March 24, 2023
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SEC

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SEC could approve spot Bitcoin ETFs as early as 2023 — Bloomberg analysts

SEC could approve spot Bitcoin ETFs as early as 2023 — Bloomberg analysts

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“Once crypto exchanges are compliant, the SEC’s primary reason for denying spot Bitcoin ETFs would no longer be valid, likely clearing the way for approval,” said the analysts.

Eric Balchunas and James Seyffart, exchange-traded fund analysts for Bloomberg, said that a proposed rule change with the United States Securities and Exchange Commission could be the catalyst for the regulatory body approving a spot Bitcoin ETF in mid-2023.

In a Thursday tweet, Balchunas said crypto platforms could fall under the SEC’s regulatory framework if the commission were to approve an amendment to change the definition of “exchange” proposed in January. The rule change would amend the Exchange Act to include platforms “that make available for trading any type of security” — seemingly including cryptocurrencies, making their investment vehicles more palatable for the regulator.

“Once crypto exchanges are compliant, the SEC’s primary reason for denying spot Bitcoin ETFs would no longer be valid, likely clearing the way for approval,” said the analysts.

Balchunas and Seyffart said under this amended definition of “exchanges”, which could be finalized between November 2022 and May 2023, the SEC could approve spot crypto ETFs including those with exposure to Bitcoin (BTC). The regulatory body has so far rejected all rule changes allowing listings of spot BTC ETFs on exchanges, despite approving some investment vehicles linked to Bitcoin futures in 2021.

Related: Is Bitcoin price mimicking the 2017 bull run?

Many U.S. lawmakers and industry leaders have pushed back against the SEC’s seeming reticence to approve a spot Bitcoin ETF. In November, Representatives Tom Emmer and Darren Soto sent a letter to SEC chair Gary Gensler challenging the reasons the regulator has denied listing shares of a spot Bitcoin ETF. Bitfury CEO and former Acting Comptroller of the Currency Brian Brooks also said during a December hearing that the United States was “unquestionably” behind the curve on approving crypto ETFs.

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SEC scores a minor victory in legal dispute with Ripple Labs

SEC scores a minor victory in legal dispute with Ripple Labs

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“The filing of the Individual Defendants’ Answer is the triggering event. When the Answer is filed, even if before April 8th, the date the Answer is filed starts the two week clock running for the filing of the SEC position on discovery” said lawyer James K. Filan.

The U.S. Securities and Exchange Commision (SEC) has been granted an extension to submit a discovery schedule relating to individual defendants Brad Garlinghouse (CEO) and Chris Larsen (co-founder) as part of the case against Ripple Labs.

The bitter legal dispute has been going since late December 2020, after the SEC alleged that Ripple Labs generated $1.3 billion from an unregistered security offering via its XRP token. The firm denies that XRP is a security and is instead a method for international payments, and has argued that the SEC failed to give Ripple fair notice that its token was a security.

While the ruling in favor of the SEC in this instance marks a small win, some onlookers have suggested that the enforcement body is dragging its heels and slowing the case down to frustrate Ripple Labs.

The latest development was highlighted by defense lawyer and former U.S. federal prosecutor James K. Filan, who cited a text only order from the Court earlier today.

“The SEC shall inform the Court of its position on whether any additional discovery is required within a week of the filing of the Individual Defendants,” the order read.

As part of the delayed schedule, the defendants now have until April 8 to submit an answer to the SEC’s complaints, while the SEC’s decision on additional discovery is due the following week on April 15, and joint proposed scheduling order is also due on April 22.

However the dates are not set in stone, and could change depending on how fast Ripple Labs moves, with Filan noting that:

“The filing of the Individual Defendants’ Answer is the triggering event. When the Answer is filed, even if before April 8th, the date the Answer is filed starts the two week clock running for the filing of the SEC position on discovery and the Joint Proposed Scheduling Order.”

Relating: Crypto industry seeks to educate, influence US lawmakers as it faces increasing regulation

The XRP community reaction to the post was mixed, with some expressing anger at the SEC as “just trying to gain time in a case already lost,” while others such as Twitter user “r ColeTheMailman” suggesting that the delays could be good for XRP in the long run.

“This is a good thing, SEC will have no excuse as to timelines and more delays after a schedule has been confirmed. Also they will not be able to say they were rushed when and if it comes down to summary judgment,” he said.

