Economist Peter Schiff: US Dollar Near ‘Historic Crash’ — ‘Forget Soft Landing, It’s Crash and Burn’

Economist Peter Schiff has warned that the U.S. dollar is “on the verge of a historic crash.” He stressed that there won’t be a soft landing for the U.S. economy, predicting a “crash & burn” scenario. Schiff highlighted the potential for increased inflation, rising interest rates, and elevated unemployment. “The economy is weaker than the Fed thinks and the result will be larger budget deficits and higher inflation,” he noted.

Peter Schiff’s Latest Economic Warnings

Economist and gold bug Peter Schiff is back with gloomy economic predictions in a series of posts on social media platform X. He wrote on Tuesday:

The U.S. dollar is on the verge of a historic crash. This will be a game changer for the Fed and the economy, as it will send inflation, interest rates, and unemployment soaring. Forget about a soft-landing. It’s crash & burn.

He added: “The U.S. dollar is toast. As inflation heats up, to avoid getting burned the world will turn to gold as the most viable alternative.”

On Wednesday, the economist explained on X: “The U.S. economy is already in recession. Though Q3 GDP grew by 5.2%, government spending contributed 5.5%. So without that spending, GDP would’ve contracted by .3%. Government spending borrowed money doesn’t reflect real economic growth. It will only lead to higher inflation.”

In another post on Wednesday, Schiff detailed: “Bonds are rallying on the Fed’s Beige Book acknowledgment that the economy is slowing. Bond investors should be careful what they wish for.” He continued:

The economy is weaker than the Fed thinks and the result will be larger budget deficits and higher inflation.

Schiff has consistently raised concerns about the U.S. economy and the fall of the U.S. dollar. In October, he stated: “The dollar will tank, taking the U.S. economy and the American standard of living down with it.” He cautioned that individuals holding U.S. dollars would face significant losses. Furthermore, the economist has warned of the potential for a severe recession, an inflationary depression, an “unprecedented” financial crisis, and a tragic ending. In September, he said a “massive crisis” will lead to a rush to exit the U.S. dollar.

What do you think about the statements by economist Peter Schiff? Let us know in the comments section below.

from Bitcoin News

Rich Dad Poor Dad Author Robert Kiyosaki Recommends Buying Bitcoin ETFs

Rich Dad Poor Dad author Robert Kiyosaki has recommended buying bitcoin exchange-traded funds (ETFs). Warning that the global economy is slowing to a possible depression and the U.S. Treasury and Federal Reserve will print trillions in “fake dollars,” he urged investors: “Don’t be caught sleeping like most Americans. Take action now.”

Robert Kiyosaki and Spot Bitcoin ETFs

The author of Rich Dad Poor Dad, Robert Kiyosaki, has suggested investing in bitcoin exchange-traded funds (ETFs) for investors who prefer this approach over direct investment in bitcoin. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries.

On Tuesday, Kiyosaki posted on social media platform X, expressing concern about the Cardboard Box Index, an indicator used by some investors to assess consumer goods production, which he claims is crashing. Kiyosaki stated that shoppers have ceased shopping, indicating a potential global economic downturn that could result in a depression. He anticipates that the Treasury and Federal Reserve will respond by printing trillions in fake dollars.

In response to these concerns, the renowned author recommended his usual choices of gold, silver, and bitcoin. He highlighted the rising price of gold and the relatively low cost of silver. Additionally, Kiyosaki suggested considering a bitcoin ETF as an alternative. In conclusion, he urged investors to take immediate action and avoid being caught off guard, emphasizing the need for proactive measures.

This isn’t the first instance of Kiyosaki warning about a potential depression. In July, he predicted that a depression is coming. In February, he cautioned about an impending giant crash, stating that a depression is possible. He projected that by 2025, gold would be valued at $5,000, silver at $500, and bitcoin at $500,000. Kiyosaki attributed these predictions to the anticipated loss of faith in the U.S. dollar, which he refers to as “fake money.” In his perspective, gold and silver are regarded as “God’s money,” while bitcoin is seen as “people’s money.”

Kiyosaki did not specify the type of bitcoin ETFs he recommends. In the U.S., there are futures bitcoin ETFs but the U.S. Securities and Exchange Commission (SEC) has yet to approve a spot bitcoin ETF. SEC Chairman Gary Gensler recently revealed that the securities regulator is considering between eight and 10 spot bitcoin ETF applications. Recently, a former NYSE president said he expects money to flood into the crypto industry with spot bitcoin ETF launches. Microstrategy chairman Michael Saylor expects demand for bitcoin to double after the halving and the approval of spot bitcoin ETFs.

What do you think about the advice by Rich Dad Poor Dad author Robert Kiyosaki? Let us know in the comments section below.

from Bitcoin News

Standard Chartered Anticipates Bitcoin Reaching $100,000 Sooner Than Expected

Standard Chartered Bank has doubled down on its bitcoin price forecast of $100,000 next year with increased optimism on the timing. “We now expect more price upside to materialize before the halving than we previously did, specifically via the earlier-than-expected introduction of U.S. spot [bitcoin] ETFs,” the bank’s analyst described.

Standard Chartered’s Bitcoin Price Prediction

Standard Chartered Bank has reiterated its bitcoin price forecast of $100,000 with more price upside happening sooner than it previously predicted. In a note published Tuesday, Standard Chartered’s head of crypto research and Western emerging markets FX, Geoff Kendrick, wrote that “crypto spring has sprung.”

The analyst explained that bitcoin’s unwavering dominance in the cryptocurrency space and heightened token hoarding by miners continue to drive the asset’s upward trajectory. Bitcoin’s share of the crypto market cap rose from 45% in April to approximately 50% while its value surged by over $10,000. The price upswing has sparked renewed interest in the cryptocurrency space. Kendrick shared:

Going forward, then, we expect digital assets’ rising overall market cap to be a bigger driver of BTC price upside than a continued rise in BTC dominance within the space.

As bitcoin’s price escalates, miners are increasingly holding onto their BTC, leading to a sharp decline in mined bitcoin sales to around 80% in the fourth quarter. The upcoming Bitcoin halving in April will further reduce the supply of new bitcoin. Kendrick noted that historically, bitcoin prices peaked 12-18 months after a halving.

The bank initially forecasted a bitcoin price of $100,000 back in April, declaring that crypto winter is over and anticipating that the price could reach $100,000 by the end of 2024. In July, the bank adjusted its prediction, stating that BTC could reach $120,000 next year while emphasizing that crypto winter has ended.

