SEC Sues Kraken: The SEC filed a lawsuit against Kraken, accusing it of operating without proper securities registration.
Unregistered Crypto Allegations: The lawsuit targets Kraken for offering trades in multiple cryptocurrencies, including ADA, SOL, and others, without SEC registration.
Ripple’s XRP Omitted: XRP, Ripple’s token, is not part of this lawsuit, though Ripple faces a separate legal battle with the SEC, with a major trial set for next April.
ADA, SOL, and Many More
The US Securities and Exchange Commission is famous for its predominantly hostile stance towards the cryptocurrency industry, using every opportunity to undermine the sector or some of the companies involved in it. Most recently, it filed a lawsuit against the trading venue Kraken, accusing it of operating as an unregistered securities exchange, broker, dealer, and clearing agency.
The regulator also alleged that the platform had offered trading services with certain cryptocurrencies without registering them first with the Commission.
Those assets include Cardano (ADA), Solana (SOL), The Sandbox (SAND), Near Protocol (NEAR), Polygon (MATIC), Avalanche (AXS), Algorand (ALGO), Cosmos (ATOM), Chiliz (CHZ), COTI (COTI), The Sandbox (SAND), Decentraland (MANA), Dash (DASH), Filecoin (FIL), Flow (FLOW), Internet Computer (ICP), and OMG Network (OMG).
Ripple (XRP) is Not Included
One crypto asset that has not found a spot in the lengthy list is Ripple’s native token – XRP. It is worth mentioning, though, that the SEC touched upon the coin when suing the blockchain enterprise in December 2020.
Back then, the agency accused Ripple of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP.
However, the US magistrates determined in July that the company’s programmatic sales from years ago did not include an offer of investment contract and later dismissed the SEC’s wish to appeal the ruling. A grand trial scheduled for April next year should put an end to the legal saga between the entities.
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The U.S. Securities and Exchange Commission (SEC) filed a 90-page lawsuit against cryptocurrency exchange Kraken on Monday, re-centering the firm among a handful of crypto giants in the agency’s legal crosshairs.
The lawsuit accuses Kraken of a slew of securities law violations, and of commingling customer funds with corporate assets in ways that could risk major losses for both parties.
The SEC Strikes Again
Per an accompanying press release from the SEC, Kraken has simultaneously operated as an unregistered securities exchange, broker, dealer, and clearing agency in the United States, intertwining all such traditional services since 2018.
Specifically, the company made nine-figure profits by “unlawfully facilitating the buying and selling of crypto asset securities.”
Such charges mimic those that the SEC levied against Coinbase and Binance in June, naming many of the same “crypto asset securities” mentioned in the prior lawsuits, alongside some new tokens like ALGO, ATOM, COTI, MANA, and OMG.
“Kraken’s choice of unlawful profits over investor protection is one we see far too often in this space, and today we’re both holding Kraken accountable for its misconduct and sending a message to others to come into compliance,” stated SEC enforcement director Gurbir S. Grewal.
In their respective defenses, Binance and Coinbase have denied listing securities on their platform, accusing the SEC of misinterpreting securities laws to be overly broad.
Binance, for instance, has likened cryptocurrencies involved within an investment contract to oranges or trading cards – not to investment contracts themselves which inherently include an expectation of profit.
In a conversation with CryptoPotato, patent lawyer Sandy Seth argued that the SEC’s arguments contain no merit in either its case against Kraken or Coinbase, for largely the same reasons.
“Investment contracts require some form of financial interest in a company, ie common enterprise,” he argued. “This is also why sports or concert tickets or antique cars or art are not securities.”
Commingling Funds
Regarding its handling of customer assets, Kraken used poor internal accounting that put customer funds at risk, including paying operational expenses using accounts that held customer assets.
The agency noted that Kraken’s own internal auditor said the company’s practices created “a significant risk of loss” for customers. For example, the auditor found that as of December 31, 2021, Kraken held $33.6 million worth of customer fiat within its corporate accounts.
The company’s poor internal controls allegedly led to accounting deficiencies around customer assets held in 2020 and 2021 that have only been identified in August of this year.
“These errors were a result of Kraken’s poor recordkeeping practices and failure to properly record margin transactions, underscoring the deficient internal controls at the company,” the SEC wrote.
Back in February, Kraken paid $30 million to settle charges with the SEC related to its staking as a service product, which the SEC considered an unregistered security.
The U.S. Securities and Exchange Commission (SEC) in its latest report revealed that the number of enforcement actions filed in the fiscal year 2023 (FY2023) increased by three percent from the previous record in the financial year of 2022.
Some of the enforcement actions involved heavyweights in the crypto industry, with various accusations against cryptocurrency businesses and executives ranging from fraud to securities violations.
Nearly $1 Billion Distributed to Harmed Investors
The SEC’s enforcement actions in FY 2023 rose to 784 from 760 in the previous fiscal year, with the Commission obtaining $4,949 billion in financial remedies. A bulk of the amount – approximately $3.4 billion – comprised disgorgement and prejudgment interest, while civil penalties were worth $1,580 billion.
According to the SEC, the financial remedies ordered in FY 2023 were the second highest in the agency’s history, after the regulator recorded its highest-ever financial remedies at over $6 billion in the previous fiscal year.
Furthermore, the Commission distributed $930 million to affected investors, making it the second consecutive year that the agency has distributed over $900 million.
Whistleblower awards also saw an uptick within the reporting period, with $600 million awarded in one year, with one receiving about $279 million, the largest reward awarded to a single individual in the history of the SEC’s program.
SEC Went Hard on the Crypto Industry in FY 2023
While the SEC announced charges against and settlement with top financial institutions such as Wells Fargo, Scotia Capital, Goldman Sachs, Citadel Securities, and HSBC, the American regulatory watchdog doubled down on its enforcement actions against the crypto industry.
The SEC filed charges against top crypto entities and individuals, alleging fraud, securities violations, and unregistered operations. Some of the high-profile cases included FTX founder and former CEO Sam Bankman-Fried, along with other top executives of the collapsed cryptocurrency exchange, and Terraform Labs and its founder, Do Kwon.
Also, the SEC accused Richard Heart and his three entities – Hex, PulseChain, PulseX – of fraud and unregistered securities sale. Other crypto businesses that were charged with unregistered securities offerings include Kraken, Celsius, and Nexo. While Kraken settled with the SEC to pay $30 million disgorgement, civil penalty, and prejudgment interest, Nexo paid a civil penalty worth $22.5 million.
In June, the Commission slammed lawsuits against industry heavyweights Binance and its CEO Changpeng Zhao, along with Coinbase, with both entities denying the charges and seeking to dismiss the SEC’s lawsuit.
