Elven’s Post

Coinbase is serving as the custodian for eight of the spot bitcoin exchange-traded funds that started trading last week. Its custody arm is responsible for safekeeping the bitcoin and will receive a fee based on the total value of the funds’ assets. It holds two separate registrations in Ireland as a #virtualasset service provider and a fully EEA passportable #electronicmoney authorisation and announced last year that Ireland will be its European home under #MiCAR. This Wednesday #digitalasset super multi-faceted financial will ask a federal court judge to dismiss the high-stakes lawsuit brought against the company last year by the Securities and Exchange Commission. The agency sued #Coinbase in June for allegedly offering and listing unregistered securities, among other things. Industry watchers say the request for dismissal is a long shot. The SEC has long argued that most crypto tokens are securities, a category that includes assets such as stocks and bonds. Selling securities to the broader public without registering them with the SEC makes the issuer liable for violating investor-protection laws. The agency says Coinbase traded at least 13 crypto assets that are securities and should have been registered with regulators before they were issued. This WSJ article "Last Man Standing in Crypto: Brian Armstrong’s Coinbase, a winner from the new bitcoin ETFs that recently started trading, faces a big legal test" is a good read. https://lnkd.in/d8F33nY8 #BTCEFT #cryptocurrency

The Treasury Department last week released a set of proposed regulations that would impose new tax reporting obligations on many digital asset transactions starting in 2025.   The proposal calls for a new type of 1099 specifically for digital assets called the 1099-DA. Exchanges, payment processors, and some wallet providers would be required to use this form to report users' gains and losses on their crypto transactions.   A number of people are expressing concern that the rules may also apply to decentralized exchanges that have little ability to comply with such extensive reporting requirements.   One clear positive is that the proposed rules would not apply to Bitcoin miners, which was a concern for the industry when the legislation that called for these regulations was originally passed in 2021.   The proposal is open to public comment through October 30, and public hearings are scheduled for November 7 and 8. #bitcoin #crypto #digitalassets #tax

$BTC #Bitcoin #SEC #Coinbase — Court Determines Cryptocurrency Sales on Coinbase Constitutes Securities Transactions 🔥 In a pivotal ruling, a Federal Judge from the Western District of Washington sided against Samir Ramani in a lawsuit involving a Coinbase employee accused of sharing insider information with his brother and a friend. This landmark decision, which partially satisfied the Securities and Exchange Commission's (SEC) request for a summary judgment, signals profound ramifications for the broader cryptocurrency sector. Judge Tana Lin declared that the case falls squarely within the SEC's purview, classifying the crypto assets under scrutiny as securities, despite their trading on Coinbase, a secondary marketplace. This affirmation by a federal judge endorses SEC Chairman Gary Gensler's stance that the majority of crypto industry operations are subject to SEC oversight. Lin's ruling is particularly notable as it pertains to secondary transactions, setting a precedent that may prompt further legal scrutiny. The ongoing debate over the classification of crypto assets as securities is poised to escalate, potentially reaching the Supreme Court for a definitive resolution. (Source: https://lnkd.in/ehnJ6ePB) ✔️ I trade Bitcoin and Ethereum on the Bybit exchange (https://bit.ly/48KN5bZ) 📈 📱 Join us at Chain Knights Premium (https://lnkd.in/e3easuZy) ✅ ➥ It's free.

Certain members of US Congress are trying to invalidate the controversial US SEC accounting bulletin that implies restrictions on companies wishing to hold their customer's crypto assets.  Some members for the US Senate as well as House of Representatives seem to have introduced matching resolutions in the Senate and the House that would formally disapprove of the accounting rule and conclude that it has no legal force, per a CoinDesk report. The accounting bulletin at issue, “the SEC's 2022 staff accounting bulletin No.121, commonly known as SAB 121”, held that a company keeping a client's cryptocurrencies should do so on the firm's own balance sheet – which could force banks seeking to hold crypto to maintain what they'd view as an onerous amount of capital to compensate for the risk, per the report. It will be interesting to see how the matching resolutions in the Congress move forward and whether the SAB 121 will be eventually made invalid. The result of the matching resolutions efforts may have significant impact on crypto custody businesses in the US and may influence other countries’ similar areas. Read on the report for more details! #crypto #cryptocurrency #cryptoaccounting #SAB121 #cryptoregulation #digitalassets #virtualassets

