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Ripple V. SEC Lawsuit Update: the Next Key Dates to Wait for
TL;DR
The trial between Ripple and the SEC has advanced, with Ripple set to respond to SEC motions by early May following a new scheduling order by Judge Sarah Netburn.
Attorney Jeremy Hogan anticipates a potential summer conclusion to the lawsuit, with the company possibly facing a $100 million settlement.
What’s Coming Next?
The legal dispute between Ripple and the US Securities and Exchange Commission (SEC) entered into its trial phase last week, with numerous industry participants expecting a resolution or a mutual agreement in the near future.
Most recently, American attorney James K. Filan revealed that Magistrate Judge Sarah Netburn has entered a new scheduling order. The action is focused on the motion for remedies and entry of final judgment. Judge Netburn ruled that the regulator should file its response by April 29, whereas Ripple is granted three business days thereafter to reply.
The latest action on the case follows Netburn’s recent nomination as District Judge in the Southern District of New York. She has previously shown a rather favorable stance toward Ripple’s native token, giving the XRP army hope that a decisive court win for the company might be on the horizon.
“My understanding about XRP is that not only does it have a currency value, but it has a utility, and that utility distinguishes it from bitcoin and ether,” the judge said in 2021 (according to attorney Jeremy Hogan).
The Possible Scenarios
Hogan recently suggested that the lawsuit might be officially closed sometime this summer, envisioning a $100 million settlement:
“I’m saying that the Judge will order 0 disgorgement but throws the SEC a bone and orders Ripple to pay a $100 million penalty.”
Previously, the SEC sought a $2 billion fine on the firm, alleging certain XRP sales violations. For its part, Ripple argued that its native cryptocurrency should not be classified as a security and, thus, not fall under the agency’s jurisdiction. The company’s chief legal officer, Stuart Alderoty, outlined several important reasons why the penalty should be no more than $10 million.
If you are curious to learn more about the legal spat and its potential impact on XRP and the entire cryptocurrency market, feel free to check our dedicated video below:
The post Ripple v. SEC Lawsuit Update: The Next Key Dates to Wait for appeared first on CryptoPotato.
The trial between Ripple and the SEC has advanced, with Ripple set to respond to SEC motions by early May following a new scheduling order by Judge Sarah Netburn.
Attorney Jeremy Hogan anticipates a potential summer conclusion to the lawsuit, with the company possibly facing a $100 million settlement.
What’s Coming Next?
The legal dispute between Ripple and the US Securities and Exchange Commission (SEC) entered into its trial phase last week, with numerous industry participants expecting a resolution or a mutual agreement in the near future.
Most recently, American attorney James K. Filan revealed that Magistrate Judge Sarah Netburn has entered a new scheduling order. The action is focused on the motion for remedies and entry of final judgment. Judge Netburn ruled that the regulator should file its response by April 29, whereas Ripple is granted three business days thereafter to reply.
The latest action on the case follows Netburn’s recent nomination as District Judge in the Southern District of New York. She has previously shown a rather favorable stance toward Ripple’s native token, giving the XRP army hope that a decisive court win for the company might be on the horizon.
“My understanding about XRP is that not only does it have a currency value, but it has a utility, and that utility distinguishes it from bitcoin and ether,” the judge said in 2021 (according to attorney Jeremy Hogan).
The Possible Scenarios
Hogan recently suggested that the lawsuit might be officially closed sometime this summer, envisioning a $100 million settlement:
“I’m saying that the Judge will order 0 disgorgement but throws the SEC a bone and orders Ripple to pay a $100 million penalty.”
Previously, the SEC sought a $2 billion fine on the firm, alleging certain XRP sales violations. For its part, Ripple argued that its native cryptocurrency should not be classified as a security and, thus, not fall under the agency’s jurisdiction. The company’s chief legal officer, Stuart Alderoty, outlined several important reasons why the penalty should be no more than $10 million.
If you are curious to learn more about the legal spat and its potential impact on XRP and the entire cryptocurrency market, feel free to check our dedicated video below:
The post Ripple v. SEC Lawsuit Update: The Next Key Dates to Wait for appeared first on CryptoPotato.
Ripple’s Legal Battle With SEC Takes New Turn: Judge Sets Deadline for Responses
In the ever-evolving landscape of cryptocurrency regulation, the clash between Ripple Labs and the United States Securities and Exchange Commission (SEC) has been a focal point. Now, a new chapter unfolds as Magistrate Judge Sarah Netburn steers the course with a fresh scheduling order.
Despite her recent nomination as District Judge in the Southern District of New York, Judge Netburn’s commitment to overseeing the Ripple vs.·
For the full story, head over to TheCurrencyAnalytics.com.
Despite her recent nomination as District Judge in the Southern District of New York, Judge Netburn’s commitment to overseeing the Ripple vs.·
For the full story, head over to TheCurrencyAnalytics.com.
SEC’s Hammer Falls As Bitcoin Peaks, Top Analyst Predicts Market Crash
In a recent YouTube video, renowned crypto analyst Blockchain Backer sounded the alarm bells, predicting an imminent crash in the crypto market. His warning comes amidst heightened regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC), particularly targeting Ripple and ConsenSys, a blockchain software technology company.
Blockchain Backer’s analysis delves into the historical context, highlighting a pattern of negative news coinciding with significant market downturns. He points out that such events often emerge just as *BTC* hits all-time highs, creating an atmosphere of uncertainty and fear among investors.
Referencing past instances, Blockchain Backer recalls the tumultuous period in 2020 when the SEC initiated legal action against Ripple. He notes the subsequent impact on market sentiment, with many investors left reeling from the sudden onslaught of negative news.
The analyst emphasizes that while ConsenSys has received a “Wells notice” from the SEC, indicating potential enforcement action, the exact details of the regulatory crackdown remain undisclosed. Speculation abounds regarding the nature and severity of the forthcoming SEC complaint, with market participants bracing for potentially unsettling revelations.
Echoes of the Past
Blockchain Backer draws parallels with past regulatory interventions, such as the SEC’s actions against Coinbase and Binance in mid-2023, which coincided with a significant market low. He warns that similar regulatory scrutiny could exacerbate ongoing market volatility, potentially triggering a widespread sell-off.
One key point of contention highlighted by Blockchain Backer is the perceived lack of transparency among industry insiders. He suggests that insiders may have withheld crucial information regarding the SEC’s intentions, allowing them to capitalize on market movements ahead of public announcements.
Despite the prevailing uncertainty, Blockchain Backer advises investors to remain vigilant and prepare for further developments. He urges caution in interpreting market signals and emphasizes the importance of monitoring support levels for potential buying opportunities.
In the end, Blockchain Backer underscores the inevitability of regulatory scrutiny in a maturing crypto landscape. While the market braces for potential turbulence, investors are encouraged to stay informed and exercise prudence in navigating the evolving regulatory environment. All eyes remain on the unfolding situation, with the potential for significant repercussions across the broader digital asset market.
Blockchain Backer’s analysis delves into the historical context, highlighting a pattern of negative news coinciding with significant market downturns. He points out that such events often emerge just as *BTC* hits all-time highs, creating an atmosphere of uncertainty and fear among investors.
Referencing past instances, Blockchain Backer recalls the tumultuous period in 2020 when the SEC initiated legal action against Ripple. He notes the subsequent impact on market sentiment, with many investors left reeling from the sudden onslaught of negative news.
The analyst emphasizes that while ConsenSys has received a “Wells notice” from the SEC, indicating potential enforcement action, the exact details of the regulatory crackdown remain undisclosed. Speculation abounds regarding the nature and severity of the forthcoming SEC complaint, with market participants bracing for potentially unsettling revelations.
Echoes of the Past
Blockchain Backer draws parallels with past regulatory interventions, such as the SEC’s actions against Coinbase and Binance in mid-2023, which coincided with a significant market low. He warns that similar regulatory scrutiny could exacerbate ongoing market volatility, potentially triggering a widespread sell-off.
