The Crypto Currier 5th December - more SEC vs. crypto

The SEC vs. crypto, and a judge just slapped the SEC down hard. A bond based on Tether has flopped. Is the US finally going after 'stablecoins'? And the Elon Musk-inspired TRUCK coins, because, crypto

The SEC is facing another defeat in its recycled and overly aggressive lawsuit against Kraken

The SEC's latest lawsuit against Kraken seems more and more like just another attempt to overreach its role and control an industry that is trying but struggling to adhere to outdated US regulation. It's trying, and so far failing, to apply traditional and outdated regulation to a new and ever-evolving industry.

The SEC's over-aggression isn't working. All it's doing is sending crypto exchanges away from the US to more accepting jurisdictions. In effect, this results in, for the US, a loss of tax money, a loss of jobs, a brain drain of many who will move, and a loss of any control whatsoever, when the regulator could have chosen to work together, collaboratively, with exchanges. This is resulting in the US losing its position as an innovation leader in this space.

It also shows a fundamental misunderstanding of the industry by the SEC. Not every crypto asset is a black-and-white security, by any definition of the word, and yet the SEC is trying to put all crypto assets into that box. By trying to do this but not equally classifying, say, physical Pokemon cards, as securities, it seems clear that the SEC is picking on the digital asset industry over others.?(Cointelegraph)

U.S. Judge Warns SEC Over 'False and Misleading' Request in Crypto Case

A U.S. District Judge has threatened to sanction SEC lawyers. Judge Robert Shelby has warned the SEC over its presentation of "false and misleading" arguments in the case of crypto firm Debt Box. The SEC allegedly misrepresented facts, leading to a temporary but damaging asset freeze on the firm, which the court later lifted. Judge Shelby highlighted the SEC's actions as undermining case integrity and causing Debt Box "irreparable harm." Sanctions, typically monetary fines, are imposed for false statements or court procedure violations. Initially, the SEC had accused Debt Box of selling unregistered securities and engaging in deceitful practises in crypto mining, but the SEC has been accused that its "misrepresentations… undermined the integrity of the case's proceedings". Another case of the SEC aggressively picking battles against crypto companies. (CoinDesk)

Elon Musk-inspired memecoins spike, again

Elon Musk has yet again caused a load of meme coins to spike, albeit unintentionally this time. Meme coin creators capitalised on the launch of the Tesla Cybertruck with 'TRUCK' tokens. These followed GROK tokens, seemingly named after Musk-owned X's GrokAI chatbot, and the aptly named GFY tokens. GFY stands for Go do whatever you want to Yourself, a nod to Musk's telling X advertisers what they could do to themselves after withdrawing from X.? Because crypto is crypto, the market cap for this latest round of memes went up to $25 million, with one seeing $19 million in trading volume in 24 hours. Off. A. Joke. (CoinDesk)

Philippines joins global?crypto?crackdown on Binance

The Philippines SEC has joined the crackdown on Binance. It's the latest regulator to issue a warning against the exchange, stating the exchange has been operating without a licence. It has warned, "Binance is not registered as a corporation in the Philippines and operates without the necessary licence and/or authority to sell or offer any form of securities.”

The SEC highlights that Binance "has been actively employing promotional campaigns on various social media platforms.” Its caution extends to retail investors, advising against dealings with unregulated entities. Furthermore, it warns sellers, agents, promoters, and influencers about the legal risks of encouraging account openings on unregulated platforms, including potential imprisonment of up to 21 years and fines up to $90,000. (Finance Magnates)

Cristiano Ronaldo slammed with $1 billion lawsuit for promoting Binance?NFTs

Football star Cristiano Ronaldo has been hit with a $1 billion class-action lawsuit for allegedly making "deceptive statements" while promoting Binance's "CR7" NFT collection, which features Ronaldo in seven poses. Plaintiffs claim that both Binance and Ronaldo knew the promotion "targeted consumers unfamiliar with?crypto.” The CR7 collection, featuring Ronaldo in various poses, launched in November 2022, with prices initially starting at $77. That NFT, which started at $77, is now worth $1. (Business Insider)

Stablecoins such as Tether may be in U.S. sights, top U.S. Treasury Official warns

I love any news that is anti-Tether. The Deputy Secretary of the US Treasury, Wally Adeyemo, has emphasised the need for non-U.S. stablecoin issuers to implement measures against misuse by terrorists and other criminal actors. In a speech for a Blockchain Association event, Adeyemo highlighted the crypto industry's risks in illicit finance, focusing on stablecoins. He stated, "We cannot allow dollar-backed stablecoin providers outside the United States to have the privilege of using our currency without the responsibility of putting in place procedures to prevent terrorists from abusing their platform." Adeyemo also reiterated the importance of industry action against digital assets' misuse by criminals, noting that inadequate industry response poses a national security risk. He specifically noted that he had previously "also made clear the importance of industry proactively taking steps to prevent the use of digital assets by transnational criminal organizations, terrorists, and rogue states."

