In the latest [SEC vs Ripple](/news/article/xrp-court-case-update) news, the Blockchain Association has come out in favour of Ripple Labs as it continues its legal battle with the Securities and Exchange Commission. The US crypto advocacy group argues that the case is critical to the future of the crypto sector.

## SEC vs Ripple - Basis of Case

In a 28 October article, the advocacy organization said it would "stand" with the American crypto economy by filing a legal brief in the SEC enforcement case against Ripple. 

The SEC said [nearly two years ago](https://www.sec.gov/news/press-release/2020-338) that it would sue Ripple, former CEO Christian Larsen, and current CEO Brad Garlinghouse for allegedly generating $1.3 billion through unregistered securities transactions using XRP. 

This case is just one in a long series of SEC efforts to regulate through enforcement," the organisation stated, highlighting its efforts to entrench and legitimise its broad interpretation of the Howey test.

The [Howey Test](https://www.forbes.com/sites/roslynlayton/2022/10/30/crypto-law-experts-suggest-sec-likely-to-lose-key-case-and-discredit-howey-test/) decides what qualifies as an investment contract and hence what is subject to US securities laws. 

## Why is Blockchain Association involved in SEC vs Ripple?

The Blockchain Association explained in its brief why it believes the SEC and Chairman Gary Gensler's views on securities rules might have disastrous implications for the crypto sector. 

It says that [blockchain technologies](/news/article/moonriver-staking) have several applications in the cryptocurrency business; tokens may be used to pay for products and services, transfer intellectual property rights, maintain inventories, and serve a specific role in a particular blockchain project. 

Applying securities rules to such tokens, whether or not via the lens of the Howey test, would severely limit their ability to function. 

The group further alleges that the regulatory body is ignoring clear Supreme Court and Second Circuit decisions establishing that transactions offshore are outside its authority.

## Blockchain Association hopes in SEC vs Ripple case

According to the Blockchain Association, the lawsuit allows the industry to push back against the "SEC's [regulation](/news/article/uk-crypto-tax-regulations) by enforcement agenda" and perhaps open the way to upgraded industry standards.

SEC vs Ripple News: The Latest

[Kim Kardashian has been fined $1.26 million](https://www.forbes.com/sites/qai/2022/10/03/kim-kardashian-fined-for-cryptocurrency-promotion-heres-what-it-means-for-crypto/?sh=d7cef2e39356) by the US Securities and Exchange Commission (SEC) for not disclosing that she received payment for an ad about crypto token EthereumMax on her social media accounts.

This might indicate that the SEC plans to impose more restrictions on the cryptocurrency industry.
Unexpectedly, Kim Kardashian was penalised by the SEC for allegedly participating in this cryptocurrency "pump and dump" scheme. 

## Kim Kardashian barred from endorsing cryptocurrencies for three years

This became a legal issue because the Kim Kardashian crypto ad was a planned marketing strategy. One more surprising factor is that the lengthy list of influencers endorsing cryptocurrencies has been condensed.

Since it may cause additional problems for other celebrities who have supported cryptocurrency or wish to do so in the future, this story has attracted much media attention.

The $1.26 million amount accounts for the $250,000 she received for the marketing and interest and a $1 million penalty. She also consented to refrain from promoting cryptocurrency assets for three years while helping with the current inquiry. 

The crypto industry is facing a strong bear market. There is a fear that we could see more legal disputes and litigation in the future, ultimately leading to more blood baths in the crypto space.

## A long list of celebrities has faced similar controversies

[Elon Musk has been sued for $258 billion](/news/article/elon-musk-dogecoin) over allegations that he created a pyramid scheme to market Dogecoin. Also, Floyd Mayweather Jr. and DJ Khaled have been charged with promoting initial coin offerings (ICOs) without letting their followers know they had been paid to do so.

## What does this controversy mean for the Bitcoin and crypto industry?

The SEC released a video advising the public to exercise caution when following investment advice from well-known people and social media influencers.

Other celebrities and influencers could also avoid advertising ICOs due to the Kim Kardashian crypto ad controversy, which could somewhat mean lower exposure to new coins.

However, this news doesn't mean anything to Bitcoin prices and other crypto coins. But we could soon see more [regulations from the SEC](/news/article/us-sec-regulation).


Kim Kardashian Crypto Ad Controversy

It might seem we’ve not heard the last from the Do Kwon Terra debacle, as Interpol has issued a red notice for the arrest of the embattled founder of Terraform labs.

The South Korean security authority has been investigating the case; however, the embattled Terra founder has not been cooperating and is believed to be on the run.

With Interpol's red notice, security agencies worldwide are requested to start a search and arrest him.

## Do Kwon's statement on the Terra collapse investigation

Do Kwon, in a series of tweets via his official Twitter handle ([@stablekwon](https://twitter.com/stablekwon/status/1571197156907679745)), has denied not cooperating with the security agencies. He further claimed he’s not on the run as speculated in the media.

[Do Kwon's Terra labs collapsed earlier this year](/news/article/terra-luna-collapse), which led to the loss of investors' money estimated to be around $40 billion.

Many investors have lost their money through investment in LUNA and can’t wait to get clarity on the investigation presently being carried out. This case is one that the whole crypto community is observing with keen interest.

## Legal Issues in the cryptocurrency industry

There seem to be a lot of legal issues in the cryptocurrency industry, and Do Kwon Terra issues is not the only one taking centre stage.

Ripple labs, the parent company of Ripple, is presently embroiled in [legal issues with SEC](/news/article/xrp-court-case-update) in what seems to be the longest court case in the cryptocurrency industry's history.

A [Dogecoin](/coins/doge) investor also [sued Tesla and SpaceX CEO Elon Musk](https://news.sky.com/story/elon-musk-sued-for-258bn-over-claims-he-ran-a-pyramid-scheme-to-promote-dogecoin-12635334) for $258 billion (€245 billion) for allegedly "running a pyramid scheme to support the cryptocurrency".