One key point of contention highlighted by Blockchain Backer is the perceived lack of transparency among industry insiders. He suggests that insiders may have withheld crucial information regarding the SEC’s intentions, allowing them to capitalize on market movements ahead of public announcements.
Despite the prevailing uncertainty, Blockchain Backer advises investors to remain vigilant and prepare for further developments. He urges caution in interpreting market signals and emphasizes the importance of monitoring support levels for potential buying opportunities.
In the end, Blockchain Backer underscores the inevitability of regulatory scrutiny in a maturing crypto landscape. While the market braces for potential turbulence, investors are encouraged to stay informed and exercise prudence in navigating the evolving regulatory environment. All eyes remain on the unfolding situation, with the potential for significant repercussions across the broader digital asset market.
SEC Accuses Geosyn Mining Co-Founders of Defrauding Investors
According to Foresight News, the U.S. Securities and Exchange Commission (SEC) has accused Caleb Joseph Ward and Jeremy George McNutt, co-founders of Bitcoin mining company Geosyn Mining, of defrauding approximately 64 investors of $5.6 million through service agreements sold as securities between November 2021 and December 2022.
The SEC alleges that Geosyn Mining's agreement to purchase and operate cryptocurrency mining machines on behalf of clients, for which it charged fees, falsely claimed to have signed a cheap energy contract with a power supplier. In reality, the costs were 40% to 50% higher than the rates communicated to clients. Furthermore, of the 1,400 mining machines that were supposed to be purchased under the service agreements, 400 were never bought. Additionally, most of the mining equipment that was purchased was never put into operation.
The SEC alleges that Geosyn Mining's agreement to purchase and operate cryptocurrency mining machines on behalf of clients, for which it charged fees, falsely claimed to have signed a cheap energy contract with a power supplier. In reality, the costs were 40% to 50% higher than the rates communicated to clients. Furthermore, of the 1,400 mining machines that were supposed to be purchased under the service agreements, 400 were never bought. Additionally, most of the mining equipment that was purchased was never put into operation.
US Judge Sets Schedule for Ripple's Motion Against SEC's New Expert Materials
According to U.Today, Sarah Netburn, a US Magistrate Judge for the United States District Court for the Southern District of New York, has set a schedule for Ripple's motion to strike new expert materials submitted by the U.S. Securities and Exchange Commission (SEC). The SEC has until April 29 to respond to the motion, after which Ripple will have three business days to file its reply.
Ripple recently opposed the SEC's motion for remedies, asking the court to reject the agency's request for disgorgement and prejudgment interest. The San Francisco-based company also argues that the SEC's civil penalty should not exceed $10 million, while the regulator is seeking approximately $2 billion in fines and penalties.
Ripple has also moved to strike the SEC's new expert materials, which include a declaration and two supporting exhibits prepared by Andrea Fox, an Assistant Chief Accountant in the SEC’s Division of Enforcement. Ripple contends that it did not have the opportunity to take Fox's deposition and that reopening remedies discovery to do so would result in unnecessary expense and delay.
The company further claims that the SEC was obligated to disclose Fox as an expert witness before the end of discovery. Ripple argues that this obligation cannot be circumvented by merely describing her as a summary witness. As a result, Ripple is urging the court to strike her declaration due to the SEC's late disclosure.
Ripple recently opposed the SEC's motion for remedies, asking the court to reject the agency's request for disgorgement and prejudgment interest. The San Francisco-based company also argues that the SEC's civil penalty should not exceed $10 million, while the regulator is seeking approximately $2 billion in fines and penalties.
Ripple has also moved to strike the SEC's new expert materials, which include a declaration and two supporting exhibits prepared by Andrea Fox, an Assistant Chief Accountant in the SEC’s Division of Enforcement. Ripple contends that it did not have the opportunity to take Fox's deposition and that reopening remedies discovery to do so would result in unnecessary expense and delay.
The company further claims that the SEC was obligated to disclose Fox as an expert witness before the end of discovery. Ripple argues that this obligation cannot be circumvented by merely describing her as a summary witness. As a result, Ripple is urging the court to strike her declaration due to the SEC's late disclosure.
Ripple Vs. SEC: New Developments Unveil Key Dates in Legal Battle
In the riveting legal saga between Ripple and the U.S. Securities and Exchange Commission (SEC), fresh developments have emerged, shedding light on pivotal dates and motions shaping the courtroom drama. Sarah Netburn, a respected US Magistrate Judge, has issued a scheduling order delineating the timeline for Ripple’s motion to strike the SEC’s recent expert materials.·
For the full story, head over to TheCurrencyAnalytics.com.
For the full story, head over to TheCurrencyAnalytics.com.
Arkadaşlar sosyal medya gücü zayıf olan, yeterince hacim ve likiditeye sahip olmayan, kendini geliştirmeyen ve buna rağmen binance da listeli olmaya devam eden coinlerin bir listesini aşağıda sizler için hazırladım.
📌EPX
📌GFT
📌FIRO
📌UNFI
📌UFT
📌OOKI
📌CREAM
Bu coinler uzun süredir hacim ve market değeri olarak yerlerde sürünüyorlar. Ara ara suni pumplar ile ayakta tutulmaya çalışılıyor. Sosyal medya da işlevleri yok ve uzun zamandır projelerinde hiçbir ilerleme yok. Bir delist sürecine gidilirse bu coinlerin ilk başta silinme ihtimali çok yüksek.
Yatırımları olanlar beklemeye devam etsin fakat güzel bir suni pumpla yükseltilirse yavaş yavaş kullanılabilirliği olan coinlere geçmeleri faydalarına olacaktır diye düşünüyorum..
TAKİPTE KALIN GELİŞMELERE GÖRE LİSTEYE EKLEMELER ve ÇIKARMALAR YAPILABİLİR..
#Binance #btc #Bitcoin #SEC #web3
📌EPX
📌GFT
📌FIRO
📌UNFI
📌UFT
📌OOKI
📌CREAM
Bu coinler uzun süredir hacim ve market değeri olarak yerlerde sürünüyorlar. Ara ara suni pumplar ile ayakta tutulmaya çalışılıyor. Sosyal medya da işlevleri yok ve uzun zamandır projelerinde hiçbir ilerleme yok. Bir delist sürecine gidilirse bu coinlerin ilk başta silinme ihtimali çok yüksek.
Yatırımları olanlar beklemeye devam etsin fakat güzel bir suni pumpla yükseltilirse yavaş yavaş kullanılabilirliği olan coinlere geçmeleri faydalarına olacaktır diye düşünüyorum..
TAKİPTE KALIN GELİŞMELERE GÖRE LİSTEYE EKLEMELER ve ÇIKARMALAR YAPILABİLİR..
#Binance #btc #Bitcoin #SEC #web3
Binance Wants the Court to Know US Government’s Position on USDC
Cryptocurrency exchange Binance and former CEO Changpeng “CZ” Zhao have filed notice with the court in its case with the United States Securities and Exchange Commission (SEC) to establish the government’s position on stablecoins as a security.
In an April 25 filing in U.S. District Court for the District of Columbia, lawyers for Binance and CZ filed a Notice of Supplemental Authority, bringing the court’s attention to the U.S. government’s arguments in its criminal case against Mango Markets exploiter Avraham Eisenberg. In that case, prosecutors argued there was “no factual basis” for treating USD Coin (USDC) as a security or putting the question to a jury.
Source: Courtlistener
The Justice Department used the argument against USDC as a security in its case against Eisenberg, who was found guilty of fraud and market manipulation on April 18. Having the government claim that a stablecoin was not a security seemingly under the SEC’s regulatory reach could bolster Binance’s arguments in the civil case.
