Paradigm claimed the SEC is attempting to use the allegations in its complaint to alter the law without adhering to the established rulemaking process.
The Securities and Exchange Commission, or SEC, is an independent agency within the United States government tasked with regulating the securities markets in a way that protects the public from fraud, maintains fair and efficient markets, and facilitates healthy capital formation in the U.S. and its jurisdictions.
The emergence of cryptocurrencies with the advent of Bitcoin (BTC) directly challenged the hegemonic order of the legacy financial system and quickly provoked ire and distrust from various regulatory authorities.
The SEC, however, remained largely quiet on securities law applicability to cryptocurrencies and fundraising events until July 2017 when the agency published their report on the DAO project, concluding that the sale of DAO tokens was in fact an unregistered securities offering and therefore subject to securities laws. This was published in the context of the initial coin offering, or ICO, craze of 2017 to2018.
Since then, the SEC has slowly brought cases against various projects such as halting the launch of the highly anticipated Telegram blockchain network, TON, in October 2019, thus setting legal precedent for all current and future blockchain ventures.
The SEC is one of the most powerful regulatory agencies in the world, as most countries often wait to see how the U.S. regulates certain industries before implementing their own legislation and regulatory frameworks.
Leaked Slack conversations between Terraform Labs co-founders Do Kwon and Daniel Shin have exposed their contemplation of orchestrating fraudulent transactions.5719
A new report indicated Bitcoin ETFs could release $600 billion in new demand — double Bitcoin’s current market cap. Here’s some math behind the estimates.8058
Bloomberg analyst Eric Balchunas speculated that the SEC may have pressured Valkyrie to halt ETH futures contract purchases until the ETF was officially approved.8497
Ether’s price is up today as traders weigh the possibility of an Ethereum futures ETF launching and a weaker than anticipated inflation print.30707
Once Ethereum futures ETF and spot Bitcoin ETF applications get approved, there will be a marketing war like we’ve never seen says, Bloomberg ETF analyst Eric Balchunas.4514
Invesco, Bitwise and Valkyrie were also hit with delays by the U.S. Securities and Exchange Commission.28679
Some analysts have speculated the SEC will announce decisions or delays on crypto exchange-traded funds before Sept. 30 in anticipation of a U.S. government shutdown.6291
The U.S. SEC chief was asked whether the purchase of Pokemon trading cards is a security transaction and whether Bitcoin is a commodity.8140
An impending U.S. government shutdown may be accelerating the launch of Ether futures ETFs, analysts suggest.15913
The Terraform Labs co-founder has pushed back against the SEC’s request to question him in the United States.11494
The commission also designated a longer period to decide on spot Bitcoin ETF applications from ARK 21Shares and Global X on Sept. 26.7264
The SEC’s controversial Staff Accounting Bulletin 121 has received much criticism since its publication in March 2022.17189
During a hearing on Sept. 27, Emmer hinted that Gary Gensler’s Wall Street background limits his impartiality as an industry regulator.12316
SEC Chair Gary Gensler is set to highlight a new focus on AI, predictive data analytics and the cryptocurrency sector before the U.S. Financial Services Committee.6277