The Standard Chartered analyst further explained that an unexpected positive development is unfolding on the demand side, with an increasing probability of spot bitcoin exchange-traded fund (ETF) approval by the U.S. Securities and Exchange Commission (SEC). Kendrick detailed:

We now expect more price upside to materialize before the halving than we previously did, specifically via the earlier-than-expected introduction of U.S. spot ETFs. This suggests a risk that the USD 100,000 level could be reached before end-2024.

Many analysts expect the SEC to approve multiple spot bitcoin ETFs next year, including one from Blackrock, the world’s largest asset manager. SEC Chairman Gary Gensler recently stated that the securities regulator is considering between eight and 10 spot bitcoin ETF applications.

What do you think about Standard Chartered Bank’s bitcoin price forecast? Let us know in the comments section below.

from Bitcoin News

BNB’s Tech Roadmap for Opbnb Targets 10,000 Transactions per Second

In a six-month roadmap unveiled on Nov. 29, the BNB Chain development team said it is targeting 10,000 transactions per second and fees of $0.001 on the layer two (L2) solution Opbnb. Sometime between 2024’s second and third quarters, the objective will be to lower the gas limit per block increase from 100M to 200M.

Making the Chain More Accessible

On Nov. 29 the BNB chain unveiled what it called a tech roadmap for Opbnb, a layer two (L2) solution within its ecosystem. The goal of the roadmap is to make “blockchain more accessible, with the design principles based on making the Opbnb network more efficient for users and developers.” To achieve this, the roadmap is targeting 10,000 TPS (transactions per second) for transfers as well as “a price reduction of ten times on Opbnb.”

The unveiling of the six-month roadmap came just days after the transaction count on Opbnb tapped a new all-time high of 5.47 million. This milestone was achieved when “the network handled the full capacity of 100M gas per second smoothly in a single block.” This is said to have resulted in the network processing 645 minting transactions per second.

Meanwhile, in a statement, the BNB Chain core development team praised the Opbnb community for being instrumental in the L2’s success so far. The team also noted that the community’s efforts can prove to be potentially vital in the development of decentralized applications.

“We recognize the immense potential of our community members to contribute not only to the development of dapps on Opbnb but also to core chain technology innovations. In addition, developers who contribute to Opbnb, will have access to the Most Valuable Builder Program (MVB) in collaboration with Binance Labs and CMC Labs and be eligible to apply for grants and mentorship,” the team said.

As explained in the statement, Opbnb is also aiming to reduce transacting fees from $0.005 to $0.001 in the last quarter of 2023. In the first quarter of 2024, the objective is to increase capacity from 100M to 150M. Between Q2 and Q3 of 2024, the goal is to lower the gas limit per block increase from 100M to 200M and achieve a transaction per second milestone of 10,000.

What are your thoughts on this story? Let us know what you think in the comments section below.

from Bitcoin News

Binance CEO Richard Teng Outlines the Path Ahead; Puts Innovation, Users and Web3 at the Forefront

Richard Teng, the new CEO of Binance, has explained his vision for the company, outlining the challenges the exchange faces ahead and the areas on which the company will focus. In a blog post, Teng explained that innovation, users, and Web3 will be at the forefront of Binance in the new era of the company.

Richard Teng Outlines Binance’s Future

Richard Teng, the new CEO of Binance, has published a blog post describing the challenges that the exchange will face, and the company priorities moving forward, after the $4.3 billion settlement with the U.S. Department of Justice (DOJ).

Teng, who has now to fill the void left by Changpeng Zhao (CZ), considered one of the most influential men in crypto, explained that he intends to turn the page on Binance’s historical challenges, praising the efforts that the company has made to “recruit, hire, and retain the right personnel to strengthen Binance’s compliance program and culture.”

The new CEO acknowledged the need for cryptocurrency businesses and policymakers to interact to create a global regulatory framework for crypto. He stated:

As an industry, we require more focus than ever on collaborating with policymakers. Only then may we effectively contribute to the development of a globally harmonized regulatory framework that will foster innovation while providing critical consumer protections.

Innovation, Users, and Web3 Expansion

Teng mentioned three significant elements that will remain part of Binance’s strategy. The first one is innovation, with Teng explaining that the company was able to bring value to its users since its beginnings through innovating. In this sense, Teng assured that Binance will “remain committed to product excellence as we continue to blaze the trail of financial innovation.”

He referred to the exchange users as a vital part of the company, reinforcing that the exchange has a solvent economic position, maintaining a 1:1 backing of all the assets under custody. Teng stressed:

You have my word that I will do everything in my power to ensure that you remain the center of all that we do. You should feel confident in the financial strength, security, and safety of the company.

Also, Teng hopes to empower and foster innovation through the promotion of decentralized applications and the adoption of Web3; nonetheless, he acknowledges that this “will be impossible without promoting regulatory innovation in a collaborative way,” having helmed the Abu Dhabi Global Market and collaborated with the creation of the UAE’s Web3 regulatory framework.

What do you think about Richard Teng’s first blog post as Binance CEO? Tell us in the comments section below.

from Bitcoin News

Bitcoin Whale Soars to 72nd Rank in 2 Weeks, Gathering Over 10,000 BTC Amid ETF Buzz

This week, observers in the crypto sphere have kept a close eye on a notable bitcoin whale address, which impressively climbed from the 492nd spot to become the 72nd largest bitcoin holder in a mere fortnight. This substantial addition of over 10,000 bitcoin occurs amidst widespread speculation about how exchange-traded funds (ETFs), such as Blackrock, will procure bitcoin, with some conjecturing that their acquisition might be through direct purchases from miners.

Mystery Whale Wallet Rockets to Top Bitcoin Ranks

Blockchain data reveals that the bitcoin wallet labeled “bc1qc” has rapidly amassed a significant number of bitcoins in a brief time span. This address has become a hot topic on social media platforms, with numerous discussions and posts scattered across X, highlighting the emergence of this new whale.

Initially spotted on October 31, 2023, the wallet made its first move by acquiring 109.81 BTC, and then, after just ten days, it expanded its cache by adding 736.69 BTC. By the middle of November, this wallet had ascended to become one of the top 500, securing the 492nd rank.

Advancing to the present day, this bitcoin whale wallet now ranks as the 72nd largest globally. On November 28, 2023, it added to its growing collection with two separate deposits of 163.67 BTC and 376.28 BTC. Currently, the wallet’s total holdings stand at approximately 10,393.22 BTC, valued at about $397 million based on the prevailing exchange rates.