The scope of the argument seemed limited to USDC, while the SEC’s case against Binance included BNB BNB and the stablecoin Binance USD (BUSD). The lawsuit, filed in June 2023, alleged that the crypto exchange and CZ allowed unregistered offers and sales of BNB and BUSD, as well as Binance’s Simple Earn, BNB Vault and staking programs.
Binance’s case with the SEC was ongoing at the time of publication, but the exchange and CZ settled with the U.S. Justice Department, Treasury Department and Commodity Futures Trading Commission in November 2023 for $4.3 billion. Zhao stepped down as CEO of the crypto exchange and pleaded guilty to one felony count as part of the deal. He is scheduled to be sentenced on April 30.
The crypto exchange remains under scrutiny from regulators and authorities across the globe. Two Binance executives were arrested in Nigeria after the firm said it intended to cease all transactions in the local fiat currency, the naira. Authorities in Canada also filed a class-action lawsuit against Binance on April 19, alleging the exchange sold unregistered crypto derivative products.
Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis
In an April 25 filing in U.S. District Court for the District of Columbia, lawyers for Binance and CZ filed a Notice of Supplemental Authority, bringing the court’s attention to the U.S. government’s arguments in its criminal case against Mango Markets exploiter Avraham Eisenberg. In that case, prosecutors argued there was “no factual basis” for treating USD Coin (USDC) as a security or putting the question to a jury.
Source: Courtlistener
The Justice Department used the argument against USDC as a security in its case against Eisenberg, who was found guilty of fraud and market manipulation on April 18. Having the government claim that a stablecoin was not a security seemingly under the SEC’s regulatory reach could bolster Binance’s arguments in the civil case.
The scope of the argument seemed limited to USDC, while the SEC’s case against Binance included BNB BNB and the stablecoin Binance USD (BUSD). The lawsuit, filed in June 2023, alleged that the crypto exchange and CZ allowed unregistered offers and sales of BNB and BUSD, as well as Binance’s Simple Earn, BNB Vault and staking programs.
Binance’s case with the SEC was ongoing at the time of publication, but the exchange and CZ settled with the U.S. Justice Department, Treasury Department and Commodity Futures Trading Commission in November 2023 for $4.3 billion. Zhao stepped down as CEO of the crypto exchange and pleaded guilty to one felony count as part of the deal. He is scheduled to be sentenced on April 30.
The crypto exchange remains under scrutiny from regulators and authorities across the globe. Two Binance executives were arrested in Nigeria after the firm said it intended to cease all transactions in the local fiat currency, the naira. Authorities in Canada also filed a class-action lawsuit against Binance on April 19, alleging the exchange sold unregistered crypto derivative products.
Magazine: Lazarus Group’s favorite exploit revealed — Crypto hacks analysis
Analysts Call It: XRP Primed For A 700% Surge – Details
Ripple’s XRP token finds itself navigating through turbulent waters. Over the past few months, XRP has experienced significant price fluctuations, leaving investors pondering the trajectory ahead. Despite a modest weekly gain, XRP remains below its 30-day average, signaling a bearish sentiment prevailing in the market.
XRP Price Wobbles: Downward Trend Or Temporary Dip?
At its current value of approximately $0.52, XRP reflects a market sentiment characterized by uncertainty. However, amidst the downward trend, a chorus of analysts is singing a different tune, foreseeing a potential surge in XRP’s price.
#XRP Imitating 2021 – Move:
Blue Section: The current trajectory suggests a possible reach of $1.4 by June-July, a key target. The price range between ($1.2 – $1.8) is a plausible target.
Yellow Section: Aiming for $4 is feasible if we follow a similar path to 2021.… pic.twitter.com/BMUJSbb5GQ
— EGRAG CRYPTO (@egragcrypto) April 25, 2024
Notable crypto analyst Egrag Crypto has outlined optimistic scenarios, projecting price ranges between $1.20 to $4 – or an increase of around 360%-700% – by mid-summer and September, respectively. These predictions, anchored in historical data and technical analysis, envision a bullish trajectory akin to XRP’s performance in 2021.
XRP market cap currently at $28.7 billion. Chart: TradingView.com
Beyond The Hype: Reasons For Caution
Amidst the fervor surrounding bullish predictions, a note of caution resonates within the cryptocurrency community. The inherent volatility of the market and lingering regulatory uncertainties serve as sobering reminders of the risks associated with investing in XRP.
While past performance may hint at future possibilities, it offers no guarantees in the ever-evolving landscape of digital assets. Moreover, even in the event of a favorable verdict for Ripple, regulatory scrutiny could persist, casting a pall over XRP’s potential growth trajectory.
Legal Battle: A Catalyst For Change?
Fueling the bullish sentiment are analysts like Dark Defender, who emphasize the pivotal role of Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC). The outcome of this protracted lawsuit, which alleges Ripple’s violation of securities laws, holds significant implications for XRP’s future.
Prepare your coffee so as not to get #distracted.$XRP is on the verge of a significant pattern, a moment that could shape its #future.
Remember, XRP is not a Security.
Focus on the last candle,
April, May, & June (3 Monthly),
which has no room anymore.
Perseverance. pic.twitter.com/xUFCSqTiGG
— Dark Defender (@DefendDark) April 23, 2024
Despite the regulatory cloud looming over Ripple, partial victories in court have bolstered optimism among supporters, hinting at a possible turnaround in XRP’s fortunes. Dark Defender, in particular, highlights the prospect of a “momentous pattern shift” upon a favorable resolution of the legal dispute, underlining its potential to catalyze a substantial price rally.
Investors On The Edge
The lawsuit, simmering for over three years, has cast a long shadow over XRP’s trajectory. With the SEC seeking a hefty $2 billion fine against Ripple for alleged securities violations, the stakes are undeniably high.
Ripple, on the other hand, maintains its innocence and contests the charges, offering a counter-penalty of a mere $10 million. Yet, the uncertainty stemming from the legal standoff has left investors on edge, wary of the potential ramifications on XRP’s classification and market dynamics.
Featured image from Science Photo Gallery, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Source: NewsBTC.com
The post Analysts Call It: XRP Primed For A 700% Surge – Details appeared first on Crypto Breaking News.
XRP Price Wobbles: Downward Trend Or Temporary Dip?
At its current value of approximately $0.52, XRP reflects a market sentiment characterized by uncertainty. However, amidst the downward trend, a chorus of analysts is singing a different tune, foreseeing a potential surge in XRP’s price.
#XRP Imitating 2021 – Move:
Blue Section: The current trajectory suggests a possible reach of $1.4 by June-July, a key target. The price range between ($1.2 – $1.8) is a plausible target.
Yellow Section: Aiming for $4 is feasible if we follow a similar path to 2021.… pic.twitter.com/BMUJSbb5GQ
— EGRAG CRYPTO (@egragcrypto) April 25, 2024
Notable crypto analyst Egrag Crypto has outlined optimistic scenarios, projecting price ranges between $1.20 to $4 – or an increase of around 360%-700% – by mid-summer and September, respectively. These predictions, anchored in historical data and technical analysis, envision a bullish trajectory akin to XRP’s performance in 2021.
XRP market cap currently at $28.7 billion. Chart: TradingView.com
Beyond The Hype: Reasons For Caution
Amidst the fervor surrounding bullish predictions, a note of caution resonates within the cryptocurrency community. The inherent volatility of the market and lingering regulatory uncertainties serve as sobering reminders of the risks associated with investing in XRP.
While past performance may hint at future possibilities, it offers no guarantees in the ever-evolving landscape of digital assets. Moreover, even in the event of a favorable verdict for Ripple, regulatory scrutiny could persist, casting a pall over XRP’s potential growth trajectory.
Legal Battle: A Catalyst For Change?
Fueling the bullish sentiment are analysts like Dark Defender, who emphasize the pivotal role of Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC). The outcome of this protracted lawsuit, which alleges Ripple’s violation of securities laws, holds significant implications for XRP’s future.
