crypto company that wants to engage the services of influencers must first forward a written letter to the commission. The SEC also said the influencers must adhere strictly to the rules set out, noting that the platform must ensure that the rules are followed.

The commission mentioned that the influencers involved must first provide a detailed copy of the agreement letter before it is endorsed. They must also ensure that the products and platforms that they intend to influence have obtained all the needed license from the needed licenses from the commission. Influencers are also mandated to reveal to their followers if they were paid for their services or kit before carrying out the said service.

Finally, the SEC said it will continue to monitor promotional activities in the sector to ensure that they are in line with the Commission’s regulations. In the case that any company or influencer is caught in violation of its rules, the SEC said it will sanction the affected parties which will include financial penalties and other sanctions. The commission also promised to carry out a periodic review of its rules to ensure they are in line with global trends, promoting innovation in the industry.

Industry experts discuss the Nigeria SEC’s new rule

Prominent crypto analysts have discussed the new rule, with most of them giving their honest reviews about its flaws. One such is crypto educator Rume Ophi. According to Ophi, the new laws will ensure integrity in the industry, noting it as a step forward.

“Before now, the industry had seen numerous instances of bad actors exploiting the lack of regulation, leading individuals to significant financial losses. Introducing a policy that requires promotions to come from licensed entities will significantly reduce the number of questionable projects being advertised,” Ophi said.

According to Ophi, there is always a case of most technology industries being threatened by bad actors, and the crypto industry is not an exception. As such, there is a need to establish the needed laws to check the activities of the people promoting entities and products in the sector.

In addition, the SEC Chairman has expressed his gratitude to President Bola Ahmed Tinubu for his pro-crypto stance and support for the industry. He mentioned that his appointment as the SEC Chair was made possible through the influence of the president. According to the SEC, two crypto firms, Busha and Quidax are the first firms to secure a license of operation in the country, highlighting a new crypto atmosphere in the country.

Meanwhile, the government’s perception of crypto remains relatively unknown. While there is a ban on the assets, the country has ranked as one with the highest adoption rate in the continent. However, most of these transactions happen via peer-to-peer, with most banks unwilling to provide their services to crypto platforms citing the government’s orders.

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

Gary Gensler will leave his SEC role in January 2025 after years of focused crypto enforcement.  

The SEC now faces delays in policies as leadership awaits Trump’s nomination for a new chair.  

The crypto industry remains in uncertainty over rules as the SEC struggles to define digital assets clearly.  

Gary Gensler has announced he will step down as Chair of the U.S. Securities and Exchange Commission (SEC) on January 20, 2025. His tenure, which began in April 2021, was defined by strict enforcement actions targeting the cryptocurrency industry. During this time, the SEC pursued 96 cases addressing alleged fraud, wash trading, and violations of registration requirements in the crypto market.  

https://twitter.com/AbsGMCrypto/status/1870183973898293527

This announcement comes during a time of challenges for the SEC as it faces unresolved regulatory questions and legal setbacks.  

Gensler’s Leadership and Focus on Crypto Enforcement  

Gary Gensler’s time as chair saw the SEC prioritize enforcement in the cryptocurrency sector while dealing with mounting industry pushback. According to SEC data, 18% of complaints and tips in the last fiscal year were crypto-related, although the crypto market makes up less than 1% of the U.S. capital markets.  

The courts consistently upheld the SEC’s enforcement actions aimed at protecting investors, but many companies like Ripple and Coinbase struggled with regulatory uncertainty. Gensler remained firm on his stance against cryptocurrencies, and during a speech at NYU’s School of Law in October, he noted that several key industry figures faced legal troubles or extradition.  

These developments created ongoing tensions between regulators and the industry, which sought clearer rules and guidelines for compliance.  

Uncertainty Looms as SEC Prepares for Transition

With Gensler’s resignation, the SEC now faces a leadership gap that could stall major decisions until a new chair is appointed. The Commission is currently evenly split between Republican and Democratic members, and this makes progress on new policies or enforcement actions unlikely in the short term.  

President Trump is expected to nominate Gensler’s successor, with potential candidates like Teresa Goody Guillén and Brian Brooks being widely speculated. This transition period is seen as critical since the incoming chair’s approach could shape the future of cryptocurrency regulations in the United States.  

Additionally, Trump’s former SEC chair Jay Clayton has been appointed as U.S. Attorney for the Southern District of New York, which signals a broader focus on prosecuting financial crimes.  