Notably, this address remains unmarked and unidentified on blockchain explorers like Arkham Intelligence and OXT, keeping the entity behind it shrouded in mystery, although it continues to be under close observation. The emergence of this new whale coincides with a period rife with conjecture and hypotheses, particularly around the possibility of miners selling their bitcoin to financial institutions that are rolling out spot bitcoin ETFs.

These institutions are poised to require substantial quantities of bitcoin (BTC) to spark sufficient interest in their funds. It’s speculated that ETF managers might already be procuring BTC from miners through over-the-counter (OTC) transactions, aiming to prevent the spot market from being impacted by such sizeable BTC acquisitions. As a result of this speculated trend, whale wallets like “bc1qc” could seemingly materialize unexpectedly.

What do you think about the bitcoin whale address acquiring more than 10,000 bitcoin over the past two weeks? Let us know in the comments section below.

from Bitcoin News

European Banking Authority Launches New Consultation on Crypto Travel Rule

The European Banking Authority (EBA) has recently launched a new consultation process concerning implementing the so-called travel rule for cryptocurrency transactions. The institution is seeking feedback on the defined procedures that crypto assets service providers (CASPs) must complete to collect the needed information to comply with the travel rule, and the actions they must take when getting this information is not possible.

European Banking Authority Holds Consultation on Guidelines for Travel Rule Adoption

The European Banking Authority (EBA) has opened a new consultation that seeks to receive feedback on the procedures proposed to apply the travel rule to transfers that use wallets hosted by crypto asset service providers.

The rules are focused on “preventing the abuse of funds and certain crypto-assets transfers for money laundering and terrorist financing purposes” and complement another consultation process made by the institution in June that dealt with due diligence procedures for anti-money laundering processes.

In its most recent Opinion about money laundering and terrorism financing risks, the EBA found that most competent European authorities believe risks related to crypto assets service providers (CASPs) are significant or very significant.

These risks are derived from many factors, including “the pseudo-anonymity of transactions, the interaction with the dark web, the use of crypto-assets in predicate offenses such as cybercrime, complex fraud schemes, crypto-investment scams, increasing money laundering, and circumvention of sanctions.”

Guideline Details

The presented guidelines leave out the application of the travel rule for transactions between unhosted wallets, given that these exclude the intermediation of a CASP. However, incoming transactions from an unhosted wallet to a wallet hosted by a CASP will have to comply with the travel rule if the amount involved is over 1,000 euros ($1,096).

The guidelines describe a set of procedures that CASPs must apply to determine if the user starting the transaction is in control of both addresses involved. These involve advanced analytical tools, taking photos or videos of the user, sending a predefined amount to the CASP’s account, signing a specific message in the account and wallet software, and requesting the customer digitally sign a message into the account and wallet software, among other actions.

CASPs should use at least two procedures to obtain the required data. Nonetheless, if CASPs cannot collect the information after these processes, they should leverage more processes to complete the required information.

The consultation will run until February 26, 2024.

What do you think about the EBA’s consultation on the travel rule procedures? Tell us in the comment section below.

from Bitcoin News

SEC Struggles to Serve Richard Heart in Multi-Billion Dollar Crypto Case

In an interesting turn of events, the U.S. Securities and Exchange Commission (SEC) faces challenges in its billion-dollar lawsuit against cryptocurrency figure Richard Heart. A recent court filing reveals that the SEC has yet to successfully serve Heart, complicating the high-profile case.

Legal Impasse Delays Billion-Dollar Case Against HEX Creator Richard Heart

The SEC’s legal battle with Richard Heart, a well known name in the crypto sphere, took an unexpected twist. According to a court filing, the SEC has encountered difficulties in serving legal documents to Heart. This development raises questions about the progress and future of the lawsuit, which alleges Heart and his entities Hex, Pulsechain, and Pulsex of securities law violations.

The lawsuit, filed on July 31, 2023, places Heart at the center of a significant legal dispute over the operation of his crypto entities. The SEC’s complaint accuses him and his companies of engaging in activities that contravene U.S. securities laws, and raising more than $1 billion through unregistered securities offerings. Millions, contends the SEC, were utilized to fund Heart’s extravagant personal acquisitions.

Heart, whose real name is Richard Schueler, resides in Helsinki, Finland, complicating the SEC’s efforts to serve him. Efforts to serve Heart began on August 22, 2023, when the SEC requested the Finnish Ministry of Justice’s assistance under the Hague Service Convention. However, as of the latest filing, the SEC has not received confirmation of successful service in Finland. The U.S. regulator told the court that the delay is significant, as it impedes the legal process, potentially prolonging the resolution of the case.

The SEC is expected to provide an update to the court by December 15, 2023, regarding their efforts to serve Heart. If unsuccessful, the regulator plans to seek alternative methods of service in line with federal procedural rules. This next step could be crucial in determining how the case moves forward and underscores the legal hurdles in prosecuting international cases involving digital assets.

What do you think about the SEC’s issue serving Richard Heart? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

With Just 0.0004% of Bitcoin’s Hashpower, Solo Miner’s 2 PH/S Effort Secures Block Reward

On November 26, 2023, a stroke of remarkable luck befell a solo miner when they discovered block 818,588, verifying a total of 4,193 transactions. This achievement garnered the miner a total of 6.887 BTC, inclusive of the 6.25 BTC subsidy and transaction fees.

Solo Miner’s Slim Odds Pay Off: Claims Bitcoin Block Reward With Mere 2 PH/s Hashrate

Echoing a similar event from the end of October, this miner, also affiliated with Solo Ckpool, successfully mined the block. Ckpool is designed to support independent miners, allowing them to retain the entire block reward, unlike other pools where rewards are shared.

Con Kolivas, the developer overseeing Solo Ckpool, remarked that this was the 279th block successfully mined by the pool. He noted the rarity of such an event, stating, “A miner of this size would solve a block on average only once every 5 years,” underscoring the miner’s extraordinary luck in this instance.

For context, the Bitcoin network’s total hashpower stands at approximately 488 exahash per second (EH/s), or 488 quintillion hashes per second. In comparison, the solo miner’s contribution of 2 PH/s, or 2 quadrillion hashes, represents a mere 0.0004% of the network’s collective hashpower, highlighting the improbability of their success.

