Month: June 2023

The collapsed Singaporean crypto hedge fund, Three Arrows Capital, faces legal complications as co-founder Kylie Davies faces potential contempt of court charges for failing to respond to a subpoena. The case highlights accountability and transparency issues within the cryptocurrency industry, prompting debate on the need for stricter regulations.

The main contention around cryptocurrency regulation involves clashes between the SEC and the CFTC, resulting in a piecemeal regulatory approach. A better method entails the SEC following APA-approved procedures for greater predictability, transparency, and a stronger regulatory framework for digital assets.

Tether addresses reports of backing USDT with Chinese securities, stating the cited materials are outdated and their exposure to Chinese commercial papers was liquidated last year. The company emphasizes the importance of accurate and balanced information for the healthy development of the crypto industry.

Crypto traders are increasingly seeking alternative liquidity sources in over-the-counter (OTC) markets due to regulatory crackdowns and reduced market depth on centralized exchanges. This shift towards OTC markets helps traders execute large transactions without relying on thin order books of exchanges, thereby gaining more prominence in the current situation.

The Texas State Securities Board issued an emergency cease-and-desist order against crypto lender Abra for alleged securities fraud, deception, and insolvency since March 31, 2023. This highlights the importance of balancing innovation in crypto lending with prudent regulatory oversight to protect investors.

Financial Services Committee Chairman Patrick McHenry indirectly supports BlackRock iShares spot Bitcoin ETF and criticizes the SEC’s regulation approach to the digital asset market. The upcoming hearings and committee vote on a digital asset bill may impact the crypto market, clarifying regulations and jurisdiction between the SEC and CFTC.

BlackRock has filed paperwork with the SEC to create a spot Bitcoin ETF under its iShares unit, which may boost mainstream adoption and bring institutional investors into the crypto space. However, regulatory hurdles and a history of rejections could make the approval process lengthy and uncertain, and potentially increase market volatility.

Newly disclosed documents reveal that Tether Holdings Ltd., issuer of the largest stablecoin USDT, previously held reserves in Chinese company-issued securities, short-term loans to Chinese companies, and a loan to crypto platform Celsius Network. Concerns arise over Tether’s $5.1 billion lending program, underpinning USDT’s importance for liquidity and stability in cryptocurrency markets.

Binance exits the Dutch market after failing to secure a virtual asset service provider license, halting new user registrations and ceasing trading on July 17. This raises questions about the broader impact of increased regulatory scrutiny on the crypto space and signifies a shift in the struggle for greater crypto acceptance and legitimacy.

The FDIC accuses crypto exchange OKCoin of making misleading statements about FDIC insurance coverage on their platform. The regulator demands removal of fraudulent claims, stressing the importance of transparency and regulatory cooperation in the growing crypto industry.

Binance faces investigation in France over allegations of illegal digital asset services and aggravated money laundering. This situation emphasizes the increasingly complex regulatory landscape for cryptocurrencies, highlighting the need for balancing innovation and compliance in the industry.

The SEC disputes Terraform and Do Kwon’s motion to dismiss their lawsuit, arguing that the defense’s documents don’t support dismissal. Dentons, representing the defendants, insists USTC isn’t a security and highlights the regulatory gap in crypto asset classifications. A decision on the motion is expected by July 14th.