The report further mentioned cases of alleged unlawful touting of cryptocurrency asset securities by celebrities who did not disclose that they were paid to make such promotions. Celebrities who settled with the regulator include Shaffer Smith, popularly known as Ne-Yo, Lindsay Lohan, Jake Paul, Akon, and Soulja Boy.
However, notably absent from the SEC report is the regulator’s initial loss in its court case against Ripple, where the presiding judge ruled that secondary sales of XRP did not constitute an offer of investment contracts or securities.
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The U.S. Securities and Exchange Commission (SEC) has delayed a decision on Hashdex’s application to launch a spot Bitcoin ETF in the U.S.
The regulator’s website says that the SEC also postponed its decision on Grayscale’s application to launch a futures ETF on Ethereum (ETH).
Through the application, Hashdex wants to transform its futures exchange-traded fund into a spot Bitcoin ETF. There is still no such tool in the US. Investors believe that its launch will attract institutional investors to the market. Therefore, applications for the tool have attracted the attention of the crypto community.
Next up is Franklin Templeton’s application to launch a spot Bitcoin ETF. The deadline for making a decision on it expires on Nov. 17.
Okay, we’re nearing in on deadline dates for 3 spot #Bitcoin ETF applications. I want to get ahead of it because there’s a pretty good chance we’ll see delay orders from the SEC. Delays WOULD NOT change anything about our views & 90% odds for 19b-4 approval by Jan 10, 2024 pic.twitter.com/LE7sOlHAHM
Earlier, the Nasdaq exchange placed an application for an Ethereum ETF proposed by BlackRock. BlackRock has submitted a 19b-4 filing for its own Ethereum ETF on Nasdaq, where the company intends to list.
The document also states that once the ETH fund is approved, Coinbase Custody Trust Company will become the primary custodian of all Ethereum coins.
Not a ton of winning to report here: A new SEC filing shows that Donald Trump‘s Truth Social lost some $73 million in net sales in its first 16 months.
In a sprawling, 530-page filing with the federal Securities and Exchange Commission (see it here), the social media platform championed by the former president lost $50 million on $1.4 million in net sales in calendar 2022, after launching in February of that year. The losses narrowed some for the first half of 2023, with the platform down $23 million from January-to-June, which extrapolates to $46 million for the full year.
Trump revealed Truth Social in October 2021 — nine months after he was banned from Twitter in the aftermath of the January 6 attack on the U.S. Capitol. It was launched via a merger of a then-newly formed company called Trump Media and Technology Corp. with a Miami-based special purpose acquisition company, Digital World Acquisition Corp. SPACs are set up for the sole purpose of merging with another entity for an initial public offering.
The SEC began investigating Truth Social’s SPAC deal in December 2021, just as former Rep. Devin Nunes (R-CA) quit Congress to become CEO of TMTG. Digital World Acquisition Corp revealed in a filing at the time that it had received a request for documents relating to “meetings of DWAC’s Board of Directors, policies and procedures relating to trading, the identification of banking, telephone and email addresses, the identities of certain investors, and certain documents and communications between DWAC and TMTG,” chaired by Trump.
Its launch announcement said Truth Social’s mission is to “create a rival to the liberal media consortium and fight back against the Big Tech companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America.” The news release also claimed that the platform intended to launch a subscription video on demand service, TMTG+, that would feature “non-woke” entertainment programming. That has failed to materialize thus far.
Truth Social was announced about a year after the launch of Parler, a social networking platformed initially supported by Trump and other conservatives who saw red over heightened scrutiny of Facebook and Twitter posts during the 2020 election season. Parler was suspended from Apple’s app store days after the Capitol siege and later removed from Amazon Web Services and “every vendor,” its CEO John Matze said. Kanye West flirted with acquiring the platform a year ago but ultimately did not.
Our sister publication The Hollywood Reporter first reported on the Truth Social SEC filing today.
CME overtakes Binance to grab largest share of Bitcoin futures open interest
Bitcoin’s futures market is showing an interesting shift as global derivatives marketplace the Chicago Mercantile Exchange (CME) has surpassed Binance in terms of Bitcoin futures open interest. This change occurred after Bitcoin exceeded the $37,000 mark for the first time in over 18 months.
However, James Seyffart, a research analyst at Bloomberg Intelligence specializing in exchange-traded funds, questioned whether the increasing open interest in Bitcoin futures on CME would address historical concerns of the United States Securities and Exchange Commission regarding the depth of Bitcoin markets and the potential for market manipulation.
“Okay this is interesting… Does this constitute a ‘market of significant size’ now?” Seyffart stated in a post on X (formerly Twitter).
Cryptoqueen’s OneCoin legal chief pleads guilty to fraud
The former head of legal and compliance at OneCoin is looking at a potential 10-year prison term for her involvement in the $4 billion cryptocurrency trading scheme. In Manhattan federal court, the ex-compliance chief of OneCoin, Irinia Dilkinska, pleaded guilty to charges of wire fraud and money laundering.
According to a statement from the U.S. Department of Justice, U.S. District Judge Edgardo Ramos accepted Dilkinska’s guilty plea. She admitted to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Each charge carries a maximum sentence of five years in prison.
Dilkinska is scheduled for sentencing on February 14, 2024, facing a potential maximum sentence of 10 years in prison for her role in the OneCoin scheme.
Genesis seeks court’s approval to reduce Three Arrows Capital claim from $1B to $33M
Bankrupt cryptocurrency lender Genesis has asked the court to approve its proposed settlement agreement with the collapsed crypto hedge fund Three Arrows Capital (3AC).
In a recent court document, Genesis stated that 3AC should be given a claim of $33 million against Genesis. This represents 3.3% of the total claims initially made against Genesis, which amounted to $1 billion.
According to Genesis, 3AC’s claims against Genesis were the largest asserted claims in Chapter 11 cases associated with the collapse of the FTX exchange. Genesis stressed that the 3AC debtor was one of Genesis’s largest borrowers from 2020 to 2022, up until the time of its collapse.
SafeMoon CEO bail release goes on hold after Feds cite flight risk
SafeMoon CEO Braden John Karony’s bail release has been delayed by U.S. federal prosecutors, who argue that he may try to leave the country due to his alleged access to funds and connections abroad. The prosecutors expressed concerns that his release could pose a flight risk and be a potential danger to the community.
The delay comes after a New York District Judge, LaShann DeArcy Hall, decided to put a hold on the bail release order issued on Nov. 8 by a Utah Magistrate judge, who had allowed Karony to be released on a $500,000 bail. However, prosecutors contested this decision, claiming that the release order was made “without consideration of the defendant’s substantial financial means and ability to flee,” and they emphasized that his release could be a “continued danger to the community.”