What do you think about the solo miner discovering a block with such a small amount of hashrate? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

Former NYSE President: Money Will Flood Into Crypto Industry With Spot Bitcoin ETFs

Former NYSE President Tom Farley expects money to “flood” into the crypto industry when the U.S. Securities and Exchange Commission (SEC) approves spot bitcoin exchange-traded funds (ETFs). “It’s just easier to buy. People believe in bitcoin,” he emphasized, adding that the cryptocurrency “is a great invention.”

‘Money Will Flood Into the Industry’

Former New York Stock Exchange (NYSE) President Tom Farley discussed the implications of the U.S. Securities and Exchange Commission (SEC) approving spot bitcoin exchange-traded funds (ETFs) and the next crypto bull run in an interview with CNBC last week. He held the position of NYSE Group President from 2014 to 2018 and currently serves as the CEO of the cryptocurrency exchange Bullish.

Farley explained that he is optimistic about bitcoin because all U.S. regulators, including the SEC, have stated that BTC is not a security. Even SEC Chair Gary Gensler has said multiple times that in his view all crypto tokens, except bitcoin, are securities.

“So possibly the bitcoin ETF does go ahead quickly, which could be great for the indsutry,” the ex-NYSE chief emphasized, predicting:

Money will flood into the industry with a bitcoin ETF. It’s just easier to buy. People believe in bitcoin. Bitcoin is a great invention.

Commenting on the state of the crypto market, Farley believes that the bull market is already here, stating: “In my view, the bull run has already started.” He further explained that in this wave of the bull market:

The winning exchanges are going to be trusted, compliant, and support and bolster the digital asset industry.

His crypto exchange, Bullish, was launched in 2021. It is backed by a number of prominent investors, including Peter Thiel, Alan Howard, Louis Bacon, Richard Li, Mike Novogratz, Christian Angermayer, and investment bank Nomura. The exchange recently acquired crypto media outlet Coindesk in an all-cash deal.

Do you agree with former NYSE President Tom Farley that money will flood into the crypto industry with a spot bitcoin ETF? Let us know in the comments section below.

from Bitcoin News

Report: Bankman-Fried Trades Mackerel for a Haircut, Shares Dorm With Ex-Honduran President

Sources close to the situation have revealed that FTX’s founder, Sam Bankman-Fried, is adapting to his new life at the Metropolitan Detention Center in Brooklyn, New York. Insiders indicate that Bankman-Fried is becoming familiar with the prison’s unique economy, having reportedly exchanged mackerel packets for a haircut.

From Trading Crypto to ‘Mack Packs’ — Bankman-Fried’s New Currency in Prison Life

Recently, inside sources have reported on former FTX chief Sam Bankman-Fried‘s adjustment to prison life. Following the revocation of his bail due to allegations of witness tampering, Bankman-Fried was confined to the Metropolitan Detention Center (MDC) in Brooklyn, New York. Since his conviction in November 2023, he has been residing there, currently awaiting sentencing after being convicted on seven distinct federal charges.

According to a Wall Street Journal (WSJ) report by James Fanelli and Corinne Ramey, sources “familiar with the matter” reveal that Bankman-Fried has discovered the unique currency of mackerel packets in prison. These sources allege that Bankman-Fried, the former crypto executive, has adapted by using “mack packs” as payment for services like a haircut while incarcerated at MDC.

Mackerel packets have been a standard form of currency among prisoners since 2004, following the ban on cigarettes in federal prisons, thus elevating mack packs to the preferred trading medium. It is well documented that these mackerel packets, valued at roughly $1 in the prison commissary, can fetch a higher price due to their scarcity.

Prisoners are generally limited to buying 14 packets per week. Inmates typically keep their mack packs in personal storage areas such as lockers or designated spaces in their living quarters. Besides being prison-money, canned mackerel has become a hot commodity globally in recent times, and it is estimated to be a $1.5 billion business by 2031.

Canned mackerel in oil is highly regarded for its flavor, quality, and longevity in terms of shelf life. When unopened and stored correctly, this type of canned mackerel can retain its peak quality for three to five years. Conversely, even an opened can of mackerel, if stored under proper conditions, can preserve its optimal quality for about 3 months.

In an intriguing twist, the WSJ further reports that Bankman-Fried has been offering crypto trading advice to correctional officers at MDC. Additionally, he is reportedly sharing a dormitory with former Honduran president Juan Orlando Hernández, who is accused of accepting bribes from cocaine traffickers. This surprising pairing puts Bankman-Fried in close quarters with a prominent figure in international politics and alleged criminal activity.

What do you think about Bankman-Fried dealing in mack packs these days? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

Tron’s Justin Sun Announces ‘Epic Airdrop’ in Wake of HTX, Heco, and Poloniex Hacks

In the aftermath of September’s HTX breach, along with the subsequent attacks on Poloniex and Heco Bridge in November, HTX faced yet another security breach on November 23, resulting in a loss of $30 million. HTX announced its commitment to “fully compensate” for the financial damages caused by the hack. Additionally, on Friday, Tron’s founder, Justin Sun, declared on the social media platform X that not only would the losses be recouped, but the team also intends to launch an “epic airdrop.”

Justin Sun’s Response to Several Hacks — An ‘Epic Airdrop’ in the Pipeline

Since late September, three cryptocurrency platforms associated with Tron’s Justin Sun — HTX, Poloniex, and Heco Bridge — have experienced security breaches, cumulatively losing millions. On September 25, 2023, Sun revealed that HTX suffered a breach, resulting in the loss of 5,000 ether, valued at approximately $8 million at the time.

Following this, on November 10, 2023, Poloniex faced a security lapse, leading to a loss of around $114 million. Barely 12 days passed before another attack hit HTX’s Heco Chain, with hackers siphoning off $86.6 million from the cross-chain bridge platform.

Subsequently, HTX reported a $30 million loss due to a hacking incident the next day, assuring its users of full reimbursement. HTX emphasized that this loss was “extremely small compared to the total funds of the platform.” On Friday, Sun turned to social media, informing his 3.4 million followers on X that both exchanges were set to resume deposits and withdrawals after a temporary suspension.

Additionally, the co-founder of Tron outlined that a new token would emerge from this incident. Sun said:

As HTX and Poloniex approach opening [deposits and withdrawals], we will initiate an epic airdrop for users with assets. Please stay tuned! My deepest apologies to the users affected by the hacker attacks on HTX and Poloniex. We will cover the loss and All assets [are] SAFE.

Poloniex has announced that it anticipates the resumption of withdrawals and deposits on November 30, 2023. The exchange advised its users to utilize new deposit addresses, rather than relying on previously used ones. On Friday at noon Eastern Time (ET), HTX reinstated Tron deposits and withdrawals, following the temporary halt.