Prepare your coffee so as not to get #distracted.$XRP is on the verge of a significant pattern, a moment that could shape its #future.
Remember, XRP is not a Security.
Focus on the last candle,
April, May, & June (3 Monthly),
which has no room anymore.
Perseverance. pic.twitter.com/xUFCSqTiGG
— Dark Defender (@DefendDark) April 23, 2024
Despite the regulatory cloud looming over Ripple, partial victories in court have bolstered optimism among supporters, hinting at a possible turnaround in XRP’s fortunes. Dark Defender, in particular, highlights the prospect of a “momentous pattern shift” upon a favorable resolution of the legal dispute, underlining its potential to catalyze a substantial price rally.
Investors On The Edge
The lawsuit, simmering for over three years, has cast a long shadow over XRP’s trajectory. With the SEC seeking a hefty $2 billion fine against Ripple for alleged securities violations, the stakes are undeniably high.
Ripple, on the other hand, maintains its innocence and contests the charges, offering a counter-penalty of a mere $10 million. Yet, the uncertainty stemming from the legal standoff has left investors on edge, wary of the potential ramifications on XRP’s classification and market dynamics.
Featured image from Science Photo Gallery, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Source: NewsBTC.com
The post Analysts Call It: XRP Primed For A 700% Surge – Details appeared first on Crypto Breaking News.
SEC Sues Bitcoin Miner Geosyn for $5.6M Fraud
The SEC has initiated legal action against Geosyn Mining, LLC, and its founders, Caleb Joseph Ward and Jeremy George McNutt, accusing them of scamming investors of $5.6 million.
SEC sues Geosyn mining
The SEC filed a lawsuit in a Texas federal court accusing Geosyn of raising around $5.6 million from more than 60 investors from November 2021 to December 2022, according to a filing on April 24. The U.S. Securities and Exchange Commission claims that the company deceived investors by making false promises of purchasing, maintaining, and operating cryptocurrency mining equipment and offering to share the profits from mined cryptocurrencies like Bitcoin for a fee.
The complaint further alleges that Geosyn falsely represented its agreements with power suppliers, failed to reveal that it did not acquire certain mining machines, and ultimately did not deliver the promised services.
The SEC accused that the contracts promising to purchase and operate cryptocurrency mining equipment for clients in exchange for a fee were misleading. According to the allegations, Geosyn purported to have deals with power companies for low-cost electricity. However, the actual expenses were significantly higher, reaching 40-50% more than what was initially communicated to the customers.
Geosyn mining illicit gains
The Securities and Exchange Commission reported that the company distributed Bitcoin payments to its investors, leading them to assume that their mining equipment was functioning and generating profits despite the opposite being true. Additionally, the firm produced fake documents that presented made-up mining efficiency and earnings.
The SEC accused the company of generating $320,000 through Bitcoin mining operations but then distributing approximately $354,500 to its investors. To cover this shortfall, McNutt acquired additional Bitcoin and forwarded it to Ward, who then distributed it to the investors, as per the regulatory body’s statement.
Furthermore, the SEC alleges that Ward and McNutt diverted about $1.2 million of the funds from investors for personal expenditures, including dining, nightlife, holidays, firearms, timepieces, and legal costs. This includes a specific incident where McNutt is said to have used the company’s credit card to fund a $20,000 wedding celebration at a Las Vegas nightclub for Ward and a $49,000 family vacation to Disney World.
Additionally, the SEC points out that Ward and McNutt spent $22,000 of investor money on a breathalyzer and other costs linked to separate incidents involving McNutt and an employee of Geosyn, who were both reportedly arrested and convicted for DUI at a crypto event in June 2022.
The post SEC Sues Bitcoin Miner Geosyn for $5.6M Fraud first appeared on Coinfea.
SEC sues Geosyn mining
The SEC filed a lawsuit in a Texas federal court accusing Geosyn of raising around $5.6 million from more than 60 investors from November 2021 to December 2022, according to a filing on April 24. The U.S. Securities and Exchange Commission claims that the company deceived investors by making false promises of purchasing, maintaining, and operating cryptocurrency mining equipment and offering to share the profits from mined cryptocurrencies like Bitcoin for a fee.
The complaint further alleges that Geosyn falsely represented its agreements with power suppliers, failed to reveal that it did not acquire certain mining machines, and ultimately did not deliver the promised services.
The SEC accused that the contracts promising to purchase and operate cryptocurrency mining equipment for clients in exchange for a fee were misleading. According to the allegations, Geosyn purported to have deals with power companies for low-cost electricity. However, the actual expenses were significantly higher, reaching 40-50% more than what was initially communicated to the customers.
Geosyn mining illicit gains
The Securities and Exchange Commission reported that the company distributed Bitcoin payments to its investors, leading them to assume that their mining equipment was functioning and generating profits despite the opposite being true. Additionally, the firm produced fake documents that presented made-up mining efficiency and earnings.
The SEC accused the company of generating $320,000 through Bitcoin mining operations but then distributing approximately $354,500 to its investors. To cover this shortfall, McNutt acquired additional Bitcoin and forwarded it to Ward, who then distributed it to the investors, as per the regulatory body’s statement.
Furthermore, the SEC alleges that Ward and McNutt diverted about $1.2 million of the funds from investors for personal expenditures, including dining, nightlife, holidays, firearms, timepieces, and legal costs. This includes a specific incident where McNutt is said to have used the company’s credit card to fund a $20,000 wedding celebration at a Las Vegas nightclub for Ward and a $49,000 family vacation to Disney World.
Additionally, the SEC points out that Ward and McNutt spent $22,000 of investor money on a breathalyzer and other costs linked to separate incidents involving McNutt and an employee of Geosyn, who were both reportedly arrested and convicted for DUI at a crypto event in June 2022.
The post SEC Sues Bitcoin Miner Geosyn for $5.6M Fraud first appeared on Coinfea.
$XRP Technical Analysis
#XRP Market is just sideways since last 3 months, 0.4$ reacting as a weak support xrp might text the price sooner and it will be the best buying opportunity.
#SEC vs XRP
Many sources are saying that the Sec chairmen Grey Gensler is Secretly holdingnhuges bags xrp. We all know that today or tomorrow the orders will come out in the favor of Ripple and it will bring huge price change in Xrp.
Many of the people will come here and xrp is trash, but those who understand crypto know how strong project is xrp is, well everyone has its opinion so #dyor
#beyoglu
#XRP Market is just sideways since last 3 months, 0.4$ reacting as a weak support xrp might text the price sooner and it will be the best buying opportunity.
#SEC vs XRP
Many sources are saying that the Sec chairmen Grey Gensler is Secretly holdingnhuges bags xrp. We all know that today or tomorrow the orders will come out in the favor of Ripple and it will bring huge price change in Xrp.
Many of the people will come here and xrp is trash, but those who understand crypto know how strong project is xrp is, well everyone has its opinion so #dyor
#beyoglu
In the morning I saw some news , saying about a warning ,the #FBI sent to the united states citizens ,saying something like this :they cannot transfer cyptocurrecies that are not registered or comply with the united states law ,apparently they want to start a crackdown on #crypto but that makes me think even more that the goverment has many institutions like the #SEC and they cant do even the basics of writing a real steps by steps to follow for the companies of cryptocurrencies , so they can work together and now we not only have the SEC but the FBI too, question yourself if the goverment is here to help or not
John Deaton Joins Coinbase in SEC Appeal With Amicus Brief
John Deaton, who’s gunning for Elizabeth Warren’s Senate seat, just threw a big move in the legal tangle between Coinbase and the SEC. On April 26, he filed an amicus brief in the U.S. District Court for the Southern District of New York, making a strong play not for Coinbase directly, but for 4,701 of its users.
