SEC

SEC wants Binance guilt admission added to own case

Binance said the SEC hasn’t demonstrated that the resolutions reached with the DOJ are pertinent to the regulator’s “faulty claims” against Binance Holdings and former CEO Changpeng Zhao.

Binance Holdings and its former CEO, Changpeng Zhao, have reacted to a move by the United States Securities and Exchange Commission (SEC) to include Binance’s admission of guilt to the Department of Justice (DOJ) in its own legal proceedings.

In a Dec. 12 filing submitted to the U.S. District Court for the District of Columbia, Binance insisted the SEC’s attempt to include the $4.3 billion guilty plea and settlement agreement with the DOJ in the continuing case was procedurally incorrect and should not be allowed.

The ongoing Binance-SEC legal case began on June 5, 2023, when the agency accused the company of 13 securities law violations, including that Zhao and Binance managed customer assets on Binance.US and mixed or redirected customer assets.

SEC serves suit to evasive Richard Heart in Finland, but not in person

The suit was served via an alternate method, as process servers were unsuccessful in contacting Richard Heart in person for months.

The United States Securities and Exchange Commission (SEC) said it served its lawsuit to Hex (HEX) founder Richard Schueler, also known as Richard Heart, at his house in Finland’s capital Helsinki.

In a Dec. 11 court filing in the U.S. District Court for the Eastern District of New York, the SEC said it served Heart through a substitute service on Oct. 31, which is an alternative method for when a suit can’t be personally delivered to the defendant due to difficulties in locating them.

The process server said they made several failed attempts over nearly seven weeks starting on Sept. 13 to personally serve Heart through calls, texts, letters, and attempts to reach him in person at his Helsinki residence.

DOJ unveils extensive monitorship over Binance operations

Binance’s new compliance obligations include cooperation to grant U.S. authorities access to all documents, records and resources upon request.

Binance compliance commitments with the United States Department of Justice (DOJ) were unsealed on Dec. 8, revealing a significant government oversight of the crypto exchange operation and business activities.

In an analysis shared on X (formerly Twitter), John Reed Stark, a former Securities and Exchange Commission (SEC) official, classified the “exhaustive list” of Binance’s new compliance commitments as a “consulting firm’s wish list” that will likely shut down the platform.

Binance’s new obligations are described in an 11-page document and include cooperation to grant authorities access to documents, records and resources at their request, including access to information related to its “former employees, agents, intermediaries, consultants, representatives, distributors, licenses, contractors, suppliers, and joint venture partners,” noted Stark.

VanEck files 5th amendment to spot Bitcoin ETF under ‘HODL’

Analysts say the ticker code could help avoid negative attention on adviser statements.

Asset manager VanEck filed a fifth amended application for a spot Bitcoin (BTC) exchange-traded fund (ETF) on Dec. 8.

According to the regulator’s database, the amended filing to the S-1 Form with the United States Securities and Exchange Commission (SEC) highlights updates to the VanEck Bitcoin Trust. A spot Bitcoin ETF is an investment vehicle that lets people buy shares in a fund that tracks the price of Bitcoin.

The VanEck ETF is now expected to be listed under “HODL,” which is a misspelling of “hold” or an acronym for “hold on for dear life.” Bitcoiners use the phrase to describe a strategy of buying and never selling the digital asset.

Why is the crypto market up today?

The crypto market is up today as U.S. macroeconomic data shows a strong economy and institutional inflows into crypto continue to rise.

The crypto market is up today as Bitcoin (BTC), Solana (SOL), Cardano (ADA), Chainlink (LINK) and numerous altcoins rallied higher. The price breakout resulted in the total market cap reaching a year-to-date high of $1.59 trillion on Dec. 8.

Let’s examine three major factors influencing today’s crypto market rally.

The crypto market’s price gains in the past 24-hours follow the U.S. Bureau of Labor Statistics employment report. The report beat expectations, with the unemployment rate recording lower than the forecast of 3.9% by 0.2%.

Bitcoin options data shows whales betting big — Will $50K BTC come in January?

Institutional investor interest soars as Bitcoin options open interest hits record high.

Bitcoin (BTC) options open interest reached an unprecedented milestone, surging to a staggering $20.5 billion on Dec. 7. This signifies the active involvement of institutional investors in the cryptocurrency space. Unlike futures contracts, BTC options have predetermined expiration prices, offering valuable insights into traders’ expectations and market sentiment.

At the forefront of the Bitcoin options market stands Deribit, boasting a 90% market share. The exchange currently holds a substantial $2.05 billion open interest for options expiring on Jan. 26. However, many of these bets may lose their value as the deadline approaches.

Nonetheless, with the prospect of a spot exchange-traded fund (ETF) gaining regulatory approval, previously sidelined bullish bets are reentering the playing field.

SEC discussing ‘key technical details’ with spot crypto ETF applicants: Report

In November, the commission separately met with representatives of BlackRock and Grayscale to discuss their spot crypto exchange-traded funds.

Officials with the United States Securities and Exchange Commission are reportedly discussing aspects of Bitcoin (BTC) exchange-traded funds, or ETFs, proposed by asset managers.

According to a Dec. 7 Reuters report, industry insiders said the SEC and certain asset managers were discussing “key technical details” related to U.S. exchanges listing shares of a spot Bitcoin ETF. To date, the commission has never given the green light to any spot cryptocurrency exchange-traded product, instead postponing decisions on applications for the maximum allowable time.

Memos released by the SEC in November showed the commission separately met with representatives of BlackRock and Grayscale. Both asset managers and Hashdex, ARK 21Shares, Invesco Galaxy, VanEck and Fidelity have filed for spot BTC or Ether (ETH) ETF listings.

Why is XRP price up today?

XRP’s price has gained over 4.5% in the past 24 hours amid speculations of Ripple’s reduced settlement costs to the U.S. SEC.

The price of XRP (XRP) is up today, rising nearly 4.5% in the last 24 hours to a three-week high of $0.65. In result, it has outperformed the broader crypto market, whose returns in the last 24 hours came to be about 1%.

XRP’s price gains in the last 24 hours come amid anticipations about Ripple reducing its potential settlement costs in its pending lawsuit against the U.S. Securities and Exchange Commission (SEC).

Notably, the SEC and Ripple remain in a remedies-related discovery process over the latter’s $770 million worth of XRP sales to institution investors. Ripple aims to reduce potential settlement costs by more than 50%, citing the Morrison vs. National Australia Bank case.

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

“Spicy” AI chatbot Grok hasn’t been seen by the public yet, but it’ll be worth plenty after this securities issue.

Elon Musk’s X-linked artificial intelligence 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 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 of the business.

The xAI Form D further clarifies that the securities will be sold to accredited investors with restrictions on their resale under Rule 506(b). The form also indicated that $134.7 million in such securities have already been sold, with the first sale taking place on Nov. 29. Thus, the company is seeking to raise $1 billion.

SEC pushes deadline to decide on Grayscale spot Ether ETF

The commission said it will have until January 2024 to reach a decision on the spot Ether investment vehicle or institute proceedings to extend the deadline again.

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 (BTC) ETF offering in October.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” said the SEC. “Accordingly, the Commission […] designates January 25, 2024, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”