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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC’s Gary Gensler: Crypto Industry Mixes Customer Funds With Its Own – Bloomberg
In his Bloomberg interview on Friday, Gensler took particular issue with how crypto exchanges often play multiple roles. He suggested that their business models can create significant conflicts of interest. “We don’t let the New York Stock Exchange also run a hedge fund and trade on the exchange; why would we do it here?” Gensler […]
After Kraken Crackdown, Are the Remaining Crypto Giants Staring Down the Barrel of the US Government’s Gun?
“The SEC has never said what a compliant crypto exchange would look like under a securities regulatory regime,” said TuongVy Le, who handles regulatory strategy at Bain Capital Crypto. “There’s just a lack of clarity there.” Patrick Daugherty, a lawyer who once worked at the SEC but now represents crypto companies and exchanges, put it […]
FTX collapse: Top House Republicans scrutinize SEC investigation of failed crypto exchange
Top House Republicans on Friday sent a letter to the Securities and Exchange Commission as Congress scrutinizes the agency’s actions against Sam Bankman-Fried, former CEO of failed cryptocurrency exchange FTX. In a letter addressed to SEC Chairman Gary Gensler, Reps. Patrick McHenry, R-N.C., chairman of the House Financial Services Committee, and Bill Huizenga, R-Mich., chair […]
SEC’s Gensler Warns Crypto Firms to Take Note of Kraken Case Over Staking – Bloomberg
The fallout from Kraken’s settlement with the SEC has quickly rippled across the industry with shares from Coinbase Global Inc., which also offers staking, tumbling on the news. Kraken agreed to pay $30 million to settle the allegations and to discontinue staking in the US. “Other platforms should take note of this and seek to […]
Kraken Down: Statement on SEC v. Payward Ventures, Inc., et al.
Most concerning, though, is that our solution to a registration violation is to shut down entirely a program that has served people well. The program will no longer be available in the United States, and Kraken is enjoined from ever offering a staking service in the United States, registered or not. A paternalistic and lazy […]
Adani Faces Uphill Battle in Potential Hindenburg Research Suit
Companies targeted by short reports often look to respond by suing the report issuers. Those that follow through with litigation don’t have a track record of winning. The cases are hard to prove because they often hinge on defamation claims, and the First Amendment provides a strong line of defense for short-sellers, attorneys said. “Such […]
SEC Intensifies Crypto Enforcement With Exchange Settlement – WSJ
The first case of its type, the settlement advances SEC Chair Gary Gensler’s effort to rein in what he characterizes as widespread noncompliance with U.S. securities laws by crypto platforms. Since taking office in 2021, Mr. Gensler has argued that crypto exchanges have broken the law by allowing investors to buy and sell assets that […]