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Thailand Adopts Rules Restricting Cryptocurrency Payments From April

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Thailand Adopts Rules Restricting Cryptocurrency Payments From AprilRegulators in Thailand have decided to limit the use of cryptocurrencies as a means of payment. The authorities consider the country’s current payment system efficient and insist cryptos would only bring risks for the financial system, economy, people and businesses. Thailand SEC Issues Regulations Limiting Use of Digital Assets for Payments Financial regulators in Thailand […]
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Thailand SEC bans crypto payments, seeks disclosure of system failure from exchanges

Thailand SEC bans crypto payments, seeks disclosure of system failure from exchanges

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Since Dec. 2021, the government of Thailand has been working on preparing a new regulatory framework by defining “red lines” for the crypto industry.

In an ongoing effort to carve out a regulated crypto market for the general public, the Thailand Securities and Exchange Commission (SEC) announced a ban on the use of cryptocurrencies for payments. Parallelly, the Commission proposed a new rule that demands disclosure of service quality and IT usage information from crypto businesses including brokers, exchanges and dealers.

According to the notice issued by the Thai SEC, businesses in the region have been advised against accepting crypto payments from April 2022 after discussing its implications with the Bank of Thailand (BOT).

The joint study conducted by the BOT and SEC concluded that:

“[Crypto payments] may affect the stability of the financial system and overall economic system including risks to people and businesses.”

Some of these risks highlighted by the SEC include loss of value caused by price volatility, cyber theft, money laundering and personal data leakage. Once implemented, businesses in Thailand will be barred from — advertising accepting crypto payments and establishing systems, tools and wallets to facilitate crypto transactions. 

Businesses found in noncompliance with the new crypto laws will be subject to legal actions including temporary suspension or cancellation of the services:

“However, the BOT and the SEC, as well as other government agencies, recognize the benefits of technologies behind digital assets such as blockchain and value and support the use of technology to further innovation.”

Moreover, the Thai SEC proposal aims to further ensure investor security by gauging the quality of the services delivered by the crypto businesses. According to a rough translation, the SEC’s proposes digital asset operators to:

“Prepare and deliver [service quality and system capacity utilization reports] to the SEC office on a monthly basis within the 5th day of the following month.”

In addition to sending monthly reports to the Thai SEC, the proposal also directs crypto businesses to disclose the reports on their official website within the same timeline. 

A graph shared by the SEC further highlighted various complaints received over the past 12 months related to system failure, services that do not meet the desired conditions, shopping and others. Based on the data, Thai investors faced the highest problems related to shopping, which might be one of the main reasons for the crypto payments ban. 

As Cointelegraph previously reported back in Dec 2021, the government of Thailand confirmed working on preparing a new regulatory framework by defining “red lines” for the crypto industry.

Related: Thailand reportedly exempts 7% crypto tax for traders on authorized exchanges

In the first week of March, the finance ministry of Thailand had reportedly eased up crypto tax regulations in an effort to promote digital asset investments.

According to a Cointelegraph report on the matter, the new tax policy exempts crypto traders from the 7% value-added tax (VAT) when trading on authorized exchanges. In addition, the revised tax policy will also allow traders to offset their annual losses against gains for their crypto investment across multiple digital assets.

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SEC pushes decisions on WisdomTree’s and One River’s applications for spot Bitcoin ETFs

SEC pushes decisions on WisdomTree’s and One River’s applications for spot Bitcoin ETFs

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The regulator said it would extend its window for the decision on WisdomTree’s Bitcoin investment vehicle to May 15 and One River’s to June 2.

The United States Securities and Exchange Commission has extended its window to approve or disapprove spot Bitcoin (BTC) exchange-traded fund (ETF) applications from asset managers WisdomTree and One River.

According to separate Friday filings, the SEC will push the deadline for approving or disapproving a rule change allowing shares of the WisdomTree Bitcoin Trust and One River Carbon Neutral Bitcoin Trust to be listed on the Cboe BZX Exchange and New York Stock Exchange Arca, respectively. The regulator said it would extend its window for the decision on WisdomTree’s Bitcoin investment vehicle to May 15 and One River’s to June 2.

The spot BTC ETF application from WisdomTree followed the SEC rejecting a similar offering from the asset manager in December 2021 after several delays. The regular said at the time that the BZX exchange did not provide enough data to conclude the crypto market is resistant to manipulation, or address concerns about possible sources of fraud and manipulation. WisdomTree filed for another spot BTC ETF listing in February 2022.