Binance to terminate Russian ruble deposits next week
Binance users in Russia need to take note: They have a little over two months, until Jan. 31, 2024, to withdraw their rubles from the platform. Binance is wrapping up its operations in Russia and plans to stop accepting deposits in Russian rubles from November 15, 2023.
This comes after Binance declared its complete exit from Russia by selling its business to a newly established crypto exchange called CommEX in September 2023. However, there’s been limited information about the details of the deal, including the size of the transaction and the founders of CommEX, causing some controversy.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $37,249, Ether (ETH) at $2,078 and XRP (XRP) at $0.67. The total market cap is at $1.42 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week were FTX Token (FTT) at 250.48%, Kaspa (KAS) at 67.23% and Cronos (CRO) at 52.20%.
The top three altcoin losers of the week are Maker (MKR) at -3.39%, Tether Gold (XAUt) at -2.60% and PAX Gold (PAXG) at -2.51%.
SEC Chair Gensler cannot continue to abuse the powers of his agency to fulfill a political agenda of driving the new and promising digital asset industry offshore.”
Binance’s Chief Compliance Officer crudely but succinctly summed up this case when he admitted that Binance was ‘operating as a fking unlicensed securities exchange in the USA bro.’ He was right.”
In Web3, it’s not the code that’s king, but the community. Instead of perfecting backend logic, focus on front-end transparency.”
Tiago Serôdio, head of community at Partisia Blockchain
I say, ‘Sorry, we are boring.’ But we are one of the oldest projects. We are very big… We are the one who has the most changes on GitHub, and we have not been down for over 2000 days… Boring sometimes is good.”
Bitcoin ‘Terminal Price’ hints next BTC all-time high is at least $110K
As the price of BTC hovers around its highest levels in the past 18 months, analysts are already speculating about the potential upward trajectory it may take in the upcoming months and years. Bitcoin may next be a “sell” at $110,000 as its new bull cycle plays out, a classic on-chain indicator suggests.
Analyzing its Terminal Price, Look Into Bitcoin creator Philip Swift described its value as a “simple” method of estimating long-term BTC price peaks. Terminal Price is calculated from Bitcoin’s so-called “Transferred Price” — a value derived by dividing “Coin Days Destroyed” by the existing supply. Not every all-time high reaches Terminal Price, but BTC/USD did hit the trendline during its 2017 all-time and initial peak in April 2021. The current all-time high of $69,000, seen in November of that year, fell short.
As Terminal Price increases with time, $110,000 may ultimately end up a conservative target should the next all-time high occur only later in the next cycle.
FUD of the Week
JPEX scandal: Taiwan determines new suspects in alleged fraud — Report
Taiwanese prosecutors are seeking to detain Chang Tung-ying, the chief partner at JPEX’s Taiwan office, on charges of fraud related to the JPEX cryptocurrency exchange. The situation surrounding the collapsed exchange is unfolding, with the Taipei District Prosecutors Office (TDPO) reportedly identifying new suspects. According to a report from local TV channel TVBS News on November 9, the TDPO has requested the custody of Chang Tung-ying over allegations of fraud.
As part of the ongoing JPEX investigation, prosecutors in Taipei searched nine locations and summoned Chang along with three other individuals believed to be involved. Chang and JPEX lecturer Shih Yu-sheng (also known as Shi Yu) are considered suspects in the case for violating the Banking Act and the Money Laundering Control Act.
Crypto exchange CoinSpot reportedly suffers $2M hot wallet hack
Blockchain security firm CertiK indicates that the recent $2.4 million theft from Australian cryptocurrency exchange CoinSpot hot wallet likely occurred due to a “private key compromise.” CoinSpot appears to have experienced a hack, involving the probable compromise of a private key in one of its hot wallets.
Pseudonymous blockchain investigator ZachXBT highlighted two transactions on Nov. 8 that entered the wallet belonging to the alleged hacker. Subsequently, the wallet’s owner transferred the funds to the Bitcoin network via THORChain and Wan Bridge. CertiK stated that the apparent exploit was likely the result of a “probable private key compromise” on at least one of CoinSpot’s hot wallets.
According to Etherscan data, a transaction of 1,262 Ether, valued at $2.4 million at current prices, originated from a recognized CoinSpot wallet and entered the wallet linked to the alleged hacker.
A crypto wallet linked to the digital exchange Poloniex has experienced suspicious outflows, evident on the blockchain explorer Etherscan. Blockchain security experts suspect a breach, resulting in attackers draining up to $100 million in crypto.
On Nov. 10, millions in crypto assets were moved from an account labeled Poloniex 4 on Etherscan. Initially estimated at $60 million, later assessments revealed the loss exceeded $100 million. CertiK, a blockchain security firm, suggests a “private key compromise” as the likely cause and notes that the funds have already been transferred to four externally owned accounts, with some converted into Ether.
Exclusive: 2 years after John McAfee’s death, widow Janice is broke and needs answers
Two years after John McAfee’s death, his wife, Janice, is still unable to get closure. “All I want is to see his body for myself and know that really happened.”
Animoca buys Twitch-like platform and Web3 gaming was a major talking point at Binance Blockchain Week.
6 Questions for Lugui Tillier about Bitcoin, Ordinals, and the future of crypto
Lugui Tillier is the commercial director for Lumx Studios, one of the top cryptocurrency firms in Rio de Janeiro — a city with a burgeoning crypto industry.
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The U.S. Securities and Exchange Commission (SEC) has fired back at Binance’s recent motion to dismiss the regulator’s lawsuit against the exchange, calling the latter’s arguments a “tortured interpretation of the law.”
In an 88-page filing with the DC Circuit on Tuesday, the agency argued that Binance had ignored most of its core allegations in a “bid to evade accountability” for its alleged violations of securities law.
Countering Binance’s Theatrics
In its preliminary statement, the SEC cited a quote mentioned in its original lawsuit, in which Binance’s Chief Compliance Officer said the company was “operating as a fking unlicensed securities exchange in the USA bro.”
“Defendants now seek to avoid the repercussions of their actions by asking this Court to dismantle decades of foundational precedent upon which the nation’s securities laws operate,” wrote the SEC, accusing the exchange of “theatrics” to distract from its violations.
In its June filing, the SEC said 12 cryptos on Binace’s platform fit the bill despite Binance never registering as a securities exchange.
In its motion to dismiss in September, Binance accused the SEC of “attempting to impose penalties retroactively” without providing clear guidance on how crypto companies can remain compliant.