In an accusation filed in Manhattan federal court, plaintiff Keith Johnson accused Musk, the electric vehicle maker and the space tourism company CEO of racketeering by touting Dogecoin and driving its price up, only to let it tumble.

Key Tech figures like Warren Buffet and Bill gates have earlier questioned the worth of Bitcoin. The major criticism of Bill Gates is the anonymity and irreversibility of transactions, while Buffet doesn’t see it as a means of utility.



Terra debacle: Interpol issues red notice on Do Kwon

The long-awaited [Ethereum merge](/news/article/ethereum-merge-date) has transformed the blockchain into Proof-of-Stake (PoS). On Thursday, the upgrade was completed, which was welcomed by crypto investors all around the globe. 

Gary Gensler, the chair of the [Securities and Exchange Commission (SEC)](https://www.sec.gov/), has also followed the developments. He hinted that Ethereum might be considered security after the upgrade. Gensler also warned that the securities laws might also apply to Ether staking. He shared his points while speaking to the media after testifying before the Senate Committee. 

## Ether staking could trigger securities laws

According to the SEC chair, any digital coin or intermediary that investors can ‘stake’ will be identified as ‘security’ through the Howey Test. The Wall Street Journal [reported](https://www.wsj.com/articles/ethers-new-staking-model-could-draw-sec-attention-11663266224) that Gensler remarked, “From the coin’s perspective … that’s another indicia that under the Howey test, the investing public is anticipating profits based on the efforts of others.”

Though the chair has not mentioned any particular cryptocurrency, the remarks were made the same day as the Ethereum Merger. Many speculate that he was referring to Ether staking as its consensus mechanism has changed from Proof-of-Work to [Proof-of-Stake](/news/article/pos-vs-pow).

Gary Gensler also explained that staking is quite similar to lending. About this, his comments were, “[it] looks very similar—with some changes of labelling—to lending.”  

## SEC stance on securities

A security asset generally includes bonds and stocks. The service providers related to this type of assets in the United States must disclose them per the defined securities laws of the 1930s. That’s why any crypto exchange or brokerage also has to comply with these laws. If any asset is deemed a security, regulators might take legal action against the service provider. 

Previously, the regulating body has charged several firms for violating [securities laws](https://www.history.com/topics/us-government/securities-and-exchange-commission). The [SEC vs Ripple labs](/news/article/xrp-court-case-update) is a highly anticipated lawsuit in the crypto space. 

The regulators deemed the XRP token as a security and charged the firm for irregularities. 

The conclusion of this case might affect several other tokens too. The regulators also penalised BlockFi with a $100 million fine as it failed to register its interest accounts. 



Securities laws may apply to Ether staking, warns SEC

The Chamber of Digital Commerce is an advocacy group and trade association for cryptocurrencies. On Monday, the firm published a report, [The Crypto Conundrum: Why Won’t the SEC Approve a Bitcoin ETF?](https://digitalchamber.org/crypto-conundrum/) In this report, the organisation has urged the Securities and Exchange Commission of the United States to approve the [Bitcoin ETF.](/news/article/bitcoin-etf-launches) 

The trade association argues that even though the demands for exchange-traded funds (ETF) are met, the SEC is reluctant to approve them. Earlier, the SEC also rejected the [Grayscale ETF application](https://www.coindesk.com/policy/2022/06/30/grayscale-sues-sec-over-bitcoin-etf-application-rejection/). However, the company sued the regulators, and the case is still in court. Amid this, the Chamber of Digital Commerce has made a public argument for bringing Bitcoin spot ETFs to the US. 

## Chamber of Digital Commerce’s stance on Bitcoin ETF

The organisation argues that the US regulators are blocking the way for BTC spot ETFs in the country. Many companies in countries like Canada and Australia are already providing related services to their investors. On the other hand, in the US, regulators have rejected the applications of 16 companies. 

“As the SEC continues to stonewall, the United States falls further behind other countries as capital that would have been invested in the US and managed by local firms employing American citizens is instead deployed in other, more innovation-friendly countries,” the firm explained.

In the report, the organisation further claims that the companies have complied with all the demands of the [SEC](/news/tag/sec), yet their applications are rejected. Moreover, it argues that denying the applications would not help protect the investors. Instead, it will force them to go with non-regulated options.
 
![Chamber of digital commerce Tweet](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Chamber_Of_Commerce_Tweet_c7e20d795f.jpg)

The organisation also made some allegations against the SEC’s chair Gary Gensler. The report argued that expanding the regulatory authority is a move for a “jurisdictional land grab.” Moreover, the report said that Gensler’s position restricts the communication between the regulatory body and the digital asset service providers. 


Chamber of digital commerce pushes for Bitcoin ETF

The United States Securities and Exchange Commission (SEC) has announced opening two new offices, bringing the number of SEC crypto departments to seven, to facilitate exclusive support for evaluating issuer filings.

One of the two new offices will solely be managing crypto assets. Its purpose will be to provide the regulatory body with a solution to the growing number of crypto issuers in the country.

According to a statement by the[ Securities and Exchange Commission (SEC)](/news/article/xrp-court-case-update), the newly established Office of Crypto Assets and Office of Industrial Applications and Services will operate as part of the Disclosure Review Program (DRP), which is part of the Division of Corporation Finance administers.

Both offices will focus on "providing a focused review of issuer filings". Additionally, the authority affirmed that the work done throughout the DRP to review submissions regarding crypto assets would continue to be carried out by the Office of Crypto Assets.

According to the statement, the DRP can better focus its resources and experience to solve the specific and changing filing review challenges associated with crypto assets if it assigns firms and filings to a single office.