His aim is to show that the SEC isn’t really batting for the crypto crowd and needs to back off from just throwing around the Howey case without giving proper guidance.
A Closer Look
Deaton isn’t just another lawyer; this guy’s been vocal about how the SEC handles crypto companies. He mentioned past SEC cases like the one against Debt Box, where he feels the SEC was more about damaging the company than sticking to justice.
The court even slapped the SEC on the wrist for that one. And here’s the kicker—Deaton was advocating for Coinbase users way before he announced his Senate run. He first came into the picture in June 2023, right after the SEC went after Coinbase.
Deaton’s really sticking it to the SEC on social media too. He’s all over X, saying that it’s important for tech users to have a voice and not just be drowned out by a “biased and politically motivated agency.” But he’s clear—he’s not saying Coinbase should be the mouthpiece for crypto users either.
Thank you @EleanorTerrett. Please tune in to @LizClaman’s show, along with @CGasparino, as we discuss the @SECGov’s continued government overreach and unrelenting regulation by enforcement. Very soon, I will be filing an Amicus Brief on behalf of thousands of Coinbase customers,… https://t.co/kzgvAOZJgA
— John E Deaton (@JohnEDeaton1) April 26, 2024
Then there’s Paul Grewal, Coinbase’s top legal guy, who’s pushing the court to think about whether the term “investment contract” needs some kind of follow-up after a sale to be considered a security under SEC rules. This is big because it could reshape how crypto is treated legally.
Deaton’s Senate Run and Crypto Politics
Deaton’s legal moves could stir up his Senate campaign, especially with the election just around the corner. He and Warren don’t see eye to eye on crypto—she’s even been pushing for tighter controls on how crypto is used, especially concerning some serious illegal stuff.
But the bigger picture is how muddled the crypto regulations are. SEC Commissioners Hester Peirce and Mark Uyeda have been slamming the current state under Gensler’s watch. They’re not holding back, calling the standards “opaque and arbitrary” and slamming the lack of clear rules which, in their view, does nothing but scare off innovators.
Even the court’s scratching its head over how companies are supposed to know they’re stepping over the line with securities laws. The current case with Coinbase doesn’t even involve the original issuers of the crypto assets, which adds another layer of confusion.
On top of that, there’s a heap of government folks from both parties who are just as puzzled and frustrated with the SEC’s zigzagging. Letters are flying from both sides of the aisle, demanding clearer rules and less contradictory actions from the SEC. They’re tired of the guesswork in figuring out how the Howey test applies to new tech like blockchain.
And let’s not forget, before Gensler took over the SEC, he was all about crypto clarity while lecturing at MIT. Fast forward, and now his team is suggesting that buying or selling crypto could be stepping into legal hot water without people even knowing it.
In hearings, even the judges are poking holes in the SEC’s broad claims. They’re worried the SEC’s aggressive stance could stifle the whole sector. The courts are pushing for better explanations, especially about secondary market sales, but the SEC keeps playing it vague.
In a nutshell, Deaton’s stepping up for Coinbase users is about pushing back against an SEC that seems to keep things complex on purpose. And with his Senate campaign heating up, this legal battle could turn into a full-blown political drama.
His aim is to show that the SEC isn’t really batting for the crypto crowd and needs to back off from just throwing around the Howey case without giving proper guidance.
A Closer Look
Deaton isn’t just another lawyer; this guy’s been vocal about how the SEC handles crypto companies. He mentioned past SEC cases like the one against Debt Box, where he feels the SEC was more about damaging the company than sticking to justice.
The court even slapped the SEC on the wrist for that one. And here’s the kicker—Deaton was advocating for Coinbase users way before he announced his Senate run. He first came into the picture in June 2023, right after the SEC went after Coinbase.
Deaton’s really sticking it to the SEC on social media too. He’s all over X, saying that it’s important for tech users to have a voice and not just be drowned out by a “biased and politically motivated agency.” But he’s clear—he’s not saying Coinbase should be the mouthpiece for crypto users either.
Thank you @EleanorTerrett. Please tune in to @LizClaman’s show, along with @CGasparino, as we discuss the @SECGov’s continued government overreach and unrelenting regulation by enforcement. Very soon, I will be filing an Amicus Brief on behalf of thousands of Coinbase customers,… https://t.co/kzgvAOZJgA
— John E Deaton (@JohnEDeaton1) April 26, 2024
Then there’s Paul Grewal, Coinbase’s top legal guy, who’s pushing the court to think about whether the term “investment contract” needs some kind of follow-up after a sale to be considered a security under SEC rules. This is big because it could reshape how crypto is treated legally.
Deaton’s Senate Run and Crypto Politics
Deaton’s legal moves could stir up his Senate campaign, especially with the election just around the corner. He and Warren don’t see eye to eye on crypto—she’s even been pushing for tighter controls on how crypto is used, especially concerning some serious illegal stuff.
But the bigger picture is how muddled the crypto regulations are. SEC Commissioners Hester Peirce and Mark Uyeda have been slamming the current state under Gensler’s watch. They’re not holding back, calling the standards “opaque and arbitrary” and slamming the lack of clear rules which, in their view, does nothing but scare off innovators.
Even the court’s scratching its head over how companies are supposed to know they’re stepping over the line with securities laws. The current case with Coinbase doesn’t even involve the original issuers of the crypto assets, which adds another layer of confusion.
On top of that, there’s a heap of government folks from both parties who are just as puzzled and frustrated with the SEC’s zigzagging. Letters are flying from both sides of the aisle, demanding clearer rules and less contradictory actions from the SEC. They’re tired of the guesswork in figuring out how the Howey test applies to new tech like blockchain.
And let’s not forget, before Gensler took over the SEC, he was all about crypto clarity while lecturing at MIT. Fast forward, and now his team is suggesting that buying or selling crypto could be stepping into legal hot water without people even knowing it.
In hearings, even the judges are poking holes in the SEC’s broad claims. They’re worried the SEC’s aggressive stance could stifle the whole sector. The courts are pushing for better explanations, especially about secondary market sales, but the SEC keeps playing it vague.
In a nutshell, Deaton’s stepping up for Coinbase users is about pushing back against an SEC that seems to keep things complex on purpose. And with his Senate campaign heating up, this legal battle could turn into a full-blown political drama.
Consensys Sues SEC Over Ethereum Authority, Fearing Innovation Stagnation
According to Bloomberg, Consensys, a crypto software company, has filed a lawsuit in a federal court in Texas. The firm argues that if the Securities and Exchange Commission (SEC) is allowed to exert authority over Ethereum and its digital token Ether, it could potentially halt the blockchain, thereby 'crippling one of the internet’s greatest innovations.' This lawsuit comes at a time when Consensys is under increasing scrutiny.
In the lawsuit, Consensys is seeking a court ruling that Ether is not a security and therefore should not fall under the jurisdiction of the SEC. The company was founded by Joseph Lubin, who is also a co-founder of Ethereum. The SEC, however, has declined to comment on the lawsuit.
The case is officially known as Consensys Software Inc. vs. SEC, 4:24-cv-00369, and is being heard in the US District Court, Northern District of Texas, located in Fort Worth.
In the lawsuit, Consensys is seeking a court ruling that Ether is not a security and therefore should not fall under the jurisdiction of the SEC. The company was founded by Joseph Lubin, who is also a co-founder of Ethereum. The SEC, however, has declined to comment on the lawsuit.
The case is officially known as Consensys Software Inc. vs. SEC, 4:24-cv-00369, and is being heard in the US District Court, Northern District of Texas, located in Fort Worth.
Consensys, a Target for the SEC’s Assault on ETH, Is Fighting Back
Consensys, one of the main supporters of the Ethereum network, claims the U.S. Securities and Exchange Commission (SEC) is attempting a power grab over Ethereum {{ETH}}, the second-largest blockchain by market capitalization. And so, as natural, the Ethereum development company is suing, citing regulatory overreach.
