#SEC

Both Coinbase and the SEC have denied reports claiming that the regulator requested the exchange to halt trading in all cryptocurrencies other than Bitcoin. A Coinbase spokesperson has clarified to Blockworks that the supposed recommendation was an inaccurate representation of the facts. The interview published by the Financial Times earlier lacks important context regarding the conversations between Coinbase and the SEC.

According to Coinbase CEO Brian Armstrong, the SEC requested the exchange to halt trading in all cryptocurrencies except bitcoin before filing a lawsuit against the platform in June. “We really didn’t have a choice at that point. Delisting every asset other than bitcoin, which, by the way, is not what the law says, would have essentially meant the end of the crypto industry in the US,” said Armstrong.

Grayscale Investments has warned the US Securities and Exchange Commission (SEC) that granting approval to certain spot Bitcoin ETF proposals ahead of others could create an "unfairly discriminatory and prejudicial first-mover advantage". The company's comments follow BlackRock's recent application to launch a spot Bitcoin ETF, which reignited hopes and triggered similar filings from other firms. Grayscale had previously attempted to convert its Bitcoin Trust (GBTC) to an ETF but was denied by the SEC. The firm now supports the simultaneous approval of all proposed spot Bitcoin ETFs to maintain a level playing field.

The lawsuit between the U.S Securities and Exchange Commission (SEC) and cryptocurrency exchange Coinbase is moving forward as the date for initial arguments has been confirmed. Coinbase's chief legal officer, Paul Grewal, revealed on Twitter that New York judge Katherine Polk Failla had approved the joint request from both parties to proceed with hearings. Coinbase has until August 4, 2023, to submit its initial brief and additional supporting documents by August 11. The SEC's opposition brief is due on or before October 10, with Coinbase's reply by October 24 or sooner.

Terraform Labs was looking to the positive verdict in the "SEC versus Ripple" litigation as a precedent for its own safeguard against allegations from the U.S. Securities and Exchange Commission. Yet, Judge Jed Rakoff has dashed such hopes. The crux of the matter is a substantial divergence in the judge's view concerning the Howey Test, which assesses whether an asset is a security. Terraform Labs' token purchases were clearly carried out by users with profit expectations - a paramount criterion for securities. Therefore, it renders the precise method of purchase irrelevant. The dichotomy between the two judges' decisions underscores the persisting uncertainty in the landscape of cryptocurrency regulations.

The SEC has filed a lawsuit against famous internet marketer Richard Schueler, also known as Richard Heart, along with his crypto projects Hex, PulseChain, and PulseX. They allege that Schueler conducted three unregistered securities offerings starting in 2019, raising more than $1 billion from investors. Furthermore, the SEC accused Heart of defrauding his investors by misusing their funds for personal expenses and goods.

The United States House panel has approved two bills that could provide regulatory clarity for crypto firms, addressing the jurisdictional differences between the U.S. securities and commodities regulators. The Republican bill introduces a process for firms to certify with the SEC that their projects are decentralized, enabling them to register digital assets as digital commodities with the CFTC. The bipartisan Blockchain Regulatory Certainty Act aims to remove hurdles and requirements for “blockchain developers and service providers” such as miners, multisignature service providers, and decentralized finance platforms. Congressmen praised the passing of these bills as a “huge win” for the United States.

Valkyrie's spot Bitcoin ETF application has officially entered the review stage at the U.S. Securities and Exchange Commission (SEC). It comes right after BlackRock's recent submission. Here's an interesting detail: this ETF has been given the ticker symbol BRRR, a sound crypto enthusiasts often equate with the whir of a money printing machine! The SEC has a window of up to 45 days (which can be extended to 90 days in special cases) to review Valkyrie's application.