## The latest cryptocurrency news from the SEC's division of digital assets

Renee Jones, the [director of the SEC's Division of Corporation Finance](https://beat.10ztalk.com/2022/09/12/sec-sets-up-an-office-of-crypto-assets/), explained that the rapid expansion of the cryptocurrency market had demonstrated the DRP's Office of Finance's requirement to give more substantial and specialised support. She went on to elaborate: "The establishment of these additional offices will make it possible for the DRP to strengthen its focus in the areas of crypto assets, financial institutions, life sciences, and industrial applications and services, and it will also make it easier for us to fulfil our purpose.

Gary Gensler, chairman of the Securities and Exchange Commission (SEC), stated last week that he had instructed the SEC staff to engage directly with business owners to ensure that their tokens are appropriately registered and regulated as securities.

The non-pharmaceutical, non-biotechnological, and non-medicinal goods developed by the Office of Life Sciences will be the primary focus of the second new office, the Office of Industrial Applications and Services.


SEC crypto news: SEC opens 2 new crypto offices

Ripple native token XRP has consistently stayed in the top charts as one of the most valuable coins on [Coinmarketcap](https://coinmarketcap.com/currencies/xrp/?period=7d) for the past two years, with a market cap of over $ 18 billion and occupying the 6th position on Coinmarketcap.

The initial growth and buzz around XRP has slowed down in the past due to legal issues with the SEC (Security Exchange Commission).

Ripple has been embroiled in a row with the watchdog of the SEC since 2020, and it seems like the case isn't ending anytime soon.

## The genesis of the SEC court case with Ripple

The SEC court case with Ripple is based on the belief that the $1.3 million raised by Ripple is illegal because it classified XRP, the native token of Ripple, as a security and not a digital asset, which has placed XRP under stringent security laws.

## SEC's position on the court case

SEC's stance on the court case is that the way in which Ripple raised their ICO with XRP is illegal, as contained in the documents released to the public on December 20, 2020, which include a [detailed report](https://www.sec.gov/news/press-release/2020-338) on the charge against Ripple.
 
However, Ripple, in response, claimed; 

As stated in their [whitepaper](https://whitepaper.io/coin/ripple), XRP, the native token of Ripple, is used for cross-border payment and is available on exchanges worldwide.

## Latest court update

In the latest XRP court case update, SEC seems to have suffered a setback, one of the series it has suffered since the start of the court case with Ripple. In their latest animosity, Judge Netburn approved Ripple's motion to authenticate SEC officials' public remarks. 

Netburn also ruled that expert's identity should not be sealed.

According to James K.Filan, a defence lawyer who has been sharing critical updates about the Ripple vs SEC lawsuit on his Twitter account.

"A letter from the SEC asks the parties to seal portions of their oppositions to Exclusion Motions that contain information identifying SEC experts and some financial information about one of the SEC Experts."

One of Ripple's defence attorneys is Mary Jo White, the former chairman of the SEC. Having someone who has occupied an important position in the SEC as a defence attorney proves that Ripple is not treating the XRP court case unseriously.

## Implications of the XRP court case on the cryptocurrency industry

The cryptocurrency community is looking at how the Ripple and the SEC case will end with keen interest, as it will have a ripple effect on the [legal status of cryptocurrency](/news/article/xrp-case-price-uk) in general.

Regardless of the case's outcome, the status of some cryptocurrencies will surely change to being [classified as a security or commodity](/news/article/sec-crypto), leading to a significant disruption in the cryptocurrency industry.




Ripple vs SEC: XRP latest court case update

The Securities and Exchange Commission (SEC) has filed charges against [Zipmex](https://zipmex.com/th/en/) Thailand. The police complaint reports that the exchange is violating the regulatory framework of the SEC. The charges involve the business and its Chief Executive Officer and co-founder, Akalarp Yimwilai.
 
Zipmex Thailand is a crypto exchange that suffered from an industry-wide downturn caused by high debts and leverages. It loaned money to the faltered crypto companies: Celsius and Babel Finance. 

It lent a total of over $50 million to these firms. However, both have failed to pay back the exchange, and Celsius has even filed for [bankruptcy](/news/article/celsius-bankruptcy-protection). This led Zipmex to [freeze withdrawals](/news/article/zipmex-creditor-protection). 

## Thai SEC allegations on Zipmex

The SEC has released an [official statement](https://www.sec.or.th/TH/Pages/News_Detail.aspx?SECID=9597&NewsNo=147&NewsYear=2565&Lang=TH) about the charges against the cryptocurrency firm. According to the report, the regulatory body claimed to order the concerned firm to declare transactional details about digital assets. It gave the firm’s officials an apt timeframe for providing the information. 

However, the firm did not follow the order and provided incomplete transactional information after the deadline. The firm also failed to give any reasonable excuse for it. This led the regulators to take action and file charges against it. 

The regulators also said that these actions are deemed as non-compliance. Moreover, they mentioned that it could be penalised under Section 75 of the Digital Assets Act.

## Zipmex Thailand’s stance

On the other hand, the company also responded to these charges via a [press release.](https://zipmex.com/th/en/announcements/pr-holding-statement-th-060922/) According to it, the company received a letter from the SEC for the declaration of transactional details of digital assets on 2 September 2022. 

It clarified that the company is currently compiling the pertinent documents for this matter. They said that Zipmex Thailand is further reviewing the records of Zipmex Pte. Ltd., which does not fall under the Thai regulator’s jurisdiction. 

Moreover, the statement emphasised that information disclosure must be handled with diligence for the company’s data privacy. It also assured the customers that the company was taking the matter by prioritising their interests.




SEC charges Zipmex Thailand for regulatory breaches

On 22 December 2020, the US Security and Exchange (SEC) [filed a lawsuit against Ripple Lab](/news/article/ripple-xrp-latest-news), the company behind the Ripple Network and XRP tokens, and two of its executives. According to the SEC, Ripple executives held an Initial Public Offering (IPO) of XRP, which was unregistered security.

