US SEC Approves Blockstack Token Offering Under Regulation A+

The United States Securities and Exchange Commission (SEC) has given blockchain-based startup Blockstack the go-ahead to run a $28 million public token offering under Regulation A+, according to a report by The Wall Street Journal (WSJ) on June 10. Blockstack will reportedly launch its token offering online tomorrow, July 11. While other firms have previously taken advantage of Regulation A+ funding, this marks the first time that investors will receive a token, rather than shares in the company. Regulation A+ is an initial public offering (IPO) alternative geared towards startups…

Regulators SEC & FINRA Explain Crypto Custodian Regulation and Approval

The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have explained in a joint statement that there are a number of questions that need to be answered before crypto companies will be approved as broker-dealers. The statement issued on Monday covered a number of different factors that affect the approval process of a broker-dealer application by a company that deals in digital assets, including custody and whether the assets are treated as securities under the Securities Investor Protection Act (SIPA) of 1970. Investor protection and…

US SEC and FINRA Issue Statement on Crypto Custody Issues

The United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) outlined regulatory compliance issues for cryptocurrency custodians in an announcement on July 8. According to the joint statement, the organizations have yet to discover a set of circumstances in which a crypto custodian could comply with the SEC’s Customer Protection Rule, which is described as follows: “Put simply, the Customer Protection Rule requires broker-dealers to safeguard customer assets and to keep customer assets separate from the firm’s assets, thus increasing the likelihood that customers’ securities…

 SEC Accepting Public Comments to Decide the Future of Bitcoin and T-Bills-Backed ETF

The proposed rule change will allow Wilshire Phoenix Fund to list shares of ETF on NYSE Arca. SEC has declared that the public can comment on the aforementioned matter within 21 days’ time period. After getting the public comments SEC can make an initial ruling within 45 days, and it can extend up to 90 days, although the proposal document needs first to be issued in Federal Register before SEC starts getting inputs from the public. Wilshire Phoenix and NYSE Arca applied for the rule change proposal last month, hoping…

Live Streaming Startup YouNow Files SEC Filing for Compliant Token Earning for App Users

Live streaming startup YouNow, which created the decentralized digital video ecosystem Props in 2017 and is backed by Union Square Ventures, has filed a public offering with the United States Securities and Exchange Commission (SEC) for its Props token. The development was revealed in a press release shared with Cointelegraph on June 19. The YouNow app — which reportedly counts 47 million registered users — has submitted its application as a Regulation A+ filing with the SEC. Pending approval, the initiative could see accredited and retail users alike globally earning…

Crypto Tidbits: SEC Still Wary of Bitcoin ETF, Facebook Crypto Inbound, Binance to Launch Stablecoin

Another week, another round of Crypto Tidbits. While price action wasn’t all too hot, with Bitcoin losing its strides above $8,000 to tap $7,450, the underlying industry still saw a flurry of developments. Some positive, some negative. On the positive, Apple quietly added a Bitcoin symbol to its developer kit repertoire; Facebook is nearing the launch of its digital asset, slated to be a massive on-ramp to true cryptocurrencies; and a report revealed that much of the crypto asset mining industry is backed by renewable energies. On the other side…

US SEC Adds Fraud to List of Charges Against ‘Crypto’ Firm Longfin

The United States Securities and Exchange Commission (SEC) has filed fraud charges against supposed cryptocurrency firm Longfin Corp. and its CEO Venkata S. Meenavalli, according to a press release on June 5. Longfin saw a massive jump in its share price in 2017 when it claimed that it had redirected its business model toward blockchain technology. The associate director of the Division of Enforcement, Anita B. Bandy, summarized the allegations as such: “In our complaint against Longfin and Meenavalli and our amended complaint against Altahawi, we allege a multi-pronged fraud…

SEC Suggests Ethereum is Usable Currency in Dramatic Kik Lawsuit

By CCN: Ethereum’s status as a legitimate transactional currency was confirmed once again this week – by none other than the Securities and Exchange Commission. The SEC’s recent lawsuit against Kik (KIN) details the particulars of the KIN token sale – the public phase of which was carried out against ETH, as opposed to the U.S dollar. Throughout the official court document, the SEC appears to accept Ethereum as legitimate legal tender. This adds to similar noises made by the regulatory body in 2018, when SEC officials said Bitcoin and…

SEC Sues Kik for Conducting Allegedly Unregistered $100 Million ICO in 2017

The United States Securities and Exchange Commission (SEC) has sued Canadian startup Kik for an unregistered $100 million token offering, the regulator officially announced on June 4. According to the SEC’s complaint, Kik violated the registration requirements of Section 5 of the Securities Act of 1933. The agency is seeking a permanent injunction, disgorgement plus interest, and a penalty. Specifically, the securities watchdog alleged that in late 2017, Kik raised $100 million through a digital token sale that was not compliant with U.S. securities laws, as it had not registered…

SEC Commissioner Hester Peirce Encourages Less Caution Toward ETF Innovation

Hester Peirce, commissioner at the United States securities regulator, has urged for a less cautious approach towards innovation in the exchange-traded funds (ETFs) space on the regulator’s part. The Financial Times reported on her remarks on June 2. Per the report, the Security and Exchange Commission’s (SEC) Peirce called on her co-commissioners to allow for innovation in the ETF space by lessening their caution. She reportedly commented on the SEC’s approach towards this category of highly regulated financial derivatives, noting that the SEC is “still smothering ETFs with personalised attention…