Tag: SEC

DEBT Box urges judge to toss suit as SEC got case ‘badly wrong’

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DEBT Box and other defendants in a Securities and Exchange Commission lawsuit want the case tossed after the court found the agency lied to secure a temporary restraining order against them. “The SEC got this case wrong. Badly wrong,” lawyers for Digital Licensing Inc., which does business as DEBT Box, told Utah federal court Judge Robert Shelby in a Dec. 4 motion to dismiss. “The SEC should not be allowed to continue to spin a false narrative to avoid dismissal.” The SEC won a temporary restraining order to freeze DEBT…

Elon Musk’s xAI files with SEC for private sale of $1B in unregistered securities

Elon Musk’s X-linked AI modeler xAI has an agreement for the private sale of $865.3 million in unregistered equity securities, according to a filing with the United States Securities and Exchange Commission (SEC) made on Dec. 5. xAI filed the SEC’s Form D to allow it to engage in the private sale of securities without registration. The form is used to comply with Regulation D of the Securities Act of 1933, which provides exemptions to the standard rules. On the form, Musk is listed as the executive officer and director…

SEC pushes deadline to decide on Grayscale spot Ethereum ETF

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The United States Securities and Exchange Commission has delayed its decision on whether to approve or disapprove of a spot Ether (ETH) exchange-traded fund, or ETF, offering from asset manager Grayscale. In a Dec. 5 notice, the SEC said it would designate a longer period on whether to approve or disapprove of a proposed rule change that would allow NYSE Arca to list and trade shares of the Grayscale Ethereum Trust. The commission’s announcement was one of the first following an appellate court ordering the SEC to review Grayscale’s Bitcoin…

Jury in Terraform Labs case shouldn’t decide whether crypto is a security — SEC

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Lawyers representing the United States Securities and Exchange Commission requested the judge in its civil case against Terraform Labs and co-founder Do Kwon determine whether certain crypto assets are securities rather than a jury. In a Dec. 4 filing in U.S. District Court for the Southern District of New York, the SEC argued that the matter of cryptocurrencies as securities under the commission’s guidelines was a “legal question to be determined [by] the Court, not a factual question for the jury.” According to the SEC, sending the question of whether…

BlackRock and Bitwise Update Spot Bitcoin ETF Applications with SEC

Market analysts interpret these recent filings as indications of the ongoing collaborative efforts between the SEC and major issuers to navigate the regulatory landscape. In a recent development, asset managers BlackRock Inc (NYSE: BLK) and Bitwise have submitted amended filings to the US Securities and Exchange Commission (SEC) for their proposed spot Bitcoin (BTC) Exchange-Traded Funds (ETFs). BlackRock Inc’s Bitcoin ETF Strategic Moves The revised documents, now accessible on the SEC website, point to ongoing discussions between the SEC and major market players regarding the approval of a spot Bitcoin…

BlackRock received $100K seed funds for Bitcoin ETF — SEC filing

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The world’s largest asset manager, BlackRock, received $100,000 in seed funding from an unknown investor for its spot Bitcoin (BTC) exchange-traded fund (ETF) in October 2023, according to its latest United States Securities and Exchange Commission (SEC) filing. The SEC filing revealed that the investor agreed to purchase $100,000 in shares on October 27, 2023, in exchange for 4,000 shares at $25.00 per share price. The seed funding allows an ETF to fund the creation of underlying shares that can be offered and traded in the open market. The latest filing…

SEC likely to prioritize ‘cash create’ spot Bitcoin ETFs

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A Senior Bloomberg ETF analyst speculated that the Securities and Exchange Commission favors a particular redemption model and that could be a factor for which applications get approved. The U.S. Securities and Exchange Commission (SEC) may choose to first approve spot Bitcoin ETFs with a cash create redemption structure, according to ETF expert Eric Balchunas who said that such a decision remained unconfirmed by America’s securities regulator. Cash create differs from the alternative “in-kind” option since it requires issuers to hold the dollar equivalent of every Bitcoin (BTC) offered in…

SEC in Discussion with Grayscale and Seven Other Spot Bitcoin ETF Applicants

SEC’s discussion with top applicants of spot Bitcoin ETF continue as BTC price has rallied past $41,532 in a fresh surge. The US Securities and Exchange Commission (SEC) has revealed recent meetings with various asset managers to discuss their proposed spot Bitcoin exchange-traded funds (ETFs). On November 29, the SEC’s Division of Trading and Markets members engaged in discussions with several Grayscale employees, including CEO Michael Sonnenshein, and representatives from the law firm Davis Polk. This meeting followed three previous sessions with Grayscale, dating back to 2022, with the latest…

SEC faces sanctions threat as Judge questions DEBT Box case accuracy

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United States District Judge Robert Shelby has cautioned the Securities and Exchange Commission (SEC) lawyers, hinting at possible sanctions due to purportedly deceptive statements in a legal action against Digital Licensing Inc., also recognized as DEBT Box, a crypto company. Lodged in the federal court of Utah, the SEC’s legal action alleged that DEBT Box deceived investors by around $50 million via the vending of unregistered securities known as “node licenses.” Judge Shelby’s decision revealed notable discrepancies in the SEC’s case. Initially, the SEC, led by attorney Michael Welsh, had…