This is an excerpt from The Node newsletter, a daily roundup of the most pivotal crypto news on CoinDesk and beyond. You can subscribe to get the full newsletter here.
“The U.S. Securities and Exchange Commission seeks to regulate ETH as a security, even though ETH bears none of the attributes of a security – and even though the SEC has previously told the world that ETH is not a security, and not within the SEC’s statutory jurisdiction,” according to the lawsuit filed in a Texas court on Thursday.
Over-and-above Consensys’ lawsuit is the growing trend of U.S. crypto companies and organizations willing to fight back against what they see as overzealous regulation. There are many unsettled questions regarding crypto law, and going on the offensive – possibly even bringing a case before the Supreme Court – would be one way to get answers.
See also: Consensys Sues SEC Over ‘Unlawful Seizure Of Authority’ Over Ethereum
Coinbase, for instance, is spending big to challenge a case brought by the SEC, and itself went to the courts to sue the agency seeking to get clarity on key questions of crypto law. Kraken and Uniswap, also facing SEC suits, vowed to fight back – and LBRY, now defunct, literally fought until the end.
Then there are the lobbyist organizations like the Blockchain Association, which this week sued the SEC over a narrow point of law, the definition of a “broker” that, if the agency had its way, would have broad impact over the crypto industry. In 2022, Coin Center sued the U.S. Treasury Department (and lost) for sanctioning crypto mixer Tornado Cash.
“Consensys is joining some of the leading companies in the space in a broad industry pushback against regulation by enforcement that is destructive to the future of the internet. This is the responsibility of every Web3 company that has the capital and expertise to navigate the U.S. power structures,” Lex Sokolin, founder of Generative Ventures and a former Consensys employee, told CoinDesk in an interview.
"It's invigorating to witness top actors in our field engaging with regulators to seek clarity in our exponentially growing industry,” CEO of the dYdX Foundation and former Consensys lawyer Charles d'Haussy told CoinDesk.
About face
A key argument of Consensys’ suit is that the SEC had already declared that ETH is not a security, all the way back in 2018 when then SEC Director William Hinman gave a speech stating as much. It confirmed this position in 2021, when the first ETH futures launched in the U.S., putting the asset under the purview of the Commodities Futures Trading Commission (CFTC).
There’s an argument to be made that the SEC had a fresh start to reevaluate Ethereum after it dropped mining for proof-of-stake. However, some experts note the SEC approved additional futures products after that happened, again dampening the argument that ETH is a security.
When news first dropped that the SEC was possibly investigating the non-profit Ethereum Foundation and subpoenaing firms for information related to Ethereum’s development, many experts interviewed by CoinDesk agreed that it would be illegal to reverse course after so much time. An entire multi-billion dollar industry has already been built on the understanding that ETH is a commodity.
It’s “the whole ‘you can't just arbitrarily change your mind and damage people for hundreds of billions of dollars after a decade’ and also by the way the CFTC will likely fight back” argument, Austin Campbell, a Columbia Business School assistant professor and former adviser to stablecoin issuer Paxos, told CoinDesk in an interview at the time.
See also: Why the SEC Shouldn't Classify ETH as a Security
"The case we have filed today is intended to preserve access for the thousands of developers, market participants, and institutions who have a stake in the world's second largest blockchain," Joe Lubin, Ethereum co-founder and Consensys CEO, said in a statement. "The SEC cannot be allowed to arbitrarily expand its jurisdiction.”
According to the complaint, Consensys is looking to clarify three particular points: first, that ETH is a commodity; second, that the most popular Ethereum wallet, developed by Consensys, is not a broker; and lastly to get an injunction to leave developers alone and preemptively prevent the SEC from suing the company.
In addition to receiving multiple subpoenas in 2023 and in recent weeks, Consensys’ court filing also disclosed that the company received a Wells Notice on April 10, or an indication that the SEC is working to build a case. According to Consensys Senior Counsel and Director of Global Regulatory Bill Hughes the company complied with the “voluntary” requests for information.
Notably, the SEC asked for information not only about Consensys itself – including questions about its ETH holdings and treasury sales, and whether it contributed to the Ethereum Improvement Proposals (EIP) that led to Ethereum’s switch to proof-of-stake – but also questions about open source developers.
“The fact that they're looking at open source protocol developers, certainly with an eye on building a case to enforce, really struck us as way out of bounds,” Hughes said, adding that Consensys was asked to provide lists of coders and their GitHub repositories. “To some degree, they are redefining their regulatory purview and becoming an internet regulator.
“This is not something we necessarily enjoy doing or want to do. But to a large extent it's necessary to defend the use of and building upon Ethereum and really all programmable blockchains in the United States,” he added.
‘Remarkable acceleration’
While standing up for open source development may be motivating factor, Hughes suggested that the company was forced to move by what they saw as a “remarkable acceleration in their aggressiveness with respect to Ethereum” and their interactions with the agency that “made it clear that they viewed [Consensys] as the target for an Ethereum enforcement action.”
“Should they be left unopposed they could do meaningful harm to our company in particular and the broader ecosystem. It comes to a point where you just can't wait any longer,” he said.
In particular, the SEC appears to be building a case that MetaMask Swaps, a decentralized exchange aggregator for swapping tokens that charges a 0.875% transaction fee, and MetaMask Staking, a relatively recent product essentially limited to users with 32 ETH to spare to become an Ethereum validator that takes a 10% cut of staking rewards, are in violation of securities or brokerage laws. (Several state regulators have also challenged the legal ground of staking.)
“The end goal of the suit is to get the judge to agree and issue an order finding that Ethereum is a commodity, that the SEC has been acting beyond its statutory authority and in violation of procedures it's required to comply with, and that peer to peer software that people use to read and transact with themselves on the blockchain is not a broker,” Hughes said.
But other experts CoinDesk spoke to say the case may have an even loftier vision.
“This Consensys lawsuit is a really big deal. They’re positioning themselves to challenge the SEC’s authority to regulate crypto,” University of Kentucky law professor Brian Frye said in an interview, noting the case was filed it in the 5th Circuit — which is “notoriously anti-government and anti-regulatory.”
See also: ‘It Can Be Said With Confidence the SEC Is Investigating Ethereum’: Consensys’ Bill Hughes Talks Crypto Law
In other words, Consensys may be trying to build a case worthy of taking before the Supreme Court. Frye noted that this particular SCOTUS would likely be willing to “revisit and narrow” the scope of the Howey test, one of the ways the SEC determines whether something is a security, and the basis for the majority of its litigation against crypto firms.
“Consensys hired Wachtell, which is the most expensive law firm in the world. That means they are really, really serious,” Frye said. It’s worth noting that Consensys recently relocated to Texas (its new listed address is a WeWork) from New York, which would make establishing jurisdiction in the 5th Circuit easier. “If that happens, there’s just no way SCOTUS doesn’t take the case,” Frye added.
For his part, Hughes denied the claim, saying that Texas is business-friendly and home to a burgeoning crypto scene. (CoinDesk’s Consensus 2024 conference will be held in Austin in May, for instance.) “By contrast, New York was getting a little chillier,” he said.
In any case, Consensys’ legal maneuver certainly changes the dynamic between the firm and would-be regulator. Its lawsuit doesn’t necessarily preclude the SEC from filing its own case, or unilaterally declaring ETH a security (which it has been reluctant to do so far), which would essentially make it illegal to spend ETH in the U.S.
But the situation is “meaningfully different” now that Consensys is a plaintiff rather than just a target. At the very least it’s one way to show the world that the SEC’s Enforcement Division, and likely leadership, “considers Ethereum security” without having the gall to state it directly.
“We think our action is appropriate because we think that the right answer needs to be gotten to and we're happy to call the question,” Hughes said.