## The SEC claims to the XRP case

The SEC took Ripple Lab to court because they claimed XRP tokens are securities. The tokens were classified as securities since they were used to fund Ripple’s platform, which facilitates money transfers for retailers. The sale of the tokens also enriched the platform’s management.

The tokens also satisfied the Howey Test, a test that aids in determining whether an asset is a security. As securities, XRP tokens were supposed to have been registered with the SEC and certain financial information publicly disclosed. Ripple Labs failed to adhere to the SEC securities requirements.

## Ripple’s response to the XRP case

Ripple, through its lawyers, claimed that the SEC never warned nor gave fair notice that XRP tokens were securities. The SEC admitted no statement was made that XRP could be classified as securities.

Ripple also claimed the SEC was biased in applying the security concept on [XRP tokens](/news/article/xrp-case-price-uk). The company pointed out some of the links SEC members have had with other crypto platforms, especially Ethereum. 

There is still no proof to Ripple’s claims that the SEC gave Ethereum a pass on securities legislation, saying it operates in a decentralized manner while suing Ripple is suspicious.

## The XRP case so far

Ever since the SEC took Ripple to court, the company, through its lawyers has been trying to get the case dismissed.

On May 4th 2022, Ripple, again, filed a motion to dismiss the SEC’s charges. Reason for the case dismissal was the SEC’s failure to state claim against Ripple.

Attached to Ripple’s dismissal motion was a letter from an unidentified third-party. The letter claimed the SEC’s lawsuit against Ripple could have a negative impact on the US financial system.

According to the letter if the court was to conclude that XRP tokens are securities it could stunt the growth of blockchain technology and cryptocurrencies in the United States.  

A lose for Ripple would result in the secondary market for XRP tokens ceasing to exist and many US investors who hold them would be left with worthless assets.

In a bid to prove XRP tokens are not securities Ripple asked the SEC to release emails related to a 2018 speech by former SEC director William Hinman in which he argued Ethereum was not a security.

A judge ordered the SEC to release drafts of the speech and related emails but the SEC argued the communications were protected by “attorney-client” privilege. On July 12th the SEC’s appeal for protection from disclosure of William Hinman’s speeches was dismissed.

The SEC has also failed to block XRP holders from aiding in the XRP case. The [court dismissed the SEC’s motion](https://forkast.news/headlines/sec-fails-xrp-holders-aiding-ripple-case/) to revoke the “friends of the court” status granted to XRP holders.

So far Ripple Labs seems to have the upper hand in the XRP case. The company through its lawyers has further accused the SEC of using unfair tactics to try and prolong the case.

## Bottom line

The Ripple lawsuit is one of the most followed cases in the crypto space. The decision of the case is vital to the crypto space as it could be a win or lose for the industry. 

So far, Ripple seems to be winning, considering the unfair tactics the SEC is using to prolong the case. The decision of the case might be reached in 2023.


XRP and SEC case: Where are we now

Ripple entered the crypto space back in 2012 as a promising project. It offered a low-priced, fast, and cross-border money transferring service that gained great popularity. However, in 2020, it faced a severe [lawsuit](/news/article/ripple-xrp-latest-news) from the Securities and Exchange Commission (SEC) in the United States. The case is yet to be concluded, but it has affected the popularity of XRP.

Ripple faced a lawsuit because it deviated from its fundamental goal of providing secure cross-border money transferring service. However, its impact on the token’s price is still unclear. So, if you are wondering about the XRP price in the UK, here are some insights!

## What is the SEC vs Ripple case?

The US’s Securities and Exchange Commission (SEC) filed a case on Ripple Labs in December 2020 for raising funds through XRP. In 2013, the firm allegedly raised more than $1.3 billion through illicit means. The complaint from the SEC involved charges against the current and previous executives for making gains. 

## SEC’s complaint

As per the SEC’s complaint, the company raised capital by holding its native token’s Initial Public Offering (IPO) without registering it as a security. The firm sold XRP as an unregistered security to the investors. Investors bought the tokens considering their shares in a venture, hoping their price would gradually increase.

According to the [SEC press release](https://www.sec.gov/news/press-release/2020-338) ‘Ripple allegedly distributed billions of XRP in exchange for non-cash consideration, such as labor and market-making services. According to the complaint, in addition to structuring and promoting the XRP sales used to finance the company's business, the founders Larsen and Garlinghouse also effected personal unregistered sales of XRP totaling approximately $600 million’. SEC advocates that these tokens should be classified as securities rather than utility tokens.

## Ripple’s Stance

On the other hand, Ripple claims that the SEC did not warn the firm about the issue. According to its lawyers, the SEC did not notify Ripple’s executives about the classification of XRP as a security. The US regulator also confirms this stance. 

Moreover, lawyers also claim that the SEC has been biased towards the firm. They have claimed that various crypto firms like Ethereum have connections with a few SEC members. However, it has not been established in court yet.
 
## What will be the implications on XRP price (UK)?

So far, the US court has not announced a date for giving the verdict, but the case is approaching conclusion. The proceedings of the case might not only affect Ripple Labs but can also negatively impact the crypto market. The reason is that if the court weighs in with SEC’s claim of XRP being declared a security, it would also apply to various other virtual currencies working with the exact mechanism. 

If the court declares the token a security, the XRP price will come crashing down. The XRP price in the UK might not be able to recover. Also, as it can be a legal precedent for all the countries, it will likely affect the entire crypto market. Moreover, Ripple can question Ethereum too, as it can also fall under the definition of security. This might further aggravate the ongoing crypto winter. 