The industry, however, hasn't fully embraced that opening. "While some have heeded our calls and taken steps to prevent illicit activity, the lack of action by too many firms—both large and small—represents a clear and present risk to our national security," he added. Adeyemo didn't specifically name Tether. He didn't need to. It's the largest US dollar stablecoin, by far, and has long been cited for its preference and use by criminal groups. (CoinDesk)

Tether’s ‘new era for capital raises’ Bitfinex bond flops

Bitfinex Securities' first tokenised bond, ALT2611, launched on Nov. 15, has been labelled a 'flop'. It had aimed to raise $10 million in two weeks. It raised $1.5 million, with the offering now being extended due to low investment. As a crypto trader tactfully commented on the failure, "USDT ain’t going to dominate capital markets. BitFinex Securities Kazakhstan isn’t keeping investment bankers up at night.”

On its launch, Tether CTO Paolo Ardoino optimistically?labeled it ?as a “new era for capital raises” that would see Tether's USDT stablecoin become the “underlying denomination asset of this new financial system.” The flop may be related to doubts about Tether's backing, or alleged lack thereof, and Bitfinex's banking, which has also raised doubts. (Cointelegraph)

UK legislators are thankfully urging much-needed caution in retail digital pound rollout

British legislators are, thankfully, advocating a much-needed cautious approach to the potential introduction of a retail digital pound. They emphasise the need to balance technological advancements with the multiple possible negative consequences, which include major privacy concerns, loss of financial freedom, government surveillance, the government limiting individuals’ financial access, and unwarranted use of user data by the government or Bank of England.?

The risks of a digital pound don't exist only in Black Mirror or other dystopian future horror stories; they're already here. China's digital currency electronic payments programme and its treatment of ethnic minorities by blocking access to finance is one such current example.?

The Treasury Select Committee advises the Bank of England and Treasury to rigorously evaluate the necessity of a digital pound, considering the associated costs and risks. As a preventive measure, the committee suggests setting lower initial limits on digital pound holdings to mitigate the risk of bank runs in unstable market conditions. This approach aims to prevent substantial shifts of deposits into digital wallets, which could lead to increased risk of bank failures and higher loan costs. The committee addresses privacy concerns by recommending stringent limitations on the use of data by the government or the Bank of England. Any legislation for a digital pound should specifically restrict data use to purposes already permitted for law enforcement, ensuring user privacy, and preventing undue surveillance. (Cointelegraph)

United Nations agency to up skill thousands of staff in?blockchain?tech to achieve sustainable development growth and financial freedom

The United Nations Development Programme (UNDP) has partnered with the Algorand Foundation to establish a blockchain academy in 2024. This initiative aims to educate UNDP's 22,000 staff in 170 countries on blockchain technology applications, including financial inclusion, supply chain transparency, asset tokenisation, and digital identity, with the ultimate aim of helping countries achieve sustainable development growth. (Cointelegraph)

Jack Dorsey aims to create anti-censorship Bitcoin mining pool with new startup

Bitcoin startup Mummolin raised $6.2 million in seed funding, with former Twitter co-founder and CEO Jack Dorsey as a notable contributor. The funding supports the launch of the decentralised mining pool, OCEAN. This non-custodial pool, unique for paying miners directly from block rewards, contrasts with traditional pools where a central entity controls reward distribution. Mummolin's co-founder, Mark Artymko, highlighted that OCEAN removes the risks of reward withholding, stating, "OCEAN’s non-custodial payouts directly to miners from the block reward remove this risk and the pool's undue influence over miners." What's important here isn't so much this specific startup mining pool so much as a growing industry awareness that centralisation isn't the way. The trend towards decentralisation, which has now started here in mining, is what is key. The crypto industry has been a key part of shaping and leading the growth of decentralisation.?(CoinDesk)

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