SEC: Friend or Foe of Decentralization?

The Truth About SEC's Cryptocurrency Ties

Russian DeFi
March 21, 2023

Is SEC The Shining Knight Or Enemy Of Decentralization🤺?

One pays $30M on SEC charges.

The other gets the SEC to take a hike.

It's time to find out ⤵️

Key Takeaways🍿

・SEC’s Gary Gensler unveils plan to expand custody rules to include assets like crypto👨‍⚖️

・Kraken pays off $30 Million to settle all SEC charges.💰

・CEO Brian Armstrong assures users that all staking services will continue.🔵

Keep reading below 👇️

Grayscale BTC Trust Goes Offensive Against SEC

They are bringing their argument for a spot bitcoin   ETF in front of judges.

Genevieve Roch-Decter made great points about the whole situation.🧵

The SEC refused to let Grayscale create a spot Bitcoin ETF
Grayscale sued the SEC, and the case is in court today.
Here’s why the future of Bitcoin could be at stake 🧵
— Genevieve Roch-Decter, CFA (@GRDecter)
Mar 7, 2023

Who is Safe?

BKCoin, an investment adviser, had its assets frozen by the SEC on allegations that it had committed crypto fraud amounting to $100 million. Cointelegraph reports -

SEC continues streak of enforcement actions, targets BKCoin for alleged $100M fraud

According to the SEC complaint unsealed on March 6, BKCoin promised to invest investor funds in crypto, but allegedly used millions for Ponzi-like payments and personal expenses.

cointelegraph.com/news/sec-continues-streak-of-enforcement-actions-targets-bkcoin-for-alleged-100m-fraud

The Pressure is on the Rise♨️

SEC is attempting to extend its jurisdiction to sales of mining equipment without warning. MetaLawMan dives into this -

1/ Shocking New Case Filed by the SEC
The SEC has just filed a case alleging that:
Selling crypto mining equipment and offering hosting services for the equipment constitutes an "investment contract" under Howey.
Yes. You read that right.
Here's what you need to know. 👇
— MetaLawMan (@MetaLawMan)
Mar 6, 2023

Coinbase Staking Will Continue

CEO Brian Armstrong assures users that all staking services will continue. Hope SEC gets the message from Coinbase by now. Cointelegraph reports -

Coinbase reiterates that staking services will continue, despite SEC crackdown

In a new email to customers, Coinbase outlined that the firm “acts only as a service provider connecting you, the validators and the protocol.”

cointelegraph.com/news/coinbase-reiterates-that-staking-services-will-continue-despite-sec-crackdown

Kraken Settles for $30m

The SEC’s investigation has ended with Kraken paying $30 Million to settle all charges. It also means no more staking for Kraken. Update on SEC website -

Kraken to Discontinue Unregistered Offer and Sale of Crypto Asset Staking-As-A-Service Program and Pay $30 Million to Settle SEC Charges

SEC.gov

www.sec.gov/news/press-release/2023-25

This is Not a Conspiracy!

SEC sued Ripple for failing to register $XRP as a security. The result is expected any day. But ETH is currently under pressure for being a security. Here’s a Forbes piece on this -

Crypto Regulations Update: The SEC Goes After Unregistered Securities

After a particularly volatile year, the SEC has been cracking down on crypto companies. Here’s what prompted these crackdowns and what to expect moving forward.

www.forbes.com/sites/qai/2023/02/15/crypto-regulations-update-the-sec-goes-after-unregistered-securities/?sh=7ef7256377f6

SEC Expands Custody Rules

SEC’s Gary Gensler unveils plan to expand custody rules to include assets like crypto. This alone threatens Coinbase & crypto exchanges that have institutional custody services.

Read the CNBC update on this here 🍿

Some Regulators Pushing to Classify Crypto as Securities

Many anti-crypto regulators & politicians are pushing for every single crypto to be classified as a security, including BTC.

The crypto industry in the USA won't go down without a fight. Coinbureau talks about this -