See also: Samourai Wallet Charges Raise Existential Questions About Crypto Privacy
This is an excerpt from The Node newsletter, a daily roundup of the most pivotal crypto news on CoinDesk and beyond. You can subscribe to get the full newsletter here.
“The U.S. Securities and Exchange Commission seeks to regulate ETH as a security, even though ETH bears none of the attributes of a security – and even though the SEC has previously told the world that ETH is not a security, and not within the SEC’s statutory jurisdiction,” according to the lawsuit filed in a Texas court on Thursday.
Over-and-above Consensys’ lawsuit is the growing trend of U.S. crypto companies and organizations willing to fight back against what they see as overzealous regulation. There are many unsettled questions regarding crypto law, and going on the offensive – possibly even bringing a case before the Supreme Court – would be one way to get answers.
See also: Consensys Sues SEC Over ‘Unlawful Seizure Of Authority’ Over Ethereum
Coinbase, for instance, is spending big to challenge a case brought by the SEC, and itself went to the courts to sue the agency seeking to get clarity on key questions of crypto law. Kraken and Uniswap, also facing SEC suits, vowed to fight back – and LBRY, now defunct, literally fought until the end.
Then there are the lobbyist organizations like the Blockchain Association, which this week sued the SEC over a narrow point of law, the definition of a “broker” that, if the agency had its way, would have broad impact over the crypto industry. In 2022, Coin Center sued the U.S. Treasury Department (and lost) for sanctioning crypto mixer Tornado Cash.
“Consensys is joining some of the leading companies in the space in a broad industry pushback against regulation by enforcement that is destructive to the future of the internet. This is the responsibility of every Web3 company that has the capital and expertise to navigate the U.S. power structures,” Lex Sokolin, founder of Generative Ventures and a former Consensys employee, told CoinDesk in an interview.
"It's invigorating to witness top actors in our field engaging with regulators to seek clarity in our exponentially growing industry,” CEO of the dYdX Foundation and former Consensys lawyer Charles d'Haussy told CoinDesk.
About face
A key argument of Consensys’ suit is that the SEC had already declared that ETH is not a security, all the way back in 2018 when then SEC Director William Hinman gave a speech stating as much. It confirmed this position in 2021, when the first ETH futures launched in the U.S., putting the asset under the purview of the Commodities Futures Trading Commission (CFTC).
There’s an argument to be made that the SEC had a fresh start to reevaluate Ethereum after it dropped mining for proof-of-stake. However, some experts note the SEC approved additional futures products after that happened, again dampening the argument that ETH is a security.
When news first dropped that the SEC was possibly investigating the non-profit Ethereum Foundation and subpoenaing firms for information related to Ethereum’s development, many experts interviewed by CoinDesk agreed that it would be illegal to reverse course after so much time. An entire multi-billion dollar industry has already been built on the understanding that ETH is a commodity.
It’s “the whole ‘you can't just arbitrarily change your mind and damage people for hundreds of billions of dollars after a decade’ and also by the way the CFTC will likely fight back” argument, Austin Campbell, a Columbia Business School assistant professor and former adviser to stablecoin issuer Paxos, told CoinDesk in an interview at the time.
See also: Why the SEC Shouldn't Classify ETH as a Security
"The case we have filed today is intended to preserve access for the thousands of developers, market participants, and institutions who have a stake in the world's second largest blockchain," Joe Lubin, Ethereum co-founder and Consensys CEO, said in a statement. "The SEC cannot be allowed to arbitrarily expand its jurisdiction.”
According to the complaint, Consensys is looking to clarify three particular points: first, that ETH is a commodity; second, that the most popular Ethereum wallet, developed by Consensys, is not a broker; and lastly to get an injunction to leave developers alone and preemptively prevent the SEC from suing the company.
In addition to receiving multiple subpoenas in 2023 and in recent weeks, Consensys’ court filing also disclosed that the company received a Wells Notice on April 10, or an indication that the SEC is working to build a case. According to Consensys Senior Counsel and Director of Global Regulatory Bill Hughes the company complied with the “voluntary” requests for information.
Notably, the SEC asked for information not only about Consensys itself – including questions about its ETH holdings and treasury sales, and whether it contributed to the Ethereum Improvement Proposals (EIP) that led to Ethereum’s switch to proof-of-stake – but also questions about open source developers.
“The fact that they're looking at open source protocol developers, certainly with an eye on building a case to enforce, really struck us as way out of bounds,” Hughes said, adding that Consensys was asked to provide lists of coders and their GitHub repositories. “To some degree, they are redefining their regulatory purview and becoming an internet regulator.
“This is not something we necessarily enjoy doing or want to do. But to a large extent it's necessary to defend the use of and building upon Ethereum and really all programmable blockchains in the United States,” he added.
‘Remarkable acceleration’
While standing up for open source development may be motivating factor, Hughes suggested that the company was forced to move by what they saw as a “remarkable acceleration in their aggressiveness with respect to Ethereum” and their interactions with the agency that “made it clear that they viewed [Consensys] as the target for an Ethereum enforcement action.”
“Should they be left unopposed they could do meaningful harm to our company in particular and the broader ecosystem. It comes to a point where you just can't wait any longer,” he said.
In particular, the SEC appears to be building a case that MetaMask Swaps, a decentralized exchange aggregator for swapping tokens that charges a 0.875% transaction fee, and MetaMask Staking, a relatively recent product essentially limited to users with 32 ETH to spare to become an Ethereum validator that takes a 10% cut of staking rewards, are in violation of securities or brokerage laws. (Several state regulators have also challenged the legal ground of staking.)
“The end goal of the suit is to get the judge to agree and issue an order finding that Ethereum is a commodity, that the SEC has been acting beyond its statutory authority and in violation of procedures it's required to comply with, and that peer to peer software that people use to read and transact with themselves on the blockchain is not a broker,” Hughes said.
But other experts CoinDesk spoke to say the case may have an even loftier vision.
“This Consensys lawsuit is a really big deal. They’re positioning themselves to challenge the SEC’s authority to regulate crypto,” University of Kentucky law professor Brian Frye said in an interview, noting the case was filed it in the 5th Circuit — which is “notoriously anti-government and anti-regulatory.”
See also: ‘It Can Be Said With Confidence the SEC Is Investigating Ethereum’: Consensys’ Bill Hughes Talks Crypto Law
In other words, Consensys may be trying to build a case worthy of taking before the Supreme Court. Frye noted that this particular SCOTUS would likely be willing to “revisit and narrow” the scope of the Howey test, one of the ways the SEC determines whether something is a security, and the basis for the majority of its litigation against crypto firms.
“Consensys hired Wachtell, which is the most expensive law firm in the world. That means they are really, really serious,” Frye said. It’s worth noting that Consensys recently relocated to Texas (its new listed address is a WeWork) from New York, which would make establishing jurisdiction in the 5th Circuit easier. “If that happens, there’s just no way SCOTUS doesn’t take the case,” Frye added.
For his part, Hughes denied the claim, saying that Texas is business-friendly and home to a burgeoning crypto scene. (CoinDesk’s Consensus 2024 conference will be held in Austin in May, for instance.) “By contrast, New York was getting a little chillier,” he said.
In any case, Consensys’ legal maneuver certainly changes the dynamic between the firm and would-be regulator. Its lawsuit doesn’t necessarily preclude the SEC from filing its own case, or unilaterally declaring ETH a security (which it has been reluctant to do so far), which would essentially make it illegal to spend ETH in the U.S.
But the situation is “meaningfully different” now that Consensys is a plaintiff rather than just a target. At the very least it’s one way to show the world that the SEC’s Enforcement Division, and likely leadership, “considers Ethereum security” without having the gall to state it directly.
“We think our action is appropriate because we think that the right answer needs to be gotten to and we're happy to call the question,” Hughes said.