Nonetheless, this would be the case only if the SEC wins the case. Otherwise, if Ripple Labs wins this court battle, we might see the XRP price (UK) getting strengthened. 




SEC vs Ripple case influence on XRP price in UK

The [senate bill proposed on Wednesday](https://www.protocol.com/bulletins/senate-bill-cftc-crypto) by Michigan Democrat Sen. Debbie Stabenow and Arkansas Republican Sen. John Boozman is the latest attempt in Washington to establish more defined government laws for digital assets. Under this law, the Commodity Futures Trading Commission would be given power over the markets for Bitcoin and Ether, the two major cryptocurrencies.

The CFTC and the SEC have been wrangling for control of cryptocurrencies. Tensions recently heightened when the SEC classified a list of crypto tokens as securities in an insider trading lawsuit, triggering public criticism from Caroline Pham, a CFTC commissioner.

## Senate bill could give clarification

The senate bill proposed could give some clarification. It would give the CFTC direct authority over tokens classified as "digital commodities." According to the bill summary, this covers bitcoin and ether.

Online exchanges and other businesses that assist in token trading would have to register with the CFTC. The bill would also mandate the CFTC to verify crypto businesses, avoid abusive trading practices, have adequate financial resources and appropriate cybersecurity safeguards.

The bill also acknowledges the role of other financial bodies in regulating digital assets that are not commodities but act more like securities or means of payment.

The emphasis on Ether and Bitcoin as commodities is consistent with the views of SEC Chair Gary Gensler, who has stated that most other tokens are likely to be securities.

However, the bill only briefly mentions the classification and uses the examples of Bitcoin (BTC) and Ether (ETH), which the SEC previously classified as commodities. In addition, the law states that any crypto assets that are not deemed as securities by the SEC may bear the CFTC's commodities stamp.

Rostin Behnman, the head of the CFTC, has been vying for a new authority to oversee digital commodities spot markets, where the assets are traded directly. The new legislation would give that power. The bill states that the CFTC would have "exclusive authority over any account, agreement, contract, or transaction involving a digital commodities trade."

A broader [crypto regulation](/news/article/us-sec-regulation) bill submitted in June by Senators Kirsten Gillibrand and Cynthia Lummis considers the CFTC to play a leading role in crypto regulation. Gillibrand and Lummis recently admitted that the complete legislative package was unlikely to pass this year but that some provisions, such as those defining the function of the CFTC, may go through Senate committees.



Senate bill to strengthen CFTC's crypto authority

The first case of Coinbase insider trading has resulted in charges. US prosecutors in Manhattan have charged a former product manager with wire fraud, according to the New York Times.

Product manager Ishan Wahi and his brother, Nikhil Wahi, were taken into custody in Seattle on Thursday. Another defendant, Sameer Ramani, remains at large, and the Securities and Exchange Commission (SEC) has filed civil accusations against him as well.

## Coinbase insider trading is the subject of an investigation by the SEC

Lawyers representing Ishan Wahi, 32, released a statement saying that he is "innocent of all crime and intends to defend himself forcefully."

Requests for feedback from Nikhil Wahi's lawyer were not immediately returned. A lawyer for Ramani was not immediately available to Reuters.

Prosecutors allege that[ Ishan Wahi divulged sensitive information](https://www.foxbusiness.com/markets/ex-coinbase-manager-charged-crypto-insider-trading-case) on upcoming Coinbase announcements about additional cryptocurrency assets that users would soon be able to trade on the exchange. He booked a flight to India after being summoned to Coinbase's Seattle headquarters by the company's security director, according to the report.

For the first time in insider trading of digital assets, an ex-NFT marketplace employee has been charged. Law enforcement prevented him from boarding that flight on May 16. The bond for Ishan Wahi was set at $1 million and his passports had to be surrendered.

Despite his alleged attempt to run, prosecutors did not urge that he be arrested. On August 2, he will appear in federal court in Manhattan.

A total of 25 crypto assets were allegedly bought and sold for a profit by Nikhil Wahi (26) and Ramani (33), it states in the related civil accusations, nine of which the SEC said it had classified as securities.

## Cryptoqueen added to FBI's list of top 10 most wanted

The SEC's investigation into Coinbase's listing of the coins deemed securities in the complaint is ongoing, according to an SEC official.
At least 14 times before Coinbase's statements in June 2021 and April 2022, Ethereum blockchain wallets were used to acquire the assets, according to prosecutors.

At least $1.5 million in ill-gotten gains were generated as a result of these transactions.

An internal investigation into the trading was shared with authorities, according to Coinbase's chief security officer Philip Martin. 

For breaking crypto news on Coinbase and more, go to [Latest Moni](/news).


Insider Trading Charges Filed Against Ex-Coinbase Manager

US SEC chairman [outlines what to expect](https://beat.10ztalk.com/2022/07/18/sec-chairman-gary-gensler-outlines-details-of-crypto-regulation/) from the authority regarding crypto regulation. SEC’s duties being the primary watchdog for securities, finance, and investments will expand. 

## Global cryptocurrency regulations

The need for crypto laws arose after a down market and the [collapse of Terra UST](/news/article/terra-luna-collapse), which caused investors to lose a massive amount of their investments. As a result, China openly prohibited the use of cryptocurrencies, while Russia prohibited its use as a payment alternative.

The US remained hesitant to finalise the proposed crypto regulations until Biden requested the crypto regulation draft from the US SEC authority. The regulation draft is submitted for review and is anticipated to be deployed shortly.

As the deadline for implementing crypto laws approaches, the SEC has geared itself for the duties that will fall on its shoulders soon. US SEC chairman spoke to Yahoo Finance about the details of their forthcoming duties once the laws are implemented.

## US SEC and cryptocurrency regulation

Gensler stated that the new cryptocurrency regulation would assist investors and customers by protecting them from any difficulties caused by service providers. Their primary focus areas, according to Gensler, will be exchanges, brokerage, and loans. He stated that they are contacting stakeholders to notify them of their needs.

