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Join the Securities Litigation and Enforcement Group on LinkedInLet crypto burn | Financial Times
In the aftermath of the collapse of FTX, authorities should resist the urge to create a parallel legal and regulatory framework for the crypto industry. It is far better to do nothing, and just let crypto burn. Actively intervening would convey undeserved legitimacy upon a system that does little to support real economic activity. It […]
Crypto and SPACs are a Doomed Match in the Eyes of the SEC – Bloomberg
Banker Bob Diamond was forced to pull the ripcord this week on his attempt to take stablecoin issuer Circle Internet Financial public via a special purpose acquisition company. The ex-Barclays Plc boss’s dealmaking ability probably wasn’t the issue. Nor was the target’s financial performance: Circle earns interest income on the reserves that backstop its stablecoin USDC, and rising interest […]
Small Investors Who Jumped Into Crypto on FTX Say, Now What? – The New York Times
In early November, Adrian Butkus, a 43-year-old father of two, put $600,000 — much of his life savings — into an account at BlockFi, a cryptocurrency trading firm. BlockFi had marketed the account as risk free, yielding 6.5 percent interest, more than Mr. Butkus could get anywhere else. Just days later, as the collapse of […]
How to Start Regulating the Crypto Markets—Immediately – WSJ
We, two markets regulators—one who served under President Obama and the other under President Trump—believe that government action should rest not on one view of the future or another, but on the hard-earned lessons of the past. We also know that a search for a comprehensive plan carries significant “Waiting for Godot” risk. The fact […]
A Market Hype Cycle Winds Down – WSJ
Crypto was of course a master class in hype, paying off celebrities like Matt “Fortune favors the brave” Damon, Tom Brady, LeBron James and the confused Larry David. Kim Kardashian even paid a $1.26 million fine for pumping the unregistered token EthereumMax. FTX put its name on the Miami Heat’s stadium and Major League Baseball […]
FTX Collapse Draws Senate Scrutiny as Lawmakers Push for Crypto Oversight – WSJ
Lawmakers should pass legislation that would impose strict rules on cryptocurrency exchanges, including rules to limit or prohibit the conflicts of interest that contributed to FTX’s collapse, Commodity Futures Trading Commission Chairman Rostin Behnam said Thursday. Speaking to members of the Senate Agriculture Committee, Mr. Behnam said he still supported a bill that would give […]
Crypto Industry a Disaster in Need of Rebranding, UK Lawmaker Says
The crypto industry is “a complete disaster” at the moment, said Godfrey John Bewicke-Copley, a member of the House of Lords, at an All-Party Parliamentary Group (APPG) meeting on Wednesday. In fact, he advised that the industry “ditch” the word “crypto” altogether. “Please, if we are going forward, let’s not call it crypto anymore. Please, […]
As lawmakers debate how to regulate the industry, more are openly trashing it. | Semafor
At a moment when Congress is finally debating whether and how to seriously regulate the cryptocurrency industry, a split appears to have formed in the Democratic Party. Some of its lawmakers are contemplating how to harness blockchain technology into a force for innovation, while scaling back its early excesses. Then there’s a group you might […]
After Months at Arm’s Length, Sen. Brown Opens Door for Crypto Legislation
U.S. Sen. Sherrod Brown (D-Ohio), the chairman of the Senate Banking Committee, has widely been seen as the linchpin of legislation to set up oversight of the cryptocurrency industry. While his crypto suspicions have been clear in hearings, his plans for specific bills remained quiet until now. Brown sent a letter Wednesday to U.S. Treasury […]
These Am Law 50 Law Firms Are Billing Seven-Figure Fees in Crypto Bankruptcies | Law.com
Am Law 50 firms Kirkland & Ellis, White & Case and Quinn Emanuel Urquhart & Sullivan are charging multimillion-dollar legal fees for representing parties in the Chapter 11 bankruptcies of cryptocurrency trading platforms Voyager and Celsius, with some partner hourly rates ranging as high as $2,130. As law firms gather around the recently filed bankruptcy […]