It also accused the SEC of trying to claim regulatory power over the crypto industry by distorting the text of existing securities law.
By contrast, the SEC claims Binance would install a “rigid framework” for securities regulation, adding arbitrary new prongs to the Howey Test – a decades-old legal precedent for identifying investment contracts.
For example, the exchange argued that contracts must be “forward-looking” and involve “post-sale obligations [that] are legally enforceable,” among other things, for which the company “not cite one case holding that these nebulous requirements are part of the analysis.”
Are Cryptos Really Like Oranges?
Binance also tried to compare cryptocurrencies within an investment contract to oranges and baseball cards – an analogy taken up by other crypto lobbyists that have backed Binance in its legal battle. The comparison is intended between the subject of an investment contract – which could be an orange, crypto, or any other asset – and the “investment contract” itself.
However, the SEC dismissed this comparison as “absurd.”
“If oranges alone were at issue, those selling and promoting these assets and Defendants themselves would have had no need to entice investors with extended marketing campaigns touting their potential to increase in value based upon the efforts of others,” the agency wrote.
In response to the SEC’s filing, former official John Reed Stark praised their arguments as “compelling and strongly supported in both fact and law.”
“Stick a fork in it, Binance, you’re done,” he added.
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The US Securities and Exchange Commission (SEC) has accused two former CEOs of collapsed California-based tech company Bitwise Industries, of alleged misrepresentation and fraud, which they used to raise funds from unsuspecting investors.
The defunct company is not associated with the major crypto asset manager, Bitwise, even though both entities bear identical names.
Former Bitwise Industries Founders Charged With Fraud
In a press release published on Nov. 9, 2023, the alleged fraudulent scheme by Bitwise Industries co-founders and co-CEOs Jake Soberal and Irma Olguin became exposed in May 2023 after the company failed to pay its employees and furloughed all its workers – around 900 of them – who were later dismissed. The startup’s board of directors also fired the CEOs.
According to the SEC, Soberal and Olguin made false representations of the company’s financial health, going as far as providing forged audit reports and bank statements to investors in a bid to portray the startup as a thriving business with an impressive financial outlook. On the contrary, Bitwise Industries faced liquidity issues and was unable to generate adequate funds.
In a statement by the Regional Director of the SEC’s San Francisco regional office, Monique C. Winkler, there was an instance where Soberal and Olguin “allegedly conspired to send a purported screenshot to investors of a company bank account showing a cash balance of $23.4 million. In actuality, the account had only $325,100 in it. That’s not a bank error—that’s a fraud, and the SEC is taking action to hold the defendants accountable.”
The duo’s fraudulent act enabled them to raise around $70 million from investors. The SEC is accusing the co-CEOs of “violating the anti-fraud provisions of the federal securities laws.” Meanwhile, the Bitwise Industries founders agreed to settle the charges against them, as stated in the press release.
Bitwise Asset Management Not Related to Bitwise Industries
Also, the US Attorney’s Office for the Eastern District of California filed criminal charges against the Bitwise Industries co-founders, alleging that they used fraud to receive over $100 million from individuals and businesses to inject into a “dying venture.”
Soberal and Olguin could face up to 20 years in prison and be fined $250,000 if they are convicted.
Although Bitwise Industries bears an identical name to the well-known crypto asset manager Bitwise, both companies are not connected. Bitwise Asset Management released a statement distancing itself from the defunct tech startup.
“San Francisco-based Bitwise Asset Management, Inc., the largest crypto index fund manager in America, has no relationship with, and has never had a relationship with, the now-defunct Bitwise Industries, a former technology company based in Fresno, California.”
Bitwise, along with other companies such as BlackRock and Invesco, is currently awaiting approval from the SEC for its spot Bitcoin ETF application.
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In a recent development, the United States Supreme Court has decided to take on a lawsuit related to a Dogecoin sweepstakes, which involves Coinbase and its customers. This comes almost a year after the US District Court for the Northern District of California initially denied the exchange’s motion to force the class-action lawsuit to arbitration.
The class action, which was filed in 2021, alleged that Coinbase deliberately obscured that customers could enter its “Trade Doge, Win Doge” giveaway without having to trade $100 of the meme coin on its platform. The largest US-based crypto exchange was accused of deliberately concealing a free mail-in entry option to drive the trading volume and liquidity of Dogecoin, a new listing at the time.
Coinbase attempted to push the lawsuit out of the courtroom and into private arbitration, highlighting the arbitration clause in its user sign-up agreement. However, the federal judge ruled that the sweepstakes agreement, which favors courtroom litigation as a resolution method, superseded the sign-up contract.
Court Rules In Favor Of Plaintiff In Sweepstakes Case
On Friday, November 3, a federal judge in California, with the support of the 9th U.S. Circuit Court of Appeals, upheld the decision that a prior sweepstakes agreement, which required the matter to be resolved in a traditional courtroom setting, should be given precedence.
The class action is led by a Coinbase user, David Suski, who claims he would not have paid $100 to participate in the Dogecoin giveaway if Coinbase had adequately disclosed the free entry option. The lawsuit seeks over $5 million in damages for the sweepstakes participants who paid the $100 entry fee.
David J. Harris, Suski’s Counsel, said in a statement:
We are hopeful that the court, like every judge below, will hold Coinbase to the plain language of its own contracts with consumers.
The Supreme Court’s decision to review this case represents a game-changing moment in the crypto-legal space. This is even more so considering that large companies often favor arbitration, which is less costly and more timely than courtroom litigation.
In the latest development, Coinbase said in a court filing that the SEC is overstepping its authority and its definition of what qualifies as a security is too wide. This comes amidst the cryptocurrency firm’s bid to dismiss the financial regulator’s lawsuit.
Dogecoin price at $0.06886 on the daily timeframe | Source: DOGEUSDT chart on TradingView
Featured image from Leadership News, chart from TradingView
Hayden Adams, the founder of Uniswap, one of the world’s largest decentralized exchanges (DEXes), thinks the jury was right to find Sam Bankman-fried, also known as SBF, the disgraced founder of FTX, a now-defunct exchange, guilty on all seven charges brought forward by the prosecution.
SBF’s Guilty Verdict Is Correct: But Not Time To Celebrate
Taking to X on November 3, Adams, one of the influential figures in decentralized finance (DeFi), said though the jury might be correct in their decision, it might not be the right time to celebrate. The founder explained that the FTX bankruptcy not only led to users losing billions, but the industry took a massive reputational hit.
In Adams’ view, the few winners in this case are the lawyers involved and the various crypto opponents the founder didn’t mention.