See also: Samourai Wallet Charges Raise Existential Questions About Crypto Privacy
Uniswap Token Tumbles as SEC Scrutiny Sparks Investor Exodus
The value of Uniswap's UNI token fell by 16% to $9.37 following a Wells Notice from the SEC, signaling potential legal challenges for the decentralized exchange.
Uniswap 'whales' have been rapidly offloading their UNI holdings, with Lookonchain reporting that three such investors have sold off 2.03 million UNI, causing a swift $20 million drop in Uniswap’s valuation.
Major UNI stakeholders are transferring assets to Binance; one unloaded 1.25 million UNI, and another exchanged 472,000 UNI for $4.6 million in USDC, turning a profit of $1.67 million. Further sales are contributing to the token's price decline.
The account whitzardflow.eth had to liquidate 107,010 UNI ($1M) to cover a stablecoin debt after UNI’s price dropped.
Uniswap founder Hayden Adams expressed determination to fight the SEC's warning, affirming the legality of Uniswap's operations and his commitment to the DeFi sector.
This standoff with the SEC suggests a looming lengthy legal dispute with far-reaching implications for DeFi's future, raising anxiety in the crypto market about the repercussions of regulatory scrutiny for DEXs and investment security.
Uniswap 'whales' have been rapidly offloading their UNI holdings, with Lookonchain reporting that three such investors have sold off 2.03 million UNI, causing a swift $20 million drop in Uniswap’s valuation.
Major UNI stakeholders are transferring assets to Binance; one unloaded 1.25 million UNI, and another exchanged 472,000 UNI for $4.6 million in USDC, turning a profit of $1.67 million. Further sales are contributing to the token's price decline.
The account whitzardflow.eth had to liquidate 107,010 UNI ($1M) to cover a stablecoin debt after UNI’s price dropped.
Uniswap founder Hayden Adams expressed determination to fight the SEC's warning, affirming the legality of Uniswap's operations and his commitment to the DeFi sector.
This standoff with the SEC suggests a looming lengthy legal dispute with far-reaching implications for DeFi's future, raising anxiety in the crypto market about the repercussions of regulatory scrutiny for DEXs and investment security.
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XRP Reaches New High in Millionaire Addresses, SEC Postpones Ethereum ETF Decision, and Nakamoto's Final Bitcoin Words Remembered
According to U.Today, the number of addresses holding at least one million XRP has reached a new all-time high, according to a post from Santiment on April 23. The figure currently stands at 2,013, just one wallet short of surpassing the previous record set in June 2023. This increase in millionaire addresses coincides with a significant price boom for the token, which almost doubled in value to about $1 per token within a month. The last time such a spike was observed was in June 2023, when XRP was declared a non-security in the SEC v. Ripple case, leading to a surge in the token's price.
In other news, the SEC has delayed its decision on a spot Ethereum ETF proposal submitted by New York-based investment firm Franklin Templeton. The firm filed its application in February, joining other contenders like BlackRock. The regulator has stated that it is acceptable to postpone the decision to allow sufficient time for reviewing the application. Despite approving numerous applications for spot Bitcoin ETFs in January, the chances of the SEC accepting applications for spot Ethereum ETFs remain slim.
April 23, 2011, marks a significant date in Bitcoin's history. On this day, 13 years ago, the cryptocurrency's elusive creator, Satoshi Nakamoto, sent his final message on the Bitcoin ecosystem. This event took place just four months after Nakamoto's last public statement in December 2010. 'I've moved on to other things. It's in good hands with Gavin and everyone,' Nakamoto wrote in emails that were later made public by former Bitcoin Core engineer Mike Hearn. The reasons for Nakamoto's departure from the project remain a topic of speculation, with theories ranging from external pressures such as a purported CIA investigation into Gavin Andresen, a key member of the cryptography community, to attempts to align Bitcoin with projects like WikiLeaks donations.
In other news, the SEC has delayed its decision on a spot Ethereum ETF proposal submitted by New York-based investment firm Franklin Templeton. The firm filed its application in February, joining other contenders like BlackRock. The regulator has stated that it is acceptable to postpone the decision to allow sufficient time for reviewing the application. Despite approving numerous applications for spot Bitcoin ETFs in January, the chances of the SEC accepting applications for spot Ethereum ETFs remain slim.
April 23, 2011, marks a significant date in Bitcoin's history. On this day, 13 years ago, the cryptocurrency's elusive creator, Satoshi Nakamoto, sent his final message on the Bitcoin ecosystem. This event took place just four months after Nakamoto's last public statement in December 2010. 'I've moved on to other things. It's in good hands with Gavin and everyone,' Nakamoto wrote in emails that were later made public by former Bitcoin Core engineer Mike Hearn. The reasons for Nakamoto's departure from the project remain a topic of speculation, with theories ranging from external pressures such as a purported CIA investigation into Gavin Andresen, a key member of the cryptography community, to attempts to align Bitcoin with projects like WikiLeaks donations.
Consensys Sues SEC Over Ethereum Classification
Consensys Software Inc. has sued the U.S. Securities and Exchange Commission (SEC) for trying to classify Ethereum as a security, rather than acknowledging it as a global computing platform.
The lawsuit was filed in the Northern District of Texas on April 25. This legal action challenges the SEC's hesitation to approve trading of spot Ether ETFs, which is expected to be decided by May 23-24.
Ethereum is widely recognized not as an investment vehicle but as an essential web3 platform. It supports decentralized finance (DeFi) platforms like Uniswap, which are not considered securities brokers.
This positioning helps protect Ethereum's status outside the SEC’s regulatory scope, especially as the decision on the spot Ether ETF looms.
The SEC's scrutiny extends to Ethereum-based DeFi projects after issuing a Wells notice to Uniswap.
However, the Ethereum community maintains that it should be seen as a commodity, supported by the Commodity Futures Trading Commission (CFTC).
Through its lawsuit, Consensys argues that the SEC’s aggressive stance could threaten U.S. leadership in the next generation of internet technologies.
The company insists that Ethereum remains a vital blockchain platform that should not be constrained by inappropriate securities laws.
The Ethereum network is a leader in the web3 space, with a market cap of around $83 billion in stablecoins and $54 billion in total value locked.
Despite recent price drops, Ethereum supporters are optimistic about a potential rebound and achieving new price highs.
The outcome of this lawsuit could significantly impact the regulatory framework for digital assets in the U.S. and the future role of Ethereum in internet evolution.
This case is pivotal for Consensys and the broader U.S. crypto industry, which employs a significant portion of the global cryptocurrency workforce.
The lawsuit was filed in the Northern District of Texas on April 25. This legal action challenges the SEC's hesitation to approve trading of spot Ether ETFs, which is expected to be decided by May 23-24.
Ethereum is widely recognized not as an investment vehicle but as an essential web3 platform. It supports decentralized finance (DeFi) platforms like Uniswap, which are not considered securities brokers.
This positioning helps protect Ethereum's status outside the SEC’s regulatory scope, especially as the decision on the spot Ether ETF looms.
The SEC's scrutiny extends to Ethereum-based DeFi projects after issuing a Wells notice to Uniswap.
However, the Ethereum community maintains that it should be seen as a commodity, supported by the Commodity Futures Trading Commission (CFTC).
Through its lawsuit, Consensys argues that the SEC’s aggressive stance could threaten U.S. leadership in the next generation of internet technologies.
The company insists that Ethereum remains a vital blockchain platform that should not be constrained by inappropriate securities laws.
The Ethereum network is a leader in the web3 space, with a market cap of around $83 billion in stablecoins and $54 billion in total value locked.
Despite recent price drops, Ethereum supporters are optimistic about a potential rebound and achieving new price highs.
The outcome of this lawsuit could significantly impact the regulatory framework for digital assets in the U.S. and the future role of Ethereum in internet evolution.
This case is pivotal for Consensys and the broader U.S. crypto industry, which employs a significant portion of the global cryptocurrency workforce.