While stating that they are open to conversations and discussions, he also invited exchangers, lenders, and other dealers to come and speak with them. 

He noted that Congress had given the SEC authority to change some laws to better safeguard investors, stating:

“We do have robust authorities from Congress also to use our exemptive authorities that we can tailor investor protection.”

They even have the authority, he claims, to request tokens for disclosures. He stated that the public has the right to comprehensive and honest disclosures, which would serve as their primary safeguard.

Because the SEC is obliged to cover tokens, stablecoins, and volatile coins, they will also have the power to consult with banking authorities and the CFTC. He has emphasised that Bitcoin is not a security coin and that the CFTC would decide the remainder of the coins and tokens status. He has also cautioned that many crypto coins will fail, so investors should exercise caution.







US SEC Chairman outlines crypto regulation

Despite the company's significant efforts to obtain clearance, the SEC denied Grayscale Investments' approval to transform its $13.5 billion [Grayscale Bitcoin Trust (GBTC)](https://cointelegraph.com/news/breaking-grayscale-launches-legal-challenge-to-bitcoin-spot-etf-rejection) into a spot-based bitcoin ETF on Wednesday.

The decision follows the SEC's rejection of Bitwise's application for a spot bitcoin ETF on Wednesday.

After a protracted struggle to convince the SEC that the product had enough investor security, the refusal is a blow not only to Grayscale but to the whole cryptocurrency industry.

## The significance of a BTC spot ETF in the U.S. markets

The significance of a Bitcoin based spot ETF being available on the listed U.S. markets cannot be overstated. It would mean that institutional and everyday investors could buy and sell Bitcoin like any other security on the market.

This would give institutional investors more confidence in the market and could help to fuel the next bull run. It would also make it much easier for average people to invest in Bitcoin, which could help further mainstream adoption.

## Why was Grayscale's BTC trust spot ETF approval denied?

Grayscale's BTC Trust Spot ETF application was recently rejected by the SEC. The reason behind the rejection is:

1) The SEC is concerned about Bitcoin's volatility and its potential to cause market instability.
2) The SEC is concerned investors would lack sufficient protections under the Grayscale proposal.

## Grayscale's legal action
 
In October 2021, Grayscale filed to have its Bitcoin Trust known as GBTC, become an ETF, but the decision was repeatedly postponed. Grayscale has increased pressure on the authority to support it, including by providing a means for individuals to email their support immediately.

In a petition, Grayscale promptly challenged the SEC's judgment to the U.S. Court of Appeals for the District of Columbia Circuit. Donald B. Verrilli Jr., a former solicitor general of the United States, is Grayscale's senior legal strategist and is leading a group of lawyers from Davis Polk & Wardwell in this case.

According to Verrilli, the SEC is "failing to apply consistent treatment to similar investment vehicles, and acting arbitrarily and capriciously in violation of the Administrative Procedure Act and Securities Exchange Act of 1934."

SEC Chair Gary Gensler has repeatedly stated that he wants to see greater control of cryptocurrency exchanges before authorising a BTC spot ETF.

The focus of investors and cryptocurrency experts will now shift to what Grayscale can and will do to secure permission for conversion. On June 27, CEO Michael Sonnenshein stated that the business will be "preparing for all possible post-ruling scenarios." On the same day, Grayscale also said that if its application were to be approved, it would work with market makers Virtu Financial and Jane Street to assist in turning GBTC into an ETF.

Stay tuned with [Moni Talks](https://monitalks.io/news) for the latest crypto news.


Grayscale sues SEC for denying BTC ETF approval

According to Gary Gensler, the United States Securities and Exchange Commission (SEC) chairman, Bitcoin is a commodity. In a recent interview with CNBC, he elaborated on the SEC's plans to collaborate with the Commodity Futures Trading Commission (CFTC) and banking regulators in order to oversee the crypto sector.

In an [interview](https://www.cnbc.com/video/2022/06/27/sec-chair-gary-gensler-discusses-potential-crypto-regulation-and-stablecoins.html?&qsearchterm=gary%20gensler) with Mad Money presenter Jim Cramer on CNBC on Monday, SEC Chairman Gary Gensler reiterated his views on cryptocurrencies, namely Bitcoin (BTC).

The SEC head, stated that while several crypto-financial assets like Ethereum (ETH), [Dogecoin](https://www.monitalks.io/news/article/elon-musk-dogecoin), etc. contain the essential characteristics of securities, Bitcoin is the "only one" he feels confident officially classifying as a commodity:

"Some, like Bitcoin — and that's the only one I'm going to say because I'm not going to talk about any one of these tokens, but my predecessors and others have said Bitcoin is a commodity."

## Crypto community reaction to SEC chair interview

The crypto community raised questions about the statement's influence on Grayscales' proposed Bitcoin exchange-traded fund (ETF), and the omission ETH as a commodity was questioned.

The comments sparked discussion over Grayscale's proposal to turn its Bitcoin Trust into a spot-based ETF, which is anticipated to get a yes-or-no answer from the SEC on July 6.

Even though the regulator and the Commodity Futures Trading Commission (CTFC) earlier concurred that Ethereum (ETH) was a commodity exactly like BTC, Gensler chose not to specify whether he placed ETH in the same commodities boat. This was picked up on Twitter.

The prices of digital assets like Bitcoin and Ethereum have plummeted sharply in recent weeks, though they have lately shown signs of stabilization.

Bitcoin has decreased by around 60% over the last six months, but it has increased by roughly 1% in the past week.





SEC crypto chronicles- Gary Gensler affirms BTC as commodity

As the global cryptocurrency landscape evolves, so do crypto regulations governing it. Keeping up to date with the rules and regulations in different countries is not always easy, but it is essential for anyone looking to trade or invest in cryptocurrencies.