The collapse of FTX in November 2022 marked a dark history in crypto. Happening at the tail-end of what was already a challenging year for leading assets like Bitcoin (BTC) and Ethereum (ETH), the fall of FTX caught the community mostly unawares.
Days before the then-popular exchange declared bankruptcy, Alameda Research and Caroline Ellison, one of the top executives associated with FTX, said they were willing to buy back FTT, the crypto token issued by FTX.
The United States Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) pressed charges against FTX and Sam Bankman-fried weeks after they declared bankruptcy. The DOJ charged Bankman-Fried with several charges, including conspiracy to commit wire fraud and money laundering.
The SEC said Bankman-Fried orchestrated a scheme to defraud investors and customers. Of note, the regulator said Bankman-Fried misled investors about the health of FTX and its trading wing, Alameda Research. The former FTX boss pleaded not guilty to all charges.
FTX Collapse Is A Lesson To Crypto
After four weeks in a trial that began in early October, Sam Bankman-Fried was found guilty of seven criminal counts. However, the official sentencing will be in March 2024. The former FTX founder could face a maximum possible sentence of 115 years in prison.
Following this verdict, Adams said, learning from the FTX collapse, the industry should focus on technology and the sphere’s values, mainly revolving around building decentralized systems that are open, auditable, yet secure. To stay safe, the Uniswap founder said crypto users should easily pick out “personality cult sociopaths,” which enabled Sam Bankman-Fried to thrive before being caught after FTX fell.
The SEC faces a series of legal challenges, including a recent rebuke from the Fifth Circuit Court, highlighting scrutiny over its regulatory decisions and potential implications for the cryptocurrency market.
Recent legal proceedings have prompted commentary from Ripple’s Chief Legal Officer, Stuart Alderoty, regarding the United States Securities and Exchange Commission’s (SEC) actions under the leadership of Chair Gary Gensler.
Alderoty has pointed to a “deeply concerning trend” of decisions by the SEC that he considers to be arbitrary and lacking a solid legal foundation.
Another day and another Court finds that the SEC again acted arbitrarily and capriciously. Is anyone else concerned about this very troubling pattern of the SEC flouting any faithful allegiance to law under Mr. Gensler? https://t.co/5bUgSBUOI8
The commentary follows a decision by the Fifth Circuit Court of Appeals, which on Oct. 31, criticized the SEC’s rule regarding stock buyback disclosures as arbitrary and insufficiently justified. The ruling called on the SEC to provide more substantive reasoning for its regulations, echoing Ripple’s triumph in the XRP lawsuit earlier in July 2023.
These developments come amidst a broader debate on the SEC’s approach to regulation and enforcement, especially in the evolving cryptocurrency sector. In the XRP lawsuit, Judge Analisa Torres ruled in favor of Ripple executives, dismissing charges against CEO Brad Garlinghouse and executive chairman Chris Larsen.
The lawsuit’s outcome, especially the Summary Judgment on July 13, which favored Ripple concerning retail sales of XRP tokens, may have far-reaching implications for the crypto industry’s regulatory landscape.
The SEC has been challenged by business and trade associations over a rule that requires companies to report daily on share repurchases every quarter and explain their reasons for such transactions.
Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), called for compliance from an industry he has frequently tagged as “rife with fraud”.
Gensler advised cryptocurrency operators and service providers to stop tricking investors in his message to the digital industry on the Bitcoin white paper’s 15th anniversary.
Rhetoric from the SEC’s Chairman has consistently painted virtual currencies akin to the wild west, where bad actors defraud unsuspecting customers with the guise of decentralized technology.
The regulator’s short address saluted Satoshi Nakamato’s brainchild as the progenitor of crypto while throwing aspersions on the so-called anonymity achieved through blockchain networks.
If Satoshi Nakamoto went as Satoshi Nakamoto for Halloween, would we be able to tell?
Happy 15th anniversary to Satoshi’s famous white paper that started crypto.
Any crypto companies that are tricking investors should start treating them to compliance with the securities laws.
Gensler’s post came amid bullish sentiment for Bitcoin (BTC) as prices rose above $30,000 and expectations of a forthcoming spot Bitcoin ETF approval from the securities regulator. The SEC Chair said his commission is currently reviewing eight-to-10 spot BTC applications while ETF experts placed the total number of filings at 12.
Possible dates for approval remained speculative, while updates from Wall Street titan BlackRock gave hints at the status of developments. The issuer filed for a CUSIP number which is procedural for listing financial instruments.
The Depository Trust and Clearing Corporation (DTCC) added BlackRock’s spot Bitcoin ETF to its clearing list. The update is routine and part of bringing an ETF to market according to experts.
Per reports, the DTCC also listed, removed, and relisted BlackRock’s iShare Bitcoin Trust (IBTC) on its website as part of ongoing monitoring and research on the buzz around spot Bitcoin ETFs.
Georgia boasts top-tier status in both scoring offense and defense. Their offense yields 40.5 points per game, while their defense limits opponents to just 14.8 points on average.
Georgia’s rushing game is led by senior Daijun Edwards, who’s gained 556 yards and reached the end zone eight times. In the face of running back injuries, sophomore WR Dillon Bell has stepped up, gaining 124 yards with a 5.4-yard average and two touchdowns.
Quarterback Carson Beck, with a perfect 8-0 record, is on pace for a record-breaking 73.0 completion percentage, ranking seventh nationally. Additionally, he holds the seventh spot in passing yardage per game (307.8) and 12th in passing efficiency (166.2).
Away: Missouri Tigers
On the other side of the field, the Missouri Tigers are off to their best start since 2013 securing their highest ranking in the national polls since 2014, currently at No. 14.
Missouri’s offense is averaging 33.9 points per game, with a solid defensive record allowing just 23.3 points per game. In the Red Zone, they excel with a 34-out-of-35 conversion rate, 24 of which result in touchdowns.
RB Cody Schrader is the heart of their ground game, accumulating 807 yards and nine touchdowns. He averages 100.9 yards per game. QB Brady Cook shines with a remarkable 69.8 percent completion rate, passing for 2,259 yards, 15 touchdowns, and only 3 interceptions.
Georgia Bulldogs Home Feed:
SiriusXM channel 191 in your vehicle
Channel 962 on the SiriusXM App
Missouri Tigers Away Feed:
SiriusXM channel 192 in your vehicle
Channel 963 on the SiriusXM App
Want to listen to more games? Throughout the 2023 College Football season, SiriusXM listeners get access to dozens of game broadcasts each week involving teams from the ACC, Big Ten, Big 12, Pac-12, SEC, and other conferences — plus Army, Navy, HBCU football and more. For more information about SiriusXM’s college football offerings, click here.
