Author: Max Bauer
The U.S. Supreme Court dealt a blow to Binance, the world’s largest cryptocurrency exchange, on Monday by refusing to hear its appeal in a class action lawsuit brought by investors. The investors allege that Binance illegally sold unregistered tokens that subsequently plummeted in value. The court’s decision leaves in place a March 2024 ruling by the 2nd U.S. Circuit Court of Appeals in Manhattan, which determined that U.S. securities laws could apply to Binance despite the exchange not being a U.S.-based company. The 2nd Circuit reasoned that because token purchases became irrevocable in the United States once payment was processed,…
Despite a recent CAD $25 million (USD $17.4 million) investment in the Solana ecosystem by Sol Strategies, CEO Leah Wald believes a Solana ETF (exchange-traded fund) is unlikely to receive US regulatory approval anytime soon. This statement comes on the heels of the firm’s announcement earlier this week regarding their significant investment. Wald, speaking ahead of the new year, highlighted Sol Strategies’ focus on advancing its business strategy. While expressing strong optimism for the Solana ecosystem, driven by observed developer activity and community enthusiasm, she remains cautious about the prospects of a US-based Solana ETF. “I think there’s quite a…
South Korean crypto entrepreneur Kwon Do-hyeong is set to stand trial in the United States on January 26, 2024, on charges of orchestrating a multi-year fraud scheme related to the collapse of Terraform Labs’ cryptocurrencies. According to a Bloomberg report, the trial date was set by District Judge Paul Engelmayer in New York following Kwon’s extradition from Montenegro in late December 2023. Kwon, co-founder of Terraform Labs, has pleaded not guilty to the charges, which include commodities fraud, securities fraud, wire fraud, and money laundering conspiracy. The indictment alleges that Kwon defrauded investors between 2018 and 2022, culminating in the…
Outgoing SEC Chair Gary Gensler, in a recent Bloomberg Markets interview with David Gura, reflected on his tenure and addressed criticisms while outlining his views on the future of the crypto market. With less than two weeks remaining before his January 20, 2025 departure, Gensler defended his agency’s actions against attacks from prominent figures, including the president-elect and Elon Musk, emphasizing the SEC’s focus on protecting everyday investors. Gensler acknowledged the “Wild West” characterization of the crypto market he made upon entering office and highlighted the SEC’s enforcement efforts. He noted that the agency brought roughly 100 enforcement actions related…
Bitcoin, the world’s leading cryptocurrency, has retreated to $95,000, dragging many altcoins down with it, with some experiencing losses of 20-30%. Surprisingly positive economic data from the US has triggered a wave of fear across the crypto market. What’s behind this sudden panic, and what does the future hold for Bitcoin, Ethereum, and other altcoins? Strong Economic News Spells Trouble for Crypto The recent release of key US labor market data painted a picture of robust economic health: While positive economic news is generally welcomed, it presents a challenge for risk assets like Bitcoin and altcoins. A strong economy and…
In a significant development in the ongoing legal battle between Coinbase and the Securities and Exchange Commission (SEC), Coinbase Chief Legal Officer Paul Grewal announced that the court has granted their motion for an interlocutory appeal. This decision effectively pauses the current district court proceedings and allows Coinbase to take its case to the Second Circuit Court of Appeals. Grewal shared the news via a social media post, stating, “Over the strenuous objection of SEC, Judge Failla has GRANTED our motion for leave to pursue an interlocutory appeal and STAYED the district court litigation. We appreciate the Court’s careful consideration.…
Former President Donald Trump’s trade policies targeting China with increased tariffs could inadvertently bolster Bitcoin, according to several market analysts. The pressure on the Chinese economy, evidenced by the yuan hitting a 16-month low on Monday, is expected to drive capital outflows, potentially benefiting the cryptocurrency market. David Brickell, head of international distribution at FRNT Financial, points to a precedent: “When China devalued its currency in 2015, Bitcoin promptly traded over three times higher.” He argues that a weakening yuan will accelerate capital flight from China, with Bitcoin becoming a prime destination due to existing capital controls restricting traditional channels.…
Despite Bitcoin’s recent price decline, cryptocurrency analytics firm Alphractal is holding back from purchasing, citing several key concerns in a statement released today. The firm argues that current market conditions do not justify entering a long position, even with the potential for missing out on short-term gains. Alphractal’s analysis centers around three primary arguments: the limited impact of ETF inflows, premature bullish sentiment, and divergent whale behavior compared to previous market cycles. ETF Inflows Not a Reliable Indicator: The firm points out that Exchange Traded Fund (ETF) inflows alone don’t necessarily translate into sustained price appreciation. They cite the example…
Bitcoin’s rise continues, recently touching $100,000, and Anthony Pompliano, founder and CEO of Professional Capital Management, argues that its future success is decoupled from political influence. In a recent interview, Pompliano posited that Bitcoin is becoming the new benchmark for investors, potentially eclipsing the S&P 500. Pompliano highlighted the limitations of the S&P 500, noting its restricted trading hours compared to Bitcoin’s 24/7 availability. He emphasized Bitcoin’s large and liquid market, making it highly sensitive to global liquidity shifts. Crucially, Pompliano pointed to a generational shift, with younger investors increasingly using Bitcoin as their benchmark, adhering to a “beat Bitcoin…
Michael S. Barr, the Federal Reserve’s Vice Chair for Supervision, will resign from his post on February 28, 2025, or earlier if a successor is confirmed, the Federal Reserve Board announced Monday. Barr, considered a key figure in the regulatory approach towards cryptocurrency within the banking sector, will retain his position as a governor on the Federal Reserve Board. Barr’s resignation letter was submitted to President Joseph R. Biden. His departure comes after a tenure marked by increased scrutiny of banks and their interaction with digital assets. Some industry observers have linked Barr’s stringent oversight to the difficulties banks have…