What do you think about Justin Sun’s response to the HTX and Poloniex hacks? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

Bitcoin Transaction Fees Dip Amid November’s Surging Miner Revenues

Transaction fees for Bitcoin have eased, following their surge to more than $18 per transaction on two separate occasions last week. As of November 24, 2023, the average fee per transaction stood at roughly $5.89, with the median fee per transfer being $2.86.

Bitcoin Fees Cool Down — November’s Mining Revenue Has Already Outstripped October’s

After reaching a peak of over $18 per transfer on November 16 and 18, 2023, the expense for block space has seen a decline. Data from November 24 shows the average cost per transaction hovered at about $5.89.

This represents a significant decrease from the previous day’s average of $14.06 per transfer, underscoring the fluctuating nature of block space costs over the past week.

Data from Dune Analytics reveals that Ordinal inscriptions continue to flourish, with over 300,000 mints daily following a peak of more than 475,000 inscriptions on November 19. On November 24, a total of 347,791 inscriptions were minted, and as of November 25, bitcoin miners have already processed upwards of 289,000 inscriptions.

This surge in inscriptions, combined with the volume of financial transactions, has resulted in the mempool being filled with over 200,000 transfers.

As of 4:00 p.m. Eastern Time (ET) on November 25, there are 206,697 unconfirmed transactions, which translates to a backlog of approximately 269 blocks worth of space, as per mempool.space.

Fee metrics from mempool.space on the same day, measured in satoshis per virtual byte (sat/vB), indicates that a “no priority” transaction currently costs an estimated $1.17 or 22 sat/vB.

In contrast, a “high priority” transaction is priced at 45 sat/vB, amounting to $2.38 per transaction. Additionally, data suggests that November’s BTC mining revenue is already outstripping last month’s figures, even before the month concludes.

In October, miners earned $885 million in rewards and fees. As of November 25, 2023, miners have earned $945 million in total, including transaction fees and the subsidy.

At 4:00 p.m. (ET) on Saturday, miners have accumulated $124.98 million from fees alone, excluding the subsidy. This figure is nearing the 2023 record of $125.92 million in fee revenue, set in May.

Given the current trajectory and if transaction fees remain high and volatile, it appears likely that miners could surpass this record within the next five days.

What do you think about the network transaction fees’ dynamics? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

SEC Scores ‘Huge Victory’ in Binance-DOJ Settlements, Former SEC Official Says

The U.S. Securities and Exchange Commission’s former head of internet enforcement has detailed why the SEC is a huge winner in the Binance settlements with the U.S. Department of Justice (DOJ), the Treasury, and other federal authorities. He stressed that what Binance has agreed to could “strengthen” the SEC’s lawsuit against the crypto exchange and its former chief executive.

‘SEC Netted a Huge Victory Against Binance’

Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark explained in a lengthy post on social media platform X Wednesday why the settlements between Binance and U.S. authorities, including the Department of Justice (DOJ), are “a huge SEC victory.” He believes that the Binance settlements contain numerous elements that the securities regulator could leverage to bolster its case in the lawsuit against the crypto exchange and its former CEO, Changpeng Zhao (CZ).

The DOJ, the Treasury Department, the Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission (CFTC) held a press conference on Wednesday to announce the Binance settlements, pleas, and consent orders.

Stark, who founded and served as chief of the SEC Office of Internet Enforcement for 11 years, pointed out that the securities watchdog, particularly Chair Gary Gensler, was “conspicuously absent” from the press conference. Noting that “The SEC appears to be the sole U.S. federal government holdout for a Binance-related settlement,” Stark opined:

The SEC netted a huge victory against Binance … without even filing a court document, without even negotiating a settlement agreement, and without even attending the DOJ/CFTC/FinCEN/Treasury press conference.

The former internet enforcement chief proceeded to outline multiple ways the securities watchdog could benefit from the Binance settlements. “The SEC now has at its disposal a treasure trove of fresh and comprehensive Binance-related inculpatory evidence gleaned from the various pleadings, orders, attachments, and other Binance-related charging documents,” he began, adding that they will “provide formidable cannon fodder for SEC investigators and litigators to strengthen their Binance-related accusations and contentions.”

Binance also agreed on multiple monitorships that will “undoubtedly create extraordinary and unique opportunities for the SEC’s investigative and litigation teams to identify and utilize a perpetual stream of newly discovered inculpatory evidence,” Stark described.

Moreover, Stark noted that Binance agreed on “an astonishing level of cooperation” by the exchange, ex-CEO Changpeng Zhao (CZ), and “every single Binance employee.” He added: “The SEC could use the cooperation requirements as leverage during any investigative or discovery disputes … For instance, Binance and Zhao will not want the SEC to complain to FinCEN, DOJ, Treasury, etc. about a lack of Binance-related cooperation, which could, in turn, result in additional fines, penalties [and] even prison time.”

Binance also agreed to file Suspicious Activity Reports (SARs), Stark continued, adding that “any newly filed Binance-related SARS will likely create a novel and continual flow of salient and compelling leads and inculpatory evidence relating to Binance.” In addition, he stressed that “Going forward, when the SEC makes reference to criminal conduct at Binance during the course of their Binance-related litigation, those characterizations will not be hyperbole, rumor or conjecture. Classifications of Binance-related conduct as criminal behavior will be fact.”

In conclusion, Stark noted that in addition to “the devastating facts alleged in the DOJ indictment against Binance” and “the 92 pages of vast and relentless AML violations” alleged by FinCEN, “the SEC could opt to add claims or facts relating to Binance’s failure to escalate red flags of potentially suspicious activity, as well as failing to adopt an AML program reasonably designed for its business.” The ex-head of internet enforcement concluded:

These new AML-related facts/allegations could not only strengthen the SEC’s case but could also trigger greater fines, penalties and disgorgement.

Do you agree with former SEC internet enforcement chief John Reed Stark that the SEC is a huge winner in the Binance settlements with the DOJ, Treasury, and other federal agencies? Let us know in the comments section below.

from Bitcoin News

Ethereum L2 Platform Blast Draws $400M in a Week Despite Invite-Only Access and Criticism

This week, the crypto community is abuzz with discussions about Blast, a new Ethereum layer two (L2) platform. The project gained prominence after securing a notable $20 million in funding, spearheaded by Paradigm and Standard Crypto, among other investors. Developed by Pacman, the entrepreneur behind the non-fungible token (NFT) marketplace Blur, Blast has garnered over $400 million in digital assets in the past week. At the same time, the platform has been scrutinized a great deal over its mechanics.