The SEC Faces Growing Regulatory and Legal Pressures  

The timing of Gensler’s resignation coincides with a recent legal defeat for the SEC in the Fifth Circuit. The court ruled against the agency’s attempt to broaden the definition of a “dealer,” which had faced strong opposition from crypto lobbyists.  

Meanwhile, though the SEC approved Bitcoin and Ethereum spot ETFs, it has yet to address the broader question of whether cryptocurrencies should be classified as securities. This lack of clarity leaves the crypto industry in a state of regulatory uncertainty as it waits for clearer guidance under new leadership.  

The post Gary Gensler to Resign as SEC Chair Amid Key Crypto Regulation Shifts  appeared first on Crypto News Land.

U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce, a prominent advocate for clear and balanced cryptocurrency regulation, has shed light on a possible shift in the agency’s crypto policy. Speaking in a conversation reported by Coinage’s X account, Peirce discussed the evolving regulatory landscape, the transition period following SEC Chair Gary Gensler’s departure, and the prospects for a more pro-innovation SEC.

This potential shift signals hope for the crypto industry, which has faced scrutiny and uncertainty under the current regulatory regime.

Hester Peirce: A Voice of Reason in Crypto Regulation

Known as “Crypto Mom” within the industry, Hester Peirce has consistently advocated for pragmatic and innovation-friendly crypto policies. Her views often contrast with the SEC’s historically cautious approach to digital assets.

Peirce’s latest comments underscore the importance of fostering a regulatory environment that balances investor protection with innovation.

Peirce’s Advocacy for Clarity

Clear Guidelines: Peirce has repeatedly called for clear, transparent regulations to prevent stifling innovation.

Innovation-Friendly Stance: She emphasizes the need for policies that encourage growth in the blockchain and cryptocurrency sectors while addressing risks effectively.

Anticipated Changes in SEC Leadership

The impending departure of SEC Chair Gary Gensler is a pivotal moment for the agency. Under Gensler’s leadership, the SEC adopted a stringent approach toward cryptocurrencies, targeting major players and enforcing rules on various crypto activities.

What to Expect Post-Gensler

Shift Toward Pro-Innovation Policies: Peirce’s comments suggest that the new leadership might adopt a more balanced approach, focusing on fostering innovation while ensuring compliance.

Regulatory Modernization: The SEC could streamline outdated regulations to address the unique aspects of blockchain and digital assets.

Industry Engagement: A more collaborative relationship between regulators and the crypto industry may emerge, paving the way for mutually beneficial policies.

Key Topics Discussed by Peirce

Peirce touched on several critical issues that could shape the SEC’s crypto policy going forward:

1. The Pace of Change

The regulatory landscape for crypto has been evolving rapidly, often leaving market participants uncertain about compliance requirements. Peirce acknowledged the need for the SEC to adapt more quickly to emerging technologies.

2. Transition Challenges

With new leadership on the horizon, Peirce highlighted the importance of ensuring a smooth transition period. This includes aligning the SEC’s goals with the broader push for U.S. leadership in blockchain innovation.

3. Balancing Risks and Opportunities

Peirce emphasized that while protecting investors remains a priority, excessive regulation could drive innovation overseas. Striking the right balance will be crucial for maintaining the U.S.’s competitive edge.

A More Pro-Innovation SEC: What It Means for Crypto

A shift toward pro-innovation policies could have far-reaching implications for the cryptocurrency market:

Boosting Institutional Confidence: Clearer regulations would encourage institutional investors to participate in the crypto market.

Encouraging Startups: A supportive regulatory environment could attract blockchain startups, fostering economic growth.

Global Leadership: The U.S. could solidify its position as a leader in blockchain technology and cryptocurrency innovation.

Challenges Ahead

While optimism surrounds the potential policy shift, challenges remain:

Legislative Coordination: The SEC’s policies must align with broader legislative efforts to create a cohesive framework.

Fraud and Misuse Risks: Regulators must address concerns about fraud and misuse without overburdening legitimate actors.

Global Competition: As other nations adopt crypto-friendly policies, the U.S. must act decisively to remain competitive.

The Crypto Industry’s Response

The crypto community has welcomed Peirce’s comments as a sign of potential relief from the SEC’s stringent stance. Many industry leaders are hopeful that the SEC will engage more collaboratively with blockchain innovators and prioritize clarity in its regulatory agenda.

Conclusion

Commissioner Hester Peirce’s discussion of a potential shift in the SEC’s crypto policy offers a glimmer of hope for the industry. Her emphasis on pro-innovation strategies and the transition to new leadership could herald a new era for cryptocurrency regulation in the U.S.