KuCoin Exchange, one of the world’s largest #CryptoExchanges, halted its operations in New York state as part of a $22 million settlement to resolve a legal battle initiated by state authorities. The lawsuit, filed by New York Attorney General Letitia James in March, accused #KuCoin of allowing #investors to trade #cryptocurrencies without proper registration. As part of the settlement, KuCoin will discontinue trading securities and commodities in New York, marking another move by regulators to tighten oversight in the #crypto market. The $22 million settlement includes a $5.3 million payment to the state and the refunding of $16.7 million worth of #cryptocurrency to over 175,000 New York investors. More at #Proactive #ProactiveInvestors #CryptoExchange http://ow.ly/bbeI1055wVq

The U.S. Securities and Exchange Commission on Friday denied a petition by Coinbase Global seeking new rules from the agency for the digital asset sector, which the country's largest crypto exchange then sought to challenge in court. The five-member commission, in a 3-2 vote, said it would not propose new rules because it fundamentally disagreed that current regulations are "unworkable" for the crypto sphere, as Coinbase has argued. Coinbase later said it had filed a petition for review of the SEC's decision in court. The dispute was the latest in a broader tug-of-war between the crypto sector and the top U.S. markets regulator, which has repeatedly said most crypto tokens are securities and subject to its jurisdiction. The agency has sued several crypto companies, including Coinbase, for listing and trading crypto tokens which it says should be registered as securities. #crypto #cryptoinvestor #cryptoinvesting #us #sec #cryptoinvestment #btc #eth #latest #usa #cryptousa #bitcoin #latest #fyp #foryou

Binance is facing challenges as it tries to re-enter the UK market due to regulations. The Financial Conduct Authority's new regulatory rules mean that crypto companies need to register for marketing approval, which can allow the FCA to block unregistered firms from finding partners. This is exactly the issue Binance faced when it attempted to partner with Rebuildingsociety. Learn more here: https://bit.ly/49b9v6K #BInance #Crypto #FCA

What happened in the crypto industry last week (March 25-31)? Top-3 news: 1. The London Stock Exchange will start trading Crypto ETNs in May 2024. The document presented by the exchange contains a number of requirements for issuers, including the preparation of a detailed plan and obtaining permission from the Financial Conduct Authority (FCA). According to the exchange, trading in cryptocurrency ETNs will only be available to professional investors. See [https://lnkd.in/e_qrGSWe]. 2. KuCoin and two of its founders have been criminally charged with violating the Bank Secrecy Act and operating a money transmission business without a license. Later, the CFTC filed a lawsuit against KuCoin, accusing it of failing to register, failing to supervise its activities, and deliberately refusing to implement a customer identification program (CIP). In addition, the company is suspected of illegal trading in off-exchange commodity futures and leveraged transactions. See [https://lnkd.in/e5Aj9UPN], [https://lnkd.in/eeB4zPxn]. 3. The court rejected the SEC's argument that Coinbase Wallet is an unregistered broker. The judge confirmed that Coinbase operates within federal securities laws. However, the SEC retains the right to further legal action, claiming that the exchange continues to offer and sell unregistered securities. See [https://lnkd.in/eyQhY8vV]. In other news: - The SEC will go to court to seek a $2 billion fine from Ripple Labs. See [https://lnkd.in/eybWDgWP]. - DeFi Education Fund, together with Beba, filed a lawsuit against the SEC. See [https://lnkd.in/e_TG8shf]. - The FCA issued a warning to meme creators about cryptocurrencies. See [https://lnkd.in/eyFb5EJH]. #Crypto #LondonStockExchange #ETN #KuCoin #Coinbase #SEC #FCA #Ripple #CryptocurrencyRegulation