The United States Securities and Exchange Commission (SEC) has reportedly told blockchain infrastructure company Paxos that it plans to sue the firm for violations of investor protection laws alleging the Binance USD (BUSD) stablecoin is an unregistered security. Paxos is the creator and issuer of BUSD — a U.S. Dollar-collateralized stablecoin — since the firm struck a partnership with Binance in September 2019. It is the third largest stablecoin, with a market cap currently exceeding $16 billion. According to a Feb. 12 report in The Wall Street Journal citing people familiar with the matter, the SEC issued a Wells notice …

Crypto exchange Coinbase's executives are standing up for its crypto staking services, claiming it cannot be classified as a security, and threatening to bring the matter to the courts in the United States. Brian Armstrong, Coinbase CEO, posted on Twitter that the company will "defend this in court if needed." The move follows the agreement reached by crypto exchange Kraken with the Securities and Exchange Commission (SEC) on Feb. 10 to stop offering staking services or programs to clients in the country. According to the SEC, Kraken failed “to register the offer and sale of their crypto asset staking-as-a-service program,” …

What is monetary policy? Monetary policy refers to the actions taken by a central bank or monetary authority to manage the supply of money and interest rates in an economy, with the aim of promoting economic growth and stability. To affect the price and accessibility of credit, this may entail altering the money supply, setting interest rates or utilizing other instruments. The ultimate goal of monetary policy is to achieve and maintain a healthy economy. This usually involves balancing multiple objectives, such as: To ensure economic stability, lessen the effects of economic shocks and promote sustainable economic growth, central banks …

The Consumer Federation of California (CFC), a nonprofit advocacy organization working for consumer rights, sponsored a bill that seeks to license and regulate the activities of cryptocurrency exchanges. The legislation demanding regulatory oversight of crypto businesses — the Digital Financial Assets Law — was introduced by Assemblymember Timothy Grayson with the aim of protecting Californians from financial hardship and fostering responsible innovation. Grayson believes that licensure is the next natural step for the crypto industry, adding: “And it is equally clear that until we take that step, Californians will continue to be vulnerable to prevalent and preventable financial scams.” This …

Brazilian bank Banco do Brasil is offering a new and convenient option for taxpayers to settle their dues using cryptocurrencies. According to a statement published by Banco do Brasil on Feb. 11 it is now “possible” for Brazilian taxpayers to pay their tax bill with crypto, in a joint initiative with Brazilian-based crypto firm Bitfy. This initiative is available to Brazilian’s who have their crypto under the custody of Bitfy, who will act as a “collection partner” for the major Brazilian bank. It noted that besides the convenience it brings to customers, it makes it possible to “expand” the use …

El Salvador has been advised to exercise caution in expanding government exposure to Bitcoin (BTC) due to the “speculative nature” of crypto markets by the global monetary watchdog. A Feb. 10 statement from the International Monetary Fund (IMF) emphasized that Bitcoin’s risks in El Salvador have “not materialized” yet due to its “limited” use so far, after IMF staff visited the country last week. It was suggested that El Salvador address these risks as Bitcoin’s use “could grow” given it has been recognised as legal tender in the country since Sept. 2021. El Salvador was warned to re-evaluate its plan …

Kazakhstan, one of the biggest Bitcoin (BTC) mining hubs in the world, announced plans to introduce new crypto regulations aimed at reducing tax fraud and unlawful business operations. A new law signed by Kazakh President Kassym-Jomart Tokayev on Feb. 6 reinstated the nation’s stand against the unlawful mining operations and issuance of crypto assets. Out of the two distinct legislations, the first requires the secured digital assets issuers to have the government’s permission. Moreover, such issuers will be subject to monitoring in accordance with the existing law of the land — “On Combating the Legalization (Laundering) of Proceeds from Crime …

The joint provisional liquidators of FTX Digital Markets — the firm’s subsidiary in the Bahamas — has released a report on the company’s physical assets in the island nation. According to affidavit filed by a PricewaterhouseCoopers partner with the Bahamas’ supreme court on Feb. 8, FTX’s joint provisional liquidators, or JPLs, said the company had purchased 52 properties in the Bahamas, including units “in the name of individual employees or relatives of SBF, despite FTX Digital providing the funding”. These properties, which included housing for FTX employees and commercial office space, were worth roughly $255 million and purchased by an …

The parts that make up the cryptocurrency ecosystem are not all equal, United States Federal Reserve Board governor Christopher Waller told a conference audience on Feb. 10. He had clear preferences among the three elements of the ecosystem that he identified. Waller was hosted by the Global Interdependence Center at its “Digital Money, Decentralized Finance, and the Puzzle of Crypto” conference. He considered crypto assets, blockchain technology and trading technology, such as smart contracts and tokenization, separately. Waller focused on the broader applications of crypto technology. Research on applications of distributed ledger technology to “a wide range of data management …

Reactions were predictable depending on where you stand on crypto in general. Crypto advocates railed against regulators who are slowly asphyxiating this burgeoning industry, while skeptics celebrated crypto’s impending demise. The advocates have it right. Antagonistic regulators will force crypto into friendlier jurisdictions, which will reap the economic benefits. The skeptics have it right, too. This event, and much of those from last year, is killing crypto. Their apparent glee is misplaced, though. This is a good thing. Emboldened by the slew of blow-ups of crypto businesses in 2022, the SEC and the Commodities Futures Trading Commission have begun to …

The United States Securities and Exchange Commission (SEC) is ramping up pressure on the crypto sector. On Feb. 9, the SEC reached a $30 million settlement with Kraken over the centralized staking program offered to its users. The news of the crackdown sent Bitcoin (BTC) price to a 3-week low as investors became fearful of the regulatory enforcement. On the news, Ether's (ETH) price also corrected, cementing the token’s worst-performing day of 2023. While the overall crypto market was down after the SEC announcement, bright spots arose with decentralized liquid staking tokens Lido (LDO) and Rocketpool (RPL) and Frax (FXS) …

Two members of the United States House Financial Services Committee are calling on Securities and Exchange Commission chair Gary Gensler “regarding the timing of the charges filed against FTX founder Sam Bankman-Fried” based on his scheduled appearance at a hearing. In a Feb. 10 notice, committee chair Patrick McHenry and Representative Bill Huizenga, who chairs the Oversight and Investigations Subcommittee, said the timing of Bankman-Fried’s charges and arrest in the Bahamas raised “serious questions about the SEC’s process and cooperation with the Department of Justice”. The two lawmakers called on Gensler to provide records and communications from the SEC’s Division …