As the regulatory landscape evolves, the crypto industry and policymakers must work together to foster innovation while addressing risks effectively. The potential for a more balanced, innovation-friendly SEC could pave the way for sustainable growth in the blockchain sector.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.

Jump Crypto's subsidiary, Tai Mo Shan, has reached a $123 million settlement with the SEC for misleading investors about the TerraUSD stablecoin. Tai Mo Shan, a key player in Terra's ecosystem, was involved in deceptive practices during the UST depegging crisis. The SEC accused the firm of falsely stabilizing UST and acting as a statutory underwriter for Terra Luna token. This led to significant investor losses and market disruption. The settlement includes a payment of $123 million and a cease-and-desist order. This follows similar actions against Terraform and its founder for fraud and unregistered securities offerings. The incident highlights the importance of compliance with securities laws in the crypto market to protect investors. Tai Mo Shan did not admit or deny the SEC's findings but agreed to the terms to avoid future violations. Read more AI-generated news on: https://app.chaingpt.org/news

In a recent update, CyberKongz, a popular gaming-based NFT project, revealed that they had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC). This notice raised concerns regarding the platform’s integration of its ERC-20 token with blockchain games and questioned certain aspects of its activities, specifically focusing on the 2021 contract migration.

The SEC’s main argument seems to be centered around whether or not ERC-20 tokens can operate alongside blockchain games without being categorized as securities. This issue has far-reaching implications for the entire Web3 gaming industry. CyberKongz expressed disappointment with the SEC’s handling of the matter but vowed to fight for a better future that provides more clarity for other NFT projects.

One of the points of contention is the Genesis Kongz contract migration in April 2021, which the regulator interprets as a token sale. CyberKongz clarified that this migration was not a primary sale and criticized the SEC’s inability to differentiate between the two. This development gives the platform 30 days to respond before the SEC decides whether to pursue any enforcement action.

This isn’t the first time the SEC has issued such warnings; other prominent blockchain and NFT companies like Coinbase, Consensys, Ripple, OpenSea, Uniswap Labs, and Bittrex have faced similar challenges in recent years. Last month, another Australian-based gaming company called Immutable also reported receiving a Wells Notice from the SEC.

However, no further action has been taken against them so far. Despite these challenges, CyberKongz remains committed to advancing its work without the added burden of silence. They believe that this situation represents a turning point where they can continue to advocate for clearer guidelines within the NFT and blockchain industries.

Source

As per reported by cryptopotato.com

The SEC will prioritize market integrity and investor protection during a potential shutdown, pausing non-essential operations.

Essential functions like the EDGAR database will remain active, but filing reviews, approvals, and exemptions will face delays.

Gary Gensler’s SEC departure on January 20 coincides with a leadership shift to Paul Atkins amid shutdown uncertainties.

The Securities and Exchange Commission (SEC) is preparing to scale back operations in anticipation of a potential government shutdown. With federal funding in question, the agency plans to prioritize essential functions, focusing on market integrity and investor protection. 

However, non-essential activities will be paused, potentially causing significant disruptions for companies and financial entities relying on its services.

https://twitter.com/attorneyjeremy1/status/1869820640641069560 Core Operations to Continue, But Delays Are Expected

In addition, the SEC’s essential systems, including the EDGAR database, will remain operational during a shutdown. This database ensures companies and investors can still access critical filings. 

However, the agency will suspend its review of registration statements, tender offers, and similar filings. Consequently, businesses seeking to raise capital or manage securities transactions may face delays.

Moreover, companies awaiting feedback or approval from the SEC will experience interruptions, as the agency will not process exemption requests or no-action letters during this period. The shutdown could disrupt corporate finance activities, potentially affecting market participants reliant on timely SEC reviews.

Leadership Transition Adds Another Layer of Uncertainty

Gary Gensler, the SEC Chair under President Joe Biden, previously announced plans to step down on January 20. His departure coincides with President-elect Donald Trump’s nomination of Paul Atkins, a former SEC commissioner, as his replacement.

Atkins, known for his conservative approach, is expected to shape the agency’s direction significantly. As cases like Ripple’s gain momentum, the shutdown raises questions about how high-profile legal proceedings might be affected.

Legal professionals, such as attorney Jeremy Hogan, have suggested that the SEC pause non-fraud litigation cases during this uncertain period. Hogan emphasized the importance of focusing on ethical considerations during a time when the agency’s resources are stretched thin.

