Coinbase > SEC < Beba 🤼♀️
SEC to proceed with Coinbase lawsuit. Backpack startup sues SEC over crypto airdrop. Fidelity applies for Ethereum ETF. Over $1 billion of US Treasuries on blockchains. Larry Fink confident about ETF.
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Coinbase just lost a round in its legal brawl with the SEC.
But wait, the fight is far from over.
A New York judge has mostly sided with the SEC and ruled that the case will go to trial.
SEC Mostly Wins: The judge ruled that the SEC has a strong case for accusing Coinbase of acting as an unregistered broker, exchange, and clearinghouse.
Staking in Hot Water: The SEC also scored points on its claim that Coinbase's staking program involves unregistered securities.
Wallet Wins for Coinbase: The only bright spot for Coinbase is the court's dismissal of the SEC's claim that their wallet service acts as an unregistered broker.
This is a huge deal for the entire crypto industry
The SEC wants crypto firms to play by the same rules as stocks and bonds.
They sued Coinbase for acting like a stock exchange without proper registration.
This case could set a major precedent for how crypto is regulated in the US.
Coinbase argues these crypto assets aren't securities and shouldn't be regulated the same way.
Coinbase CEO Brian Armstrong isn't backing down though.
They're "prepared."
The bright side? The wallet triumph.
Backpack Startup Sues SEC Over Crypto Airdrop
The DeFi Education Fund and Beba have filed a lawsuit against the SEC to challenge the classification of airdrops as securities.
The lawsuit aims to establish that airdrops, specifically Beba's BEBA token airdrop, do not qualify as securities offerings.
Beba asserts that the distribution of its tokens for free does not constitute a securities transaction, highlighting the absence of monetary investment, shared enterprise, reasonable expectation of profit, or contractual arrangement.
Block That Quote 🎙️
Tornado Cash developer Alexey Pertsev.
“lol”
That was Pertsev's reaction to the massive Ronnin hack.
The mind behind Tornado Cash is in the hot seat, potentially facing 64 months in prison over the crypto mixer's role in laundering funds.
"I cannot take full responsibility, just me, for what is happening. I don't believe it is fair."
Pertsev explains his "lol" as surprise, not amusement, expressing frustration over the criminal use of his creation.
Trial Highlights
Prosecutors are questioning his attitude towards criminal misuse of Tornado Cash.
Defense Stance: Pertsev points to the autonomous nature of smart contracts, challenging the idea that he is solely responsible for the mixer's exploitation.
Fidelity Files Spot Ethereum ETF With Staking
Fidelity just threw down the gauntlet with the SEC.
Here's the deal:
Fidelity wants to offer an ETF that tracks Ethereum's price (like a Bitcoin ETF, but for Ethereum).
The twist? This ETF will also stake a portion of its Ethereum holdings. Staking lets you earn rewards for holding crypto, but it's not without risks.
Easier access to Ethereum and staking rewards for investors, potentially boosting Ethereum's value.
In the Numbers 🔢
$1 billion
Over $1 billion worth of US Treasuries are now living on blockchains like Ethereum and Polygon.
This revolution is thanks, in part, to BlackRock, a major investment firm, launching its first tokenised fund: BUIDL.
Tokenised Treasuries offer several potential benefits
Faster settlements
24/7 access
Potential for higher returns compared to stablecoin yields.
BlackRock's BUIDL fund isn't alone. It joins 16 other tokenised government securities funds, with Franklin Templeton's FOBXX currently holding the top spot.
BlackRock boss bullish on ETFs
BlackRock CEO Larry Fink expressed surprise at the massive investor interest in their new Bitcoin ETF (iShares Bitcoin Trust) and is now "very bullish" on the cryptocurrency's future.
Despite the SEC mulling over classifying Ether as a security, Fink believes an Ether ETF is still a possibility.
Fink is impressed by the "retail demand," exceeding even their optimistic prediction.
"That surprised me how much [bitcoin has] gone up... We're creating now a market that has more liquidity, more transparency," he said.
The Surfer 🏄
YouTuber Logan Paul defends CryptoZoo project in new documentary. Paul claims it was not a scam but a project he couldn't handle at the time. Admits that people lost money due to the exposure he brought to the project.
Hong Kong finance firm VSFG aims to launch a spot bitcoin ETF as early as May. The firm has submitted its application for the ETF and is in active discussions with the Securities and Futures Commission (SFC).
Indonesia is to implement a regulatory sandbox for crypto assets by early next year. Sandbox will help prevent fraudulent investments and test upcoming innovations.
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