Blast, Ethereum’s L2 Newcomer, Secures $400M

On November 20, 2023, Tieshun Roquerre, also known as Pacman, unveiled Blast following the project’s funding from Standard Crypto, Paradigm, and additional investors. As an Ethereum L2 network, Blast stands out by offering native yields for ethereum (ETH), staked ethereum (STETH), and stablecoins such as DAI, USDT, and USDC, setting it apart from other L2 solutions.

In under a week, Blast has amassed $405 million in value locked, despite being an invite-only platform at present. Although some social media users are distributing Blast invite codes, they have noted that users cannot bridge out or withdraw funds until February 2024.

The platform’s referral system and padded emissions mechanics have led to some labeling it as a “pyramid scheme” and a “Ponzi.” Co-founder and managing partner at Omnichain Capital, David Attermann, said, “awful look for the ‘investors’ in this deal [and] ‘influencers’ shamelessly shilling this MLM scheme on CT.”

Blast reveals that its team, in addition to Pacman, includes alumni from institutions such as MIT, Yale, and Nanyang Technological University, as well as experts from FAANG and Seoul National University. The referral system of Blast features a leaderboard that ranks members based on the points they earn for bridging assets and inviting friends.

The platform is also preparing for an airdrop, with its distribution set to be evenly split between early access members (50%) and developers (50%), as stated on their website. The early access phase is currently active, and developers are slated to receive their share of the airdrop in January, coinciding with the launch of the Blast Testnet.

Early access participants will have to wait until May for their airdrop. Despite skepticism surrounding Blast, paralleling the early days of Blur, the project is experiencing considerable traction. This decentralized finance protocol is under close observation on analytics platforms and explorers, including Arkham Intelligence, Dune Analytics, and Defillama.

There’s also discussions and public disapproval about the project’s multi-signature mechanism tied to the vault. Blast, however, emphasized the nuanced and spectrum-based nature of security in an X post published on Friday. The startup insists upgradeable contracts, despite their perceived vulnerabilities, particularly in token-gated, time-locked mechanisms, can offer more security in certain scenarios.

What’s your opinion about Blast’s quick rise and the criticism it has received? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

ECB Chief Christine Lagarde Reveals Her Son Invests in Crypto Despite Her Warnings — ‘He Ignored Me Royally’

The president of the European Central Bank (ECB), Christine Lagarde, has reportedly revealed that her son invested in crypto despite her warnings. “He ignored me royally,” Lagarde shared, noting that after he lost 60% of the money he invested, she had another talk with him about crypto investing.

Lagarde’s Son Ignored Her Advice About Crypto Investing

European Central Bank (ECB) President Christine Lagarde disclosed during a town hall with students in Frankfurt on Friday that her son invested in cryptocurrency despite her repeated warnings and lost approximately 60% of his investment, Reuters reported. She was quoted as saying:

He ignored me royally, which is his privilege … And he lost almost all the money that he had invested.

“It wasn’t a lot but he lost it all, he lost about 60% of it … So when I then had another talk with him about it, he reluctantly accepted that I was right,” she claimed. The ECB chief has two sons in their mid-30s but did not disclose which one she was referring to. She also did not reveal any specific cryptocurrencies he invested in or the amount of his investment.

Lagarde further stated: “I have, as you can tell, a very low opinion of cryptos … People are free to invest their money where they want, people are free to speculate as much as they want, (but) people should not be free to participate in criminally sanctioned trade and businesses.”

The ECB president has long been skeptical of crypto. In June last year, she warned that crypto assets and decentralized finance (defi) “have the potential to pose real risks to financial stability.” In March last year, she said crypto is “based on nothing.” She also stressed that cryptocurrencies are “certainly” being used to evade sanctions.

The European Central Bank has called for global regulation of crypto assets to protect uninformed investors and close loopholes that could facilitate funding for terrorists or enable money laundering by criminals.

Last month, the ECB decided to move its central bank digital currency (CBDC) project to the next phase after two years of investigation. The “preparation phase” of the digital euro will involve “finalizing the digital euro rulebook and selecting providers that could develop a digital euro platform and infrastructure,” the European Central Bank explained.

What do you think about ECB President Christine Lagarde’s son “royally” ignoring her advice and investing in crypto? Let us know in the comments section below.

from Bitcoin News

Court Upholds Detention of Ex-FTX CEO Sam Bankman-Fried, Deeming Release Arguments ‘Unpersuasive’

As Sam Bankman-Fried’s legal representatives gear up to appeal the ex-FTX chief’s recent verdict, they have requested the court for his provisional release from the Metropolitan Detention Center in Brooklyn, New York. Upon examination of Bankman-Fried’s claims, a clerk from the court of appeals deemed them “unpersuasive.”

Bankman-Fried’s Attempt at Release Has Been Denied by the Court of Appeals

Sam Bankman-Fried is eager to leave incarceration at Brooklyn’s Metropolitan Detention Center, where he has been since August. In a recent effort, his attorneys sought to secure his release while preparing for his appeal, filing a motion with the Court of Appeals. However, the court’s clerk, Catherine O’Hagan Wolfe, firmly rejected this plea, maintaining the necessity for continued imprisonment.

The decision by the United States Court of Appeals, Second Circuit, is rooted in the initial grounds for revoking his bail. The court identified credible evidence suggesting Bankman-Fried attempted to influence two witnesses, which played a pivotal role in the decision against his release.

Furthermore, the court dismissed the argument that alternatives to detention weren’t adequately evaluated. The district court had previously intensified release stipulations in response to Bankman-Fried’s actions, concluding that no viable option existed apart from detention. The clerk noted:

The record shows that the district court thoroughly considered all of the relevant factors, including the defendant-appellant’s course of conduct over time that had required the district court to repeatedly tighten the conditions of release.

Moreover, the court characterized Bankman-Fried’s arguments as “unpersuasive” and “denied as moot.” His sentencing is scheduled for March 28, 2024, and he potentially faces a sentence exceeding a century for his crimes. These recent legal maneuvers by his team indicate a determination to challenge the case in the Court of Appeals.

What do you think about the court denying Bankman-Fried’s latest attempt for release? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

US Prosecutors Urge Court to Keep Binance’s Ex-CEO in the Country Amid Flight Risk Concerns

In the wake of the settlement between the U.S. Department of Justice and Binance, the world’s largest crypto exchange, federal authorities are insisting that the exchange’s former CEO, Changpeng Zhao (CZ), remain stateside until his sentencing in February 2024.