Consequently, the government shutdown could impact the SEC’s ability to oversee market activities comprehensively. Federal agencies cannot operate without funding, limiting their scope to essential functions like protecting property and investors.

Therefore, businesses must prepare for potential delays and interruptions, especially those requiring SEC approvals or guidance.

The post XRP Lawsuit Nears Conclusion as SEC Braces for ‘Potential’ Shutdown appeared first on Crypto News Land.

CyberKongz, a gaming-based NFT project, announced on December 16 that it has received a Wells Notice from the U.S. Securities and Exchange Commission (SEC).

The notice raises concerns about the platform’s integration of its ERC-20 token with blockchain games and questions aspects of its activities, including its 2021 contract migration.

The SEC’s Argument

In a post on X, the CyberKongz team expressed their dismay with the agency’s handling of the situation, saying:

“We are extremely disappointed at the approach the SEC has taken towards us, but we are going to stand up and fight for a brighter future that holds more clarity for NFT projects.”

They disclosed that the issue began two years ago when the regulator first contacted them, during which time they operated quietly and under a lot of pressure.

The post highlighted that the SEC’s main concern appears to center on whether ERC-20 tokens can function alongside blockchain games without being classified as securities.

CyberKongz argued that this implication could have wide-ranging consequences for the Web3 gaming industry. They also said they are determined to contest the financial watchdog’s position and advocate for a clearer regulatory framework.

Another point of contention involves the Genesis Kongz contract migration in April 2021, which the regulator reportedly interpreted as a token sale. The NFT project clarified that the migration was not a primary sale and criticized the SEC’s inability to differentiate between the two, stating:

“If they cannot distinguish between a primary sale and a contract migration, what hope do we currently have for a clear regulatory pathway going forward?”

The Wells Notice gives the platform 30 days to respond before the SEC decides whether to pursue enforcement action. While not a formal allegation of wrongdoing, such a notice shows that the agency is considering further legal steps.

Broader Industry Issue

This latest development adds CyberKongz to a growing list of blockchain and NFT entities under SEC scrutiny, including Coinbase, Consensys, Ripple, OpenSea, Uniswap Labs, and Bittrex, which have faced similar notices in recent years.

Last month, Australian-based gaming company Immutable also reported receiving such a warning. At the time, they expressed frustrations over vague allegations and unclear regulatory guidelines. However, no further action has been taken since then.

Meanwhile, CyberKongz has reassured its community that it remains committed to advancing its work without the burden of silence. It stated that the situation marks a turning point as it continues to advocate for clearer guidelines within the NFT and blockchain industries.

The post NFT Gaming Project CyberKongz Receives Wells Notice from SEC appeared first on CryptoPotato.

Yesterday’s crypto market crash saw some positive news as the US Securities and Exchange Commission (SEC) approved two new exchange-traded funds (ETFs). These unique ETFs will track a combination of Bitcoin (BTC) and Ethereum (ETH). They were developed by Franklin Templeton and Hashdex and are scheduled to launch in January 2025.

This marks the first time the SEC has approved such a hybrid Bitcoin-Ethereum index ETF. Both ETFs will hold a mix of spot BTC and ETH, with the current proportion being 80% BTC and 20% ETH. However, they may expand to include other cryptocurrencies in the future, subject to regulatory approval. The SEC noted that Franklin Templeton’s application was granted expedited approval on December 18th.

Nate Geraci, President of The ETF Store, shared his thoughts on the matter: “This will be interesting to see if BlackRock or others attempt to piggyback on this and launch similar ETFs. Regardless, I expect there will be significant demand for these products. Advisors love diversification, especially in emerging asset classes like crypto.”

It seems that the SEC’s decision to approve these crypto index ETFs aligns with previous approvals of spot Bitcoin and spot Ethereum ETFs in terms of the trusts’ structure and operating terms.

The Exchange Act requirements set forth by the SEC mandate that issuers must implement measures to protect against fraud, manipulation, and risks to investors. Hashdex initially filed its S-1 with the SEC in August, followed by Franklin Templeton in August as well. Both companies made subsequent amendments to their applications before final approval.

Notably, Hashdex’s ETF will utilize custodial services provided by Coinbase, BitGo, Fidelity, and Gemini. Similarly, Franklin Templeton’s ETF will partner with BitGo and Coinbase for custody services. With the recent surge in popularity of crypto ETFs, it appears that they may soon overtake spot gold ETFs in terms of net assets held.

This development comes amid growing acceptance of regulated crypto products across various jurisdictions worldwide.

Source

As per reported by www.bitcoininsider.org