Week 10 of the college football season is set to go. Here is the full schedule for the AP Top 25 teams and where you can listen via the SiriusXM App on Saturday, November 4.
For more information about SiriusXM’s college football offerings, click here.
The Tigers (7-1) travel to take on the undefeated Bulldogs (8-0). Missouri got the win over South Carolina last week 34-12, while Georgia grabbed another W against Florida 43-20.
The Boilermakers (2-6) head to Ann Arbor, MI to battle the Wolverines (8-0). The Boilermakers will have a tough matchup against the Wolverines, who shutout Michigan State in their last game on October 21.
7:30pm ET – Los Angeles Memorial Coliseum, Los Angeles, CA
The undefeated Huskies (8-0) head to Los Angeles, CA to take on the Trojans (7-2). Washington beat Stanford 42-33 last week, while USC went on the road and took down California at the wire 50-49.
Want to listen to more games? Throughout the 2023 College Football season, SiriusXM listeners get access to dozens of game broadcasts each week involving teams from the ACC, Big Ten, Big 12, Pac-12, SEC, and other conferences — plus Army, Navy, HBCU football and more. For more information about SiriusXM’s college football offerings, click here.
The Bitcoin price has been on a mesmeric run in the past few weeks, largely due to talks of the potential approval of a Bitcoin spot ETF (exchange-traded fund) in the United States. And there has been broad commentary about what is to come for the premier cryptocurrency should the Securities and Exchange Commission (SEC) greenlight the current applications for a spot ETF.
Cantor Fitzgerald, a prominent investment and brokerage firm, is amongst the latest entities to weigh in on the possibility and the potential impact of a Bitcoin spot ETF in the United States.
Here’s Why Cantor Fitzgerald Thinks Bitcoin Spot ETF Will Be Approved
According to a Bloomberg report, Josh Siegler and Will Carlson, research analysts at Cantor Fitzgerald, are becoming “increasingly confident” that the highly-anticipated Bitcoin spot ETF would receive the approval of the SEC in the US.
The Cantor Fitzgerald analysts believe that the SEC, which has been reluctant to approve the Bitcoin investment product due to various market concerns, is now more likely to greenlight the modified and newly filed applications.
The report highlighted that “a comprehensive surveillance-sharing agreement with a regulated market of significant size” might force the hands of the SEC. Interestingly, all the pending spot ETF filings appear to now include a surveillance-sharing agreement in order to detect and address market irregularities.
Furthermore, Cantor’s analysts mentioned the recent ruling in favor of Grayscale, which overturned the SEC’s rejection of the asset manager’s proposal to convert its Bitcoin trust into an ETF. Siegler and Carlson added:
Ultimately, the court found that the SEC failed to explain why it approved Bitcoin futures ETFs, but rejected Grayscale’s spot offering, despite substantial evidence that the two products are similar, across several regulatory factors.
Finally, Siegler and Carlson believe “a Bitcoin spot ETF approval is the most important short-term catalyst for Bitcoin’s price.” To support this assertion, the analysts cited the latest price rally by the premier cryptocurrency, which all began with an erroneous headline that BlackRock’s ETF had been approved.
The Cantor Fitzgerald analysts added:
The approval of a spot Bitcoin ETF in the US will be “a bedrock moment” for Bitcoin’s long-term adoption and legitimization.
Bitcoin Price Overview
As of this writing, Bitcoin trades at $34,104, with a negligible 0.2% increase in the past 24 hours. The market leader has been moving mostly sideways since failing to close above $35,000 – its highest level in almost 18 months – earlier this week.
Nevertheless, BTC has maintained a huge portion of its profit on the weekly timeframe, with a substantial 13.2% gain in the past seven days. Meanwhile, the premier cryptocurrency has jumped nearly 27% in the past two weeks, according to CoinGecko data.
Bitcoin price thickens on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Sam Bankman-Fried takes the stand on FTX’s collapse
Sam “SBF” Bankman-Fried testified this week in his ongoing criminal trial in the Southern District of New York, denying any wrongdoing between FTX and Alameda Research while acknowledging making “big mistakes” during the companies’ explosive growth. Highlights of his testimony include denying directing his inner circle to make significant political donations in 2021, as well as claims that FTX’s terms of use covered transactions between Alameda and the crypto exchange. Additionally, Bankman-Fried testified that he requested additional hedging strategies for Alameda in 2021 and 2022, but they were never implemented. The trial is expected to conclude within the next few days.
‘Buy Bitcoin’ search queries on Google surge 826% in the UK
Google searches for “buy Bitcoin” have surged worldwide amid a major crypto rally, with searches in the United Kingdom growing by more than 800% in the last week. According to research from Cryptogambling.tv, the search term “buy Bitcoin” spiked a staggering 826% in the U.K. over the course of seven days. In the United States, data from Google Trends shows that searches for “should I buy Bitcoin now?” increased by more than 250%, while more niche searches, including “can I buy Bitcoin on Fidelity?” increased by over 3,100% in the last week. Zooming out further, the search term “is it a good time to buy Bitcoin?” saw a 110% gain worldwide over the last week.
US court issues mandate for Grayscale ruling, paving way for SEC to review spot Bitcoin ETF
The United States Court of Appeals has issued a mandate following a decision requiring Grayscale Investments’ application for a spot Bitcoin exchange-traded fund (ETF) to be reviewed by the Securities and Exchange Commission (SEC). In an Oct. 23 filing, the “formal mandate” of the court took effect, paving the way for the SEC to review its decision on Grayscale’s spot Bitcoin ETF. The mandate followed the court’s initial ruling on Aug. 29 and the SEC’s failure to present an appeal by Oct. 13. To date, the SEC has yet to approve a single spot crypto ETF for listing on U.S. exchanges but has given the green light to investment vehicles linked to Bitcoin and Ether futures.
Coinbase disputes SEC’s crypto authority in final bid to toss regulator’s suit
The U.S. Securities and Exchange Commission overstepped its authority when it classified Coinbase-listed cryptocurrencies as securities, the exchange has argued in its final bid to dismiss a lawsuit by the securities regulator. In an Oct. 24 filing in a New York District Court, Coinbase chastised the SEC, claiming its definition for what qualifies as a security was too wide, and contested that the cryptocurrencies the exchange lists are not under the regulator’s purview. The SEC sued Coinbase on June 6, claiming the exchange violated U.S. securities laws by listing several tokens it considers securities and not registering with the regulator.