In contrast, One River’s BTC investment vehicle will be nearing its final deadline in 2022 after the firm filed for a proposed rule change listing on NYSE Arca on Oct. 5. The commission was expected to reach a decision or extend its deliberation window on the crypto ETF by April 3 but chose to push the deadline for an additional 60 days, to June 2, 2022. The SEC has the ability to extend the deliberation window or open the application up to public comment for up to 240 days before delivering a final decision.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised in the comments that have been submitted in connection therewith,” said the SEC regarding One River’s application.

Related: Bitcoin ETF decision delayed, SEC commissioner wonders why

Regulators in the U.S. have continued to deny applications to list spot Bitcoin ETFs but also gave the green light to investment vehicles linked to BTC derivatives for the first time in October 2021. On March 11, the SEC rejected crypto ETF applications from New York Digital Investment Group and Global X. However, some BTC “strategy” ETF applications have had more success, with the regulator in 2021 approving the listing of shares of funds from Valkyrie, ProShares and VanEck.

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Coinbase Sued for Allegedly Selling 79 Unregistered Crypto Securities — Including XRP, Dogecoin, Shiba Inu

CoinRegWatch05 mins
Coinbase Sued for Allegedly Selling 79 Unregistered Crypto Securities — Including XRP, Dogecoin, Shiba InuA class-action lawsuit has been filed against the Nasdaq-listed cryptocurrency exchange Coinbase alleging that the platform lets customers trade 79 cryptocurrencies that are unregistered securities, including XRP, dogecoin (DOGE), and shiba inu (SHIB). Lawsuit Claims Coinbase Sold 79 Unregistered Crypto Securities to Customers A class-action lawsuit was filed last week against Coinbase Global Inc., Coinbase […]
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8 US Lawmakers Urge SEC to Stop Crippling Crypto, Stifling Innovation

CoinRegWatch04 mins
US Lawmakers Urge SEC to Stop Crippling Crypto, Stifling InnovationEight U.S. lawmakers have sent a letter to the chairman of the U.S. Securities and Exchange Commission (SEC) regarding how the agency collects information from crypto companies. According to the crypto community, the SEC’s “requests” for information “are overburdensome, don’t feel particularly voluntary, and are stifling innovation.” US Lawmakers Want Answers From SEC U.S. Representatives […]
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Exodus crypto wallet starts trading on SEC-registered platform

Exodus crypto wallet starts trading on SEC-registered platform

CoinRegWatch04 mins

Exodus reported nearly $96 million in revenues for the fiscal year of 2021, which is a 350% increase year-over-year.

Major software cryptocurrency wallet Exodus has gone public on the digital asset securities firm Securitize Markets following a $75 million crowdfund capital raise.

Exodus’ shares started trading on Securitize on Wednesday, allowing investors from all across the United States and international investors from more than 40 countries to trade the Exodus Class A common stock.

Trading under the ticker symbol EXOD, the Exodus Class A common stock is digitally represented on the Algorand blockchain via common stock tokens.

According to a spokesperson for Exodus, Securitize Markets is the second trading venue to list Exodus shares after launching on tZero in September 2021. The new listing on Securitize enables the firm to onboard new retail investors and raise funds, Exodus CEO and co-founder JP Richardson said:

“Securitize’s platform enabled us to onboard over 6,800 mostly retail investors and raise $75 million. Now, with the trading of Exodus shares on their platform, it’s all under one roof. We are very excited about the increased ability to trade our shares.”

As previously reported, Exodus raised $75 million via a mini initial public offering sale approved by the U.S. Securities and Exchange Commission in May 2021. The SEC previously registered the Securitize platform as a transfer agent in 2019. The digital securities platform is backed by some major crypto companies and investors, including Coinbase, Morgan Stanley investment funds and Blockchain Capital.

“Now that Exodus shares are available for retail investors to trade on Securitize Markets, a bigger market for their shares, price discovery and liquidity potential has been created, and this should be an example to many other private businesses that want to raise capital from their community,” Securitize CEO Carlos Domingo said.

Related: Crypto-related stocks jump in positive reaction to executive order

Exodus initially sold its shares at a price of $27.42 per unit. According to the latest available data on TradingView, EXOD was trading at $15.9 on March 14.

Exodus Class A common stock’s 90-day chart. Source: TradingView

Founded in 2015, Exodus is a major software cryptocurrency wallet integrated with a decentralized crypto exchange. Last week, the company reported nearly $96 million in revenues for the fiscal year of 2021, which is a 350% increase year-over-year.

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