Tag: SEC

Hinman documents suggest SEC is the wrong agency to govern digital assets, crypto lawyer says

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On June 13, the long-awaited Hinman documents were finally unsealed and released to the public. The unveiled documents offer valuable insights into a significant speech delivered in 2018 by Bill Hinman, the former director of the United States Securities and Exchange Commission’s (SEC) corporation finance division.  In this 2018 speech, Hinman shared his perspective that Ether (ETH), one of the largest cryptocurrencies, should not be categorized as a security. The Hinman documents consist of internal communications within the SEC, providing a comprehensive view of the agency’s discussions and considerations leading…

SEC hears from Blockchain Assoc., House Republicans on ‘exchange’ definition proposal

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The United States Securities and Exchange Commission (SEC) extended the comments period for its proposal to amend Rule 3b-16 of the Securities Exchange Act of 1934 ended June 13. The Blockchain Association and Republican members of the House of Representatives Committee on Financial Services filed last-minute comments. The amendments proposal, which runs for hundreds of pages, was released in January 2022. It did not mention digital assets. Another lengthy document was released when the comment period was reopened. It did address digital asset platforms. The amendments could profoundly impact the…

US lawmaker invokes SEC lawsuits in considering crypto regulatory framework

Members of the United States House Financial Services Committees met to discuss clarity for the digital asset ecosystem, with some invoking recent legal action from the Securities and Exchange Commission (SEC) against crypto firms. In a June 13 hearing of the committee, ranking member Maxine Waters said Democrats were taking a “serious and thoughtful look” at a proposed framework introduced by Republicans on the regulation of digital assets. Committee chair Patrick McHenry said he expected bipartisan input on a draft bill, with markups following a congressional recess in July. Waters…

SEC and Binance seek compromise on US assets freeze

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The United States Securities and Exchange Commission and BAM Trading (Binance’s U.S. arm) recently filed a request for a consent order that would ease some of the restrictions from a previous SEC request to freeze the company’s assets.  The proposed new consent order would offer more assurances for the SEC and allow BAM Trading to make payroll and other financial commitments. Per the document: “BAM Trading and BAM Management may continue to make payments for the purchase of goods and services, salaries for BAM Trading and BAM Management personnel, including…

SEC lawsuit sheds light on Coinbase’s management

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The lawsuit brought by the United States Securities and Exchange Commission (SEC) against Coinbase Global on June 6 is raising questions about the crypto exchange’s approach to managing the ongoing crypto crackdown. In a recent interview with Cointelegraph, venture capitalist Kevin O’Leary criticized Coinbase’s strategy to address the current regulatory environment. “Its market cap was decimated [by the SEC suit], and the management there seems to want to keep taking on the SEC over and over and over again,” said the serial entrepreneur in reference to the 17.4% drop in Coinbase’s…

Unfazed by SEC tumult, top banks work to make blockchains interoperable

Amid all the tumult in the crypto world, some of the world’s largest banks have been quietly reflecting on ways to bring digital assets to institutional customers. And last week, a plan emerged. A collaboration, under the guidance of the Society for Worldwide Interbank Financial Telecommunication, better known as Swift — the global financial communication and payments network — will soon be testing ways for permissioned bank-owned blockchains to not only talk to each other, but also communicate with public blockchains like Ethereum. Participants in this global experiment include more…

SEC concerned over ‘Ether is not a security’ statement

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Newly released documents showing edits that were made to a 2018 speech given by former director of the Security and Exchange Commission’s (SEC) corporate finance division Bill Hinman suggest the editors were concerned his statement might undermine the idea that Ether (ETH) is a security.  This could risk locking the agency into a position it would find hard to change at a later date, the SEC comments warn. “Even with the caveats in the sentence, it seems that it would be difficult for the agency to take a different position…

Hinman’s 2018 Speech on Ether Needed More Clarity, SEC Officials Said at the Time, Emails Released by Ripple Show

“As written, the language remains vague as to whether ETH is a security. If you want to make an affirmative statement that it is not a security, the language could be stronger (i.e., just say it). If you don’t want to take an affirmative stance, we suggest using language similar to what you used for Bitcoin re. the disclosure regime to make it more consistent,” wrote former SEC Director of Trading and Markets Brett Redfearn on June 12, 2018. Source