Here are some key regulatory developments in the space over the past year and what we can expect in the year ahead.

## United States

The Securities and Exchange Commission (SEC) in the United States has been ramping up its scrutiny of the cryptocurrency space.
In 2020, the SEC brought many enforcement actions against companies and individuals involved in illegal activity, including fraud and money laundering. The SEC also issued several investor warnings about the risks of investing in cryptocurrencies.

In 2022, the SEC is expected to continue its crackdown on illegal activity in the cryptocurrency space. The agency is also likely to release more guidance on what types of digital assets will be considered securities. This could significantly impact how cryptocurrencies are traded and sold in the United States.

The Internal Revenue Service (IRS) considers cryptocurrencies a digital representation of value that serves as a store of value, unit of account, and a medium of exchange. Still, it does not consider them to be legal currency. As a result of this guidance, the IRS has issued cryptocurrency-specific tax rules.

## Europe

As the European Union looks to 2022 and beyond, cryptocurrencies will continue to play a significant role in the digital economy. In light of this, the EU is taking steps to ensure that crypto assets are regulated to promote innovation and protect consumers.

The Fifth Anti-Money Laundering Directive (5AMLD), brought into force in January 2020, is a vital part of the EU's efforts to regulate cryptocurrencies. 5AMLD brought cryptocurrency-fiat currency exchanges under EU anti-money laundering legislation to prevent the use of crypto assets for illicit purposes.

The European Commission is considering proposals to extend 5AMLD to cover custodial wallet providers and peer-to-peer (P2P) exchanges. The Commission is also considering introducing a pan-EU licensing regime for cryptocurrency service providers.

The European Union is also working on developing its digital currency, known as the Digital Euro. The Digital Euro would be a new form of central bank money, available to all citizens and businesses in the EU. The European Commission is currently exploring the feasibility of launching a Digital Euro and is expected to present its findings before the launch.

## China

In Asia, China has been one of the most active countries when it comes to regulating cryptocurrencies. In 2017, China banned initial coin offerings (ICOs) and shut down cryptocurrency exchanges. Since that time, the Chinese government has taken a more cautious approach to space.

In 2020, China launched its digital currency, known as the "digital yuan." The digital yuan is not entirely decentralised like other cryptocurrencies. However, it is still seen as a significant step forward for the adoption of digital currencies.

The Chinese government is also working on a blockchain-based system to track and trace digital assets.
This year, we can expect more regulatory clarity from the Chinese government. The digital yuan is expected to launch in a pilot program sometime this year. And the [blockchain-based tracking system](https://finance.yahoo.com/news/cbdc-launch-first-2022-093011347.html) could be up and running very soon. And it will be legalised as payment for tolls, transport fares, bills, and goods.

## South Korea

As the global cryptocurrency market matures, governments and financial institutions pay increasing attention to digital assets. Cryptocurrencies are not treated as legal money in South Korea. While exchanges are legal, they operate in a carefully regulated environment.

Cryptocurrency transactions are currently tax-free in the country because they are considered neither currency nor a financial asset. However, the Ministry of Strategy and Finance has stated that it will consider imposing a tax on cryptocurrency earnings to provide clarity for investors.

The South Korean government announced a new bill in March 2021 that requires cryptocurrency investors to use the same name on their digital wallet accounts as they do on their bank accounts. That requires cryptocurrency exchanges to provide information to banks to confirm customer identities.

The Tax on Cryptocurrency in South Korea was supposed to go into effect in January 2022, but it has been delayed until January 2023. South Korea has also committed to maintaining the tax framework to foster international financial transparency. In addition, the country has stated that it will continue working toward aligning the industry with FATF's anti-money laundering standards.

## Final Thoughts

The United States, Europe, China, and South Korea are all taking different approaches to regulating cryptocurrencies. Here's a breakdown of what each country is doing and how it will impact the future of crypto.

•	The United States has been relatively hands-off when it comes to cryptocurrency regulation. However, the SEC recently clarified that they consider some digital tokens to be securities. Companies issuing or selling these tokens must comply with federal securities laws. 
•	Europe is taking a more rigorous approach to crypto regulation than the US. The EU has classified Bitcoin as a currency and virtual asset, which subjects it to certain regulations like anti-money laundering and terrorist financing laws. Additionally, new rules proposed by the European Commission would require exchanges to verify customer identities and report suspicious activity. 
•	China has taken a hard line on cryptocurrency regulation, banning ICOs and exchanges. However, the Chinese government is still researching blockchain technology and its potential applications. 
•	South Korea is another country that has taken a tough stance on crypto regulation. The government has banned anonymous trading, required exchanges to verify customer identities, and limits how much money Koreans can invest in cryptocurrency.

These different approaches to regulating cryptocurrencies will have a big impact on the industry's future. In the US, crypto companies will need to comply with securities laws if they want to sell digital tokens. In Europe, crypto exchanges will need to verify customer identities and report suspicious activity. And in China and South Korea, crypto trading is more difficult due to the restrictions placed on exchanges.

As the world grapples with crypto regulations, it will be interesting to see how these different approaches play out.


Crypto Regulations 2022 and Beyond

Chia Network, one of the "greenest" blockchains, recently became a partner of the Blockchain Association. It's a move that will, most probably, have a reasonable impact on Chia coin price prediction

“Together, we'll work to educate policymakers on the growth and application of the Chia blockchain and represent the needs of our development community and farmers around the world,” the company [said](https://www.businesswire.com/news/home/20220518005432/en/Chia-Network-Joins-the-Blockchain-Association-to-Amplify-Policy-Efforts) after the industry lobbying group confirmed its plans to add new members.