Justice Department Seeks to Restrict Ex-Binance CEO’s Travel Before Sentencing

A recent court filing reveals that U.S. prosecutors have petitioned Magistrate Judge Brian Tsuchida to ensure Changpeng Zhao’s (CZ) continued presence in the U.S. This request, lodged on Wednesday, aims to reassess the bond conditions set on November 21, 2023. The U.S. government articulates concerns about CZ being a “substantial risk of flight.”

The filed document explicitly states:

[The Government] requests that the court order that Zhao should not be permitted to return to the UAE before sentencing.

Currently residing in Dubai, United Arab Emirates (UAE), CZ lives with his three children and partner. The prosecutors argue that the prospect of an 18-month jail term might tempt CZ to remain in the UAE with his family. The lack of an extradition treaty between the UAE and the U.S. complicates matters, making it challenging to secure his return in case of non-compliance with court directives.

Despite an initial agreement on a $175 million bail bond, prosecutors are now questioning its sufficiency. Under the proposed arrangement, “three responsible persons” were to secure $15 million in cash for the bail. While CZ faces potential imprisonment, there remains a possibility of avoiding it, akin to Bitmex’s former CEO Arthur Hayes.

Hayes, who breached the Bank Secrecy Act (BSA) by neglecting to establish an anti-money laundering (AML) protocol at Bitmex, faced a potential five-year prison term. However, as a first-time offender, he was granted two years of probation instead of prison time. Hayes concluded his legal troubles by paying a $10 million fine for his offenses.

What do you think about the prosecutor’s concerns about CZ posing a flight risk? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

Glassnode Analysis Reveals Spot Bitcoin ETF Approval Could Unleash $70B Capital Influx

The approval of a spot bitcoin exchange-traded fund (ETF) in the U.S. could inject substantial new capital into the cryptocurrency market. Glassnode’s latest analysis on the subject provides a deep dive into how spot bitcoin ETFs could reshape market demand and supply, signaling a new era for bitcoin’s integration into mainstream financial markets.

Glassnode: Spot Bitcoin ETF Could Be a Catalyst for Major Demand and Increase Volatility

An influx of demand would confront relatively limited liquid bitcoin (BTC) supply, potentially amplifying volatility, Glassnode researchers detail in a report published on November 20. The study by the blockchain data firm Glassnode indicates there’s significant pent-up demand for a spot bitcoin ETF product.

The analysts estimate up to $70.5 billion could flow into the market from stock, bond, and gold investors allocating just a fraction of assets. Even more conservative projections see tens of billions entering in the first years.

Unlike existing bitcoin investment vehicles, a spot ETF would provide institutions with direct and regulated bitcoin exposure. This could attract major inflows even if some capital shifts from current proxy funds. Historical data shows new access unleashing asset demand.

“To understand the market dynamics that will likely unfold post-ETF introduction, we now need to turn our attention to bitcoin’s available supply,” Glassnode’s study explains.

The analysis highlights how prolonged accumulation has tightened BTC’s circulating supply. Over 76% is now held long-term, concentrating coins in holders less responsive to price swings. Glassnode’s research shows short-term and active trader supplies recently hit multi-year lows.

The growth in illiquid supply is evident as investors move assets into holding wallets. In contrast, exchange balances reflect the opposite trend, signaling limited market liquidity even with rebounding trading volumes. Despite heightened interest from institutions, tradable Bitcoin supply continues to be limited, according to insights from Glassnode’s research.

Glassnode’s B2B contributor Marcin Miłosierny says that as a result, even modest spot ETF inflows could significantly move prices. Analyzing bitcoin’s realized market cap helps gauge sensitivity. When small inflows drive large valuation changes, market impact potential is high. The report states:

The impact of the first spot bitcoin ETF goes beyond the symbolic. It also represents a potentially significant influx of new demand. With the prevailing long-term HODLing pattern exacerbating bitcoin’s scarcity, the introduction of an ETF could dramatically shift the market dynamics.

Glassnode summarizes that the approval of a spot bitcoin ETF signifies a pivotal moment for institutional involvement. However, the ensuing changes in supply and demand could significantly heighten market volatility. “By keeping an eye on the shifts between these two cohorts, traders and investors can better navigate the complex landscape of the Bitcoin onchain,” the report concludes.

What do you think about Glassnode’s report concerning a spot bitcoin ETF? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

Congressman Calls for Gensler’s Removal After SEC Sues a Crypto Exchange Twice in 10 Months

A U.S. lawmaker has urged Congress to pass his bill that would fire U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler. This call followed the securities regulator filing a second lawsuit against crypto exchange Kraken this year after the exchange paid $30 million to settle the initial lawsuit.

Lawmaker Seeks to Fire Gary Gensler

Congressman Warren Davidson (R-OH) has called on Congress to pass his bill that would fire Gary Gensler as the chairman of the U.S. Securities and Exchange Commission (SEC) after the securities regulator sued crypto exchange Kraken twice in 10 months. Rep. Davidson wrote on social media platform X on Tuesday:

Now would be a great time to pass my SEC Stabilization Act and fire Gary Gensler.

On Monday, the SEC filed its second lawsuit this year against Kraken for operating a crypto trading platform “as an unregistered securities exchange, broker, dealer, and clearing agency.” The initial charge in February pertained to the crypto exchange’s staking program, resulting in a settlement with the SEC and a $30 million payment by Kraken.

Jesse Powell, Kraken’s co-founder and former CEO, wrote on social media platform X on Monday: “USA’s top decel is back with another assault on America … I thought we settled all their concerns for $30m in Feb. Now they’re back for seconds?” He stressed:

Message is clear: $30M buys you about 10 months before the SEC comes around to extort you again. Lawyers can do a lot with $30M but the SEC knows that a real fight will likely cost $100M+, and valuable time. If you can’t afford it, get your crypto company out of the U.S. warzone.

Commenting on Powell’s statements, lawyer John Deaton opined on X: “Gary Gensler is a despicable and dishonorable regulator. He knew that Kraken believed it was buying peace for the $30M.” He explained that in a court case, “$30M takes you only so far, like maybe only 1/3 of the way — if you’re lucky. Ask Ripple and Brad Garlinghouse who spent $150M plus so far, and is still paying millions in legal fees.”