Gemini sues Genesis over GBTC shares used as Earn collateral, now worth $1.6B
Cryptocurrency exchange Gemini filed a lawsuit against bankrupt crypto lender Genesis on Oct. 27. At issue is the fate of 62,086,586 shares of Grayscale Bitcoin Trust. They were used as collateral to secure loans made by 232,000 Gemini users to Genesis through the Gemini Earn Program. That collateral is currently worth close to $1.6 billion. According to the suit, Gemini has received $284.3 million from foreclosing on the collateral for the benefit of Earn users, but Genesis has disputed the action, preventing Gemini from distributing the proceeds. Genesis filed for bankruptcy in January. It had suspended withdrawals in November 2022, which impacted the Gemini Earn program.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $34,143, Ether (ETH) at $1,789 and XRP at $0.54. The total market cap is at $1.26 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Pepe (PEPE) at 72.08%, Mina (MINA) at 55.47% and FLOKI (FLOKI) at 53.33%.
The top three altcoin losers of the week are Bitcoin SV (BSV) at -10.27%, Toncoin (TON) -3.14% and Trust Wallet Token (TWT) at -0.82%.
“I should say, I am not a lawyer, I am just trying to answer based on my recollection. […] At the time [at] FTX, certain customers thought accounts would be sent to Alameda.”
“Without prejudging any one asset, the vast majority of crypto assets likely meet the investment contract test, making them subject to the securities laws.”
Gary Gensler, chair of U.S. Securities and Exchange Commission
“I do not believe there has been a single serious conversation regarding a settlement between Ripple […] and the SEC. The SEC is pissed and embarrassed and wants $770M worth of flesh.”
“He [Sam Bankman-Fried] thought he was going to take that money, and […] he would out-trade the market and put the money back and end up as a half-a-trillionaire, but it never works like that.”
Bitcoin beats S&P 500 in October as $40K BTC price predictions flow in
Bitcoin surfed $34,000 at the end of the week as attention turned to BTC price performance against macro assets. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding steady, preserving its early-week gains.
The largest cryptocurrency avoided significant volatility as the weekly and monthly closes — a key moment for the October uptrend — drew ever nearer.
“I think Bitcoin will hang around this range for some time,” popular pseudonymous trader Daan Crypto Trades told X subscribers in one of several posts on Oct. 27. “Roughly $33-35K is what I’m looking at as a range. Eyes on potential sweeps of any of these levels for a quick trade,” he wrote.
FUD of the Week
UK passes bill to enable authorities to seize Bitcoin used for crime
Lawmakers in the United Kingdom have passed legislation allowing authorities to seize and freeze cryptocurrencies like Bitcoin if used for illicit purposes. Introduced in September 2022, the passed legislation aims to expand authorities’ ability to crack down on the use of cryptocurrency in crimes like cybercrime, scams and drug trafficking. One of the provisions of the bill permits the recovery of crypto assets used in crimes without conviction, as some individuals may avoid conviction by remaining remote.
Scammers create Blockworks clone site to drain crypto wallets
Phishing scammers have cloned the websites of crypto media outlet Blockworks and Ethereum blockchain scanner Etherscan to trick unsuspecting readers into connecting their wallets to a crypto drainer. A fake Blockworks site displayed a fake “BREAKING” news report of a supposed multimillion-dollar “approvals exploit” on the decentralized exchange Uniswap and encouraged users to visit a fake Etherscan website to rescind approvals. The fake Uniswap news article was posted on Reddit across several popular subreddits.
Kraken to suspend trading for USDT, DAI, WBTC, WETH and WAXL in Canada
Kraken will suspend all transactions related to Tether, Dai, Wrapped Bitcoin, Wrapped Ether and Wrapped Axelar in Canada in November and December. The suspensions may not surprise many Canadian cryptocurrency users, as they come on the heels of several other notable exchanges taking similar actions throughout 2023. OKX ceased operations in Canada in June after Binance announced its intention to do so in May.
5,050 Bitcoin for $5 in 2009: Helsinki’s claim to crypto fame
A Bitcoin adopter has outlined the various achievements of XRP, foreseeing a significant price increase for the cryptocurrency that could move it closer to the $10 milestone.
Bitcoin OG Says XRP $10 In Sight
In an X (formerly Twitter) post, Bitcoin OG, Lucky predicted that the value of XRP could significantly appreciate, pushing closer to the $10 mark. He stated that he had been observing the operations and state of affairs of the XRP ecosystem since July. He also expressed admiration for the XRP team, highlighting the strength and commitment the team has displayed during its lengthy legal battle with the United States Securities and Exchange Commission (SEC).
Been observing @Ripple‘s operations since the SEC win in July, I can’t help but applaud the team for staying focused in their commitment to the $XRP community.
Few projects recover from such a drawn-out legal battle that cost them $200 million, but we’ve seen the Ripple team… pic.twitter.com/3uVbFinpj9
Lucky commended the XRP team for its effort in staying strictly committed to the growth and health of its community. He mentioned many of the achievements made by XRP in recent months including multiple partnerships and the integration of XRP payments with renowned crypto exchanges like Bitstamp and Bitso.
He stated several ongoing expansion projects in the XRP ecosystem, including XRP utilities incorporated into the XRP ledger as well as the increased user base for the XRP Xumm wallet.
“With more developments and projects like the Xumm wallet steadily pouring into the XRP Ledger and gaining upwards of 600,000 users in 3 months, $XRP will grow massively,” Lucky said.
Total crypto market cap currently at $1.2 trillion. Chart: TradingView.com
Calling attention to all the recent developments in the XRP network, Lucky stated that XRP is on a path to explosive growth and he believes that the price of the cryptocurrency is already inching up to a $1 or $10 milestone.
“If I’m being honest, I’d say that the $XRP price isn’t as far from $1 or $10 as we think, looking at the current ecosystem developments,” Lucky stated.
Whales Move Over 55 Million XRP To Crypto Exchanges
Whale Alert, a prominent blockchain tracker and analytics system known for reporting large crypto transactions, has released new data showing deep-pocketed crypto investors moving millions of XRP tokens from unknown wallets into two major crypto exchanges.
Whale Alert disclosed two major XRP transactions on Friday to Bitstamp and Bitso. One transaction showed an XRP whale transferring 27,000,000 XRP tokens worth $14,879,092 to Bitstamp. Another transaction revealed 28,500,000 worth $15,704,941 moved to Bitso.
These large-scale transactions have caused mixed reactions within the XRP community as the price of XRP has shown tendencies to react according to the actions of prominent cryptocurrency whales.
Although the identity of the whales remains a mystery, the crypto community is closely monitoring the possible motivations behind these significant transactions and how they could impact the broader XRP market.