The move came as a logical sequel to the last week's stablecoin [Terra collapse](/news/article/luna-price-prediction). It will probably make crypto lobbyists even busier.
According to Gene Hoffman, president and chief operating officer of Chia Network, the company intends to establish an accommodating structure for the future of DeFi. Therefore, a partnership with the Blockchain Association will enable both parties to develop both legal and institutionalised systems through which crypto technology and blockchain will be adopted more quickly. 

By this contract, Chia is obliged to participate with the Blockchain Association in "regulatory analysis and insight". It will also create a platform to amplify the continued growth, development, and application of the Chia blockchain and technologies”. Furthermore, this eco-friendly cryptocurrency keeps representing “the needs of its farmer and developer communities within the industry and to regulatory stakeholders”.

## Bullish Chia Coin Price Estimates

This seems to be the essential catalyst for the Chia coin price prediction because even though investments in energy-conscious tokens are rising over the years, the overall crypto market has been, for some time, on a roller coaster ride. However, analysts agree that Chia (XCH) crypto price prediction is the most encouraging, and this partnership can only help.

At the time of writing, XCH was trading at $33.59, according to Coinmarketcap.com. Its market cap stands at $134.9 million and is fully diluted to approximately $841 million, which looks like a promising future for a currency.

The cryptocurrency recently also confirmed a partnership with Stably to launch a new dollar-pegged stablecoin, dubbed USDS, to support its product 'Offers' within the Chia blockchain.

Not long ago, California-based Chia also had a "long and friendly" conversation with the SEC about the company's operations, where it was determined that while the SEC has many concerns regarding crypto projects, most of them do not apply to Chia. 

With SEC’s blessing and a growing DeFi operation, Chia has a case for a bullish Chia coin price prediction.

## Chia Price Forecast

Chia coin's price prediction shows that despite the bullish perspective on the Chia price forecast for June-July, Chia price could find itself in a temporary fall and hover around $35.

However, later in the year, the coin price could end its descent with strong growth to around $61, at which level the coin should stay by the end of the year.

For 2023, analysis hints that Chia crypto price will go through the tightening coming with a $136 upside potential breakout offering, but afterward jump above $200.

In 2024, Chia Network is predicted to reach approximately $232, while the price of 1 Chia is expected to rocket to $338 in 2025.


Chia Coin Price Prediction - Where Next?

Is [Voyager crypto](https://www.investvoyager.com/) on a voyage to the moon? Some people seem to think so. They point to the partnership with Blockstream as evidence that this up-and-coming cryptocurrency is destined for great things. But others believe that this moonshot is destined to bust. So, which is it?

In this article, we will take a closer look at Voyager crypto and try to determine whether or not its journey to the moon is worth taking.

## What is Voyager Crypto?

Voyager crypto is a new platform that aims to revolutionise the world of cryptocurrency trading. With its advanced algorithms and innovative tools, this platform is designed to make buying and selling cryptocurrencies easier, faster, and more secure.

Unlike traditional exchanges, Voyager crypto offers a wide range of currencies and accessible trade volumes, as well as robust security features to help protect user accounts.
The platform also offers extensive educational resources to help beginner investors get started with crypto trading, and customer support to help users navigate the ever-changing world of crypto investment.

Overall, Voyager crypto looks to be the future of cryptocurrency trading, with its cutting-edge technology and focus on accessibility for all traders.

## What is Voyager Crypto's Plan?

Voyager crypto wants to be a leading global crypto exchange. To achieve this goal, it focuses on providing 'high-quality' services that cater to the needs of all traders, from casual hobbyists to experienced professionals.

The platform is designed with 'user-friendly' features that make it easy to find and execute trades, no matter the expertise.

By drawing on experience in trading and financial technologies, and with input from users across all levels of experience, Voyager crypto aims to be a leader in the rapidly evolving world of [blockchain](/articles/learn-moni/what-is-blockchain) and cryptocurrency.

## What Challenges Does Voyager Crypto Face?

First, the company must overcome the challenge of building trust with potential customers. Voyager crypto is a new entrant to the cryptocurrency space, so people are unfamiliar with the company and its offerings.

The company will need to build a strong marketing and PR campaign to raise awareness of its brand and convince people to use its products and services.
Secondly, Voyager crypto will need to deal with the cryptocurrency market's volatility. Cryptocurrencies are known for their volatility, making it difficult for a company like Voyager crypto to achieve consistent growth.

Finally, Voyager crypto will need to contend with regulatory uncertainty. The cryptocurrency space is still relatively new, and there is much uncertainty around how regulators will treat it in the future. This could threaten the business model's viability.

Nevertheless, Voyager crypto has potential. If these challenges are overcome, it could be a significant player in the cryptocurrency space.

## Is Voyager Crypto a Moonshot or a Bust?

Founded in 2018, New York-based Voyager offers a mobile app and a desktop platform, both designed to be user-friendly and easy to use. Voyager also offers commission-free trading and instant withdrawals.

Regulated by the SEC and a member of FINRA and SIPC, Voyager is also one of the only digital asset brokers that offers FDIC-insured deposits.

Only time will tell if Voyager is a moonshot or a bust.

Voyager crypto has only been around for a few years, and it's still in the early stages of development. However, it has already made a big splash in the world of cryptocurrency.
So far, Voyager crypto seems to be off to a strong start, but time will tell if the momentum can be sustained.

## Voyager Crypto's Chances of Success?

Voyager is built from the ground up with scalability and security in mind. The developers behind Voyager believe that this will make it easier for people to use crypto for everyday transactions, such as buying goods or paying bills.

In addition, Voyager has made a commitment to transparency and accountability, incorporating mechanisms such as governance models and vesting schedules into its design.

## Conclusion

Voyager crypto has potential, and if it can overcome the challenges posed by volatility and regulatory uncertainty, it could become a significant player in the cryptocurrency space.


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