Daily Archives: February 10, 2023, 6:37 pm

SEC’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 said. Gensler said that firms…

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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 in more stark terms: “There…

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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 of the oversight and investigations…

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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 come into compliance, do the…

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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 litigations are fact-specific but often…

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