Hester Peirce of the United States Securities and Exchange Commission has issued a dissenting remark on the regulator’s approach to the crypto sector. In a statement on October 27, the crypto-friendly commissioner lambasted the SEC’s enforcement actions against the LRBY blockchain company.
Back in March 2021, the US securities regulator filed a lawsuit against LBRY, claiming the sale of the firm’s LBC token represented an offering of unregistered securities. In November 2022, the US Court finally ruled in favor of the SEC, subjecting LBRY to penalties imposed by the Commission.
Although LBRY did file an intent to appeal this ruling, it appears the blockchain firm will not be following through with this action, having recently announced plans to wind down its operations due to financial debts to the SEC, a private debtor, and its legal team.
SEC Lawsuit Against LBRY ‘Unsettling’, Hester Peirce Says
Diving into Hester Peirce’s most recent dissent against the SEC, the commissioner claimed to have found the agency’s enforcement action against LBRY “unsettling” and was never in support of the lawsuit against the blockchain firm.
Peirce stated the SEC’s decision to file a case against LBRY was quite “puzzling” as there were no “fraud allegations” in the commission’s complaint, nor did any evidence of fraudulent acts by the blockchain firm arise at the time the case was in litigation.
Rather, the SEC commissioner claimed that LBRY employed a “more conservative” approach than most crypto firms, as the LBRY blockchain only began operations following the sale of most LBC tokens.
In addition, Peirce also criticized the SEC for initially proposing a penalty of $44 million following its victory over LBRY, a fine that the commissioner claims to be disproportionate to the “alleged crime.” Only following the remedies hearing at the court did the SEC revise its penalty request to $111,614.
Peirce Urges SEC To Build Regulatory Framework For Crypto Space
In the statement on October 27, Peirce also stated there is no defined protocol for blockchain companies like LBRY to register their token offerings with the SEC, as the application of securities law to crypto projects is still unclear.
Peradventure if a company was able to even register its token offering, Peirce described such an act as not being a “particularly useful effort.” Rather than launching a lawsuit against LBRY, Peirce claims the SEC could have redeployed its resources into working on a well-defined regulatory framework applicable to crypto projects such as LBRY.
Peirce said:
The time and resources we expended on this case could have been devoted to building a workable regulatory framework that companies like LBRY could have followed. Then, the market could have decided LBRY’s fate.
Hester Peirce has expressed concern over the SEC’s approach towards crypto enforcement, explicitly referencing the recent LBRY case.
Commissioner Hester Peirce of the Securities and Exchange Commission (SEC) on Oct. 27 shared her thoughts about the agency’s treatment of blockchain-based file sharing and payment network LBRY.
In her statement, Peirce highlighted that LBRY had been singled out by the SEC despite it having a functioning blockchain with a real-world application. She decried the Commission’s role in the demise of LBRY following the company’s shutdown after failing to appeal the court decision that went against it.
“Are investors and the market really better off now after the Commission’s litigation contributed to the demise of a company that had built a functioning blockchain with a real-world application running on top of it?”
Hester Peirce, SEC Commissioner
The commissioner said the SEC was misaligned with its “misguided enforcement-driven approach to crypto.” She also condemned the regulator for not having a clear path mapped out for companies like LBRY to be able to register functional token offerings.
She argued that the SEC could have used the time and resources spent on the LBRY case to create clear regulations that would benefit the crypto sector instead of this blind blame game.
Columbia Business School professor Austin Campell echoed Commissioner Pearce’s sentiments and described the SEC’s conduct in the LBRY case as “wildly egregious” and a “national scandal.”
The LBRY settlement is a picture-perfect example of how not to regulate, and should be considered a national scandal.
With @HesterPeirce‘s statement today, I feel that I should finally weigh in on this one, to make clear just how wildly egregious the conduct of the SEC was in…
According to him, the SEC had a problem with how LBRY rolled out its native token. The company didn’t register it as a security. The Commission took punitive measures and demanded $44 million in fines, which Campbell felt was odd because there were no allegations or evidence of fraud.
Eventually, the court approved the fine but reduced it to $111,614. By then, it was too late. The damage was already done, and LBRY went bankrupt soon after.
Campbell went on to strongly advocate for a complete overhaul of the SEC’s leadership to allow rules more accommodating to innovations like blockchains rather than hindering them with what he considers outdated regulations.
If Google Trends data is anything to go by, it could mean that Americans don’t care about Bitcoin (BTC) or the interest is ultra-low and falling despite the series of bullish events in the last few days.
Americans Are Not Interested In Bitcoin?
A spot check of Google Trends over the past years shows that not only are searches related to “buy Bitcoin” discouragingly falling but are at 2023 lows, with related average daily searches scoring less than 20. The only time “buy Bitcoin” searches spiked was in early September when it rose to a score of 70, an indicator that more people were curious, willing to explore, and even buy the world’s most valuable coin.
Sentiment is a crucial factor in crypto because it can influence prices. To illustrate, when sentiment improves, crypto investors are more likely to buy and hold on to their treasured coins in hopes of riding the emerging trend and raking in profits.
Conversely, when crypto assets begin falling, as in 2022 and the second half of 2023, holders will often flee to safety, selling their coins for stablecoins like USDT or cash. In some instances, however, without an option, investors will look to exit for an established coin like Bitcoin or Ethereum (ETH), pumping those respective assets.
As the market evolves, sentiment can be influenced by news events, regulatory developments, or influencer comments. Elon Musk, the owner of X, the social media platform, has been sued on allegations that the billionaire deliberately conducted a pump-and-dump scheme, manipulating Dogecoin (DOGE) prices and profiting at the expense of others.
SEC Likely To Approve The First Spot Bitcoin ETF In The US
Google Trends is one of the tools users can use to gauge crypto sentiment. However, looking at events in the United States, interest in BTC is yearly low. This is despite the community expecting the Securities and Exchange Commission (SEC) to approve the first spot Bitcoin Exchange-Traded Fund (ETF).
After several attempts in the past, analysts have been gradually increasing the odds of the strict regulator green-lighting the first Bitcoin ETF in Q4 2023 or early 2023. Still, it needs to be clarified whether the agency will authorize one or multiple products simultaneously. If the SEC disapproves a Bitcoin ETF, JPMorgan analysts led by Nikolaos Panigirtzoglou said the agency could face “legal troubles.”
In anticipation of the product and ahead of Bitcoin halving in 2024, the coin recently broke above July 2023 highs, registering a new 2023 high above $35,000. Though prices have been steadying, the uptrend remains, and traders expect more gains.