Rep. Davidson introduced the SEC Stabilization Act in June to remove SEC Chair Gary Gensler in order to safeguard U.S. capital markets “from a tyrannical chairman.” He explained that the bill would “remove the role of chairman,” noting: “It would preserve the current commissioners but it would add a sixth commissioner so there would be no more than three from any one political party.”

Do you think SEC Chair Gary Gensler should be fired? Let us know in the comments section below.

from Bitcoin News

US Lawmaker Urges Congress to Focus on Attracting Crypto Opportunities to Bolster National Security

A U.S. lawmaker has called on Congress to focus its efforts on bringing more crypto activity and opportunities to the United States in order to “bolster U.S. national security.” Citing the Department of Justice’s action against crypto exchange Binance, the lawmaker stressed that Congress does not need to rewrite laws that work in the crypto space.

Rep. Emmer Calls for Focus on Domestic Crypto Growth

House Majority Whip Tom Emmer (R-MN) shared his perspective on Congress’ role in shaping cryptocurrency laws following the Department of Justice’s settlement with Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao (CZ).

“Congress does not need to rewrite laws that work in the crypto space. Yesterday’s successful prosecution shows that when enforced, current laws are suitable to help weed out bad actors,” the lawmaker explained on social media platform X on Wednesday. He emphasized:

Congressional resources should instead be spent working to bring more crypto activity and opportunities onshore to bolster U.S. national security.

Rep. Emmer has been pushing for Congress to pass laws that benefit the crypto sector. Earlier this month, the House of Representatives adopted an amendment he attached to the Financial Services and General Government Appropriations Act of 2024 that limits the authority of the U.S. Securities and Exchange Commission (SEC) to carry out enforcement actions against the crypto industry.

In September, the House Financial Services Committee passed his CBDC Anti-Surveillance State Act, which halts the efforts of the Biden administration “from issuing a financial surveillance tool that will undermine the American way of life.”

Emmer and several other lawmakers have pushed to oust SEC Chairman Gary Gensler. In June, Emmer joined Rep. Warren Davidson in supporting the SEC Stabilization Act that seeks to fire Gensler as the chair of the securities regulator.

What do you think about Rep. Tom Emmer urging Congress to focus its efforts on bringing more crypto activity and opportunities to the U.S. in order to bolster national security? Let us know in the comments section below.

from Bitcoin News

KPMG and Chainalysis Partner to Enhance Crypto Fraud Detection and Compliance

KPMG in Canada and Chainalysis have entered into a strategic partnership aimed at strengthening efforts against crypto asset fraud. This alliance, marking KPMG’s entry into the Chainalysis Solution Provider program, is focused on providing enhanced monitoring and risk management tools for cryptocurrency exchanges, financial institutions, and government agencies. The announcement on Wednesday details that the initiative is a response to the increasing sophistication of crypto-related criminal activities.

Strategic Alliance Formed Between ‘Big Four’ Member KPMG and Chainalysis

KPMG, a multinational professional services network and one of the ‘Big Four’ accounting organizations revealed on Wednesday that it has partnered with the blockchain surveillance firm Chainalysis. KPMG details that the collaboration enables the certification of KPMG professionals as Chainalysis Certified Investigators, aiming to improve their ability to detect and prevent illicit activities in the crypto sector.

“This collaboration will help to further solidify KPMG’s expertise in forensic investigations and crypto assets and blockchain technology,” stated Kunal Bhasin, a partner and crypto and blockchain co-leader at KPMG in Canada.

KPMG details that the collaboration is the first of its kind for the company, focusing on blockchain monitoring, support, governance, and risk management. The partnership is intended to assist organizations in adhering to financial regulations and advancing their anti-money laundering (AML) compliance programs. According to Enzo Carlucci, a national forensic leader at KPMG, the collaboration aims to provide organizations with the necessary tools to understand fraud and financial crime risks.

The professional services firm highlights the latest Chainalysis 2023 Crypto Crime Report which shows cryptocurrency-based illicit transactions reached $20.6 billion last year. Additionally, KPMG cites the Ontario Securities Commission Contact Centre and the Canadian Anti-Fraud Centre reports of significant increases in crypto-related complaints and fraud losses over the past few years.

What do you think about KPMG’s partnership with Chainalysis? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

SEC Identifies 16 Crypto Tokens as Securities in Kraken Lawsuit

The U.S. Securities and Exchange Commission (SEC) has identified 16 crypto tokens as securities in its lawsuit against cryptocurrency exchange Kraken. Some of the alleged crypto securities were the same as those highlighted in the SEC’s lawsuits against Coinbase and Binance. Kraken’s CEO stressed: “We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.”

SEC Labels 16 Crypto Tokens as Securities

In its lawsuit against crypto exchange Kraken filed on Monday, the U.S. Securities and Exchange Commission (SEC) named 16 crypto tokens as securities. The regulator’s complaint states:

Kraken currently makes available for trading crypto assets that have been the subject of prior SEC enforcement actions based upon their status as crypto asset securities, including crypto assets trading under the symbols ADA, AXS, ALGO, ATOM, CHZ, COTI, DASH, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, SAND, and SOL.

The regulator pointed out that some of the aforementioned crypto assets had been named in several previous legal cases, including those involving Coinbase, Binance, and Bittrex. SEC Chairman Gary Gensler has repeatedly said that he views all crypto tokens, except bitcoin, as securities. However, a recent court ruling found that XRP is “not necessarily a security on its face.”

In its lawsuit against Coinbase in June, the SEC stated that crypto assets like ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, and MATIC meet the criteria of being investment contracts. In the same month, the securities regulator identified in a lawsuit against Binance that 12 crypto tokens are securities: BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI. In April, the SEC said DASH, ALGO, TKN, NGC, and OMG are unregistered securities in a lawsuit against Bittrex.

Responding to the SEC’s charges on Monday, Kraken CEO Dave Ripley emphasized on social media platform X: “We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.” Like Kraken, Coinbase has insisted that its platforms do not list crypto securities. In July, Coinbase’s chief legal officer, Paul Grewal, asserted that the SEC’s interpretation of “investment contract” violates the law.

After the SEC’s move against Kraken, U.S. Senator Cynthia Lummis (R-WY) called on Congress to “pass a regulatory framework to provide clear rules to the SEC on what is a security and what is a commodity.” She stressed on X: “The SEC cannot continue ruling by enforcement. Crypto asset companies have repeatedly tried to get guidance from the SEC only to be hit with enforcement actions, causing unnecessary harm to consumers.”

What do you think about the SEC stating that 16 crypto assets are securities in the Kraken lawsuit? Let us know in the comments section below.

from Bitcoin News