ChainCatcher news, according to CoinDesk, the U.S. Securities and Exchange Commission (SEC) has requested the Northern District of California to dismiss three defenses raised by Kraken against allegations of illegal activities on its cryptocurrency trading platform. In a motion submitted on November 5, the regulator rejected Kraken's claims regarding the ambiguity of securities laws and how they apply to virtual assets, as well as the assertion that the exchange did not receive fair notice indicating that its actions were considered violations of securities laws.It also asked the court to dismiss Kraken's "major questions doctrine" defense. This doctrine is a legal principle established by the Supreme Court, which states that agencies cannot expand their regulatory authority without explicit congressional authorization.In November 2023, the SEC sued Kraken for operating as an unregistered securities exchange, broker, dealer, and clearing agency. The SEC stated that it believes Kraken has illegally earned hundreds of millions of dollars by facilitating the buying and selling of crypto asset securities since September 2018. Kraken filed a motion to dismiss the case, which was denied in August.

ChainCatcher news, according to The Block, cryptocurrency exchange Coinbase has filed a motion for partial summary judgment in the U.S. District Court for the District of Columbia to obtain documents from the U.S. Securities and Exchange Commission (SEC) regarding how securities laws apply to cryptocurrencies.Coinbase's Chief Legal Officer Paul Grewal stated that the SEC initially claimed an exemption under the Freedom of Information Act (FOIA), but recently acknowledged that this may not be the case. Currently, the SEC claims it will take three years to provide the documents requested by Coinbase.Previously, Coinbase had sued the SEC and the Federal Deposit Insurance Corporation (FDIC) in June 2024 for failing to comply with its FOIA request. Coinbase seeks to obtain internal and external communications from the SEC regarding whether certain crypto assets (particularly Ethereum) are defined as securities.

ChainCatcher news, according to CoinDesk, Judge Analisa Torres of the Southern District of New York has ruled that Ripple's programmatic sales of XRP to retail customers through trading platforms did not violate federal securities laws. However, Ripple's 1,278 institutional sales transactions violated securities laws, resulting in a fine of $125.035 million, significantly lower than the SEC's request for $1 billion in disgorgement and pre-judgment interest, as well as a $900 million civil penalty.Although the case is reportedly concluded, the U.S. Securities and Exchange Commission (SEC) is expected to appeal the ruling, which means that related legal matters may be prolonged.

ChainCatcher news, according to CoinDesk, Judge Analisa Torres of the Southern District of New York ruled that Ripple's 1,278 institutional sales transactions violated securities laws, resulting in a $125 million fine, significantly lower than the $1 billion in illegal gains and pre-judgment interest, as well as the $900 million civil penalty sought by the U.S. SEC.Judge Torres reiterated her stance that Ripple's sale of XRP to retail customers through exchanges does not violate federal securities laws. However, she prohibited Ripple from violating federal securities laws in the future and issued an injunction requiring Ripple to file a registration statement if it plans to sell any securities. Last July, the judge ruled that Ripple's direct sale of XRP to institutional clients violated federal securities laws, but the act of programmatically selling XRP to retail customers through exchanges did not violate any securities laws. During the proceedings, the SEC attempted to appeal that part of the ruling but was unsuccessful.

ChainCatcher news, according to Bloomberg, U.S. SEC Chairman Gary Gensler discussed the intersection of cryptocurrency and securities law, the political implications of crypto regulation, and his priorities at the SEC during an interview at the Bloomberg Investment Summit.Gensler emphasized that there is no inconsistency between crypto securities and existing securities laws. He pointed out that the rules governing securities are clear, designed to protect investors, and ensure fair, orderly, and efficient markets. Nevertheless, he believes that a significant number of entities in the cryptocurrency space are not complying with these laws. This non-compliance is a key issue that the SEC aims to address through its regulatory oversight.Regarding the growing political significance of the cryptocurrency industry, Gensler stated that his primary responsibility is to protect investors and oversee issuers, ensuring access to fair, orderly, and efficient markets. He added that others may engage in political discussions, but his duty is to uphold the integrity of the capital markets.

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) announced that Terraform Labs PTE, Ltd. and Do Kwon have agreed to pay over $4.5 billion.SEC Chairman Gary Gensler stated, "This case reaffirms the repeatedly stated fact: the economic substance of a product, not its label, marketing, or hype, determines whether it is a security under the securities laws. The fraud committed by Terraform and Do Kwon serves as a reminder that when companies break the law, investors suffer."

ChainCatcher news, according to Coinbase CLO paulgrewal.eth's post on the X platform, U.S. Securities and Exchange Commission Chairman Gary Gensler told the U.S. Congress today that when crypto assets or crypto-related investment schemes are offered or sold in the form of investment contracts, securities laws apply.In addition, Gary Gensler told the U.S. Congress on May 6, 2021, that there is no regulatory framework from the U.S. Securities and Exchange Commission for exchanges trading crypto assets.

ChainCatcher news, according to CoinDesk, Ethereum infrastructure development company Consensys has filed a lawsuit against the U.S. SEC, accusing it of "illegally seizing power" over Ethereum.The company seeks a federal court declaration that Ethereum is not a security, and any investigation based on the idea that Ethereum is a security "would violate" ConsenSys's Fifth Amendment rights and the Administrative Procedure Act. It argues that MetaMask is not a broker under federal law, its staking services do not violate securities laws, and it seeks an injunction prohibiting the SEC from investigating or taking enforcement action related to MetaMask's exchange or staking features.In the lawsuit filed Thursday against the SEC and all five of its commissioners, Consensys revealed that it received a Wells notice from the U.S. SEC on April 10, indicating that the SEC intends to take enforcement action against the company's MetaMask wallet product for violating securities laws. Consensys denies acting as a broker and states that the wallet "neither holds customers' digital assets nor executes any trading functions."

ChainCatcher news, according to financefeeds, the Ontario Superior Court of Canada has initiated a class action lawsuit against the Binance cryptocurrency trading platform, accusing it of selling cryptocurrency derivatives to retail investors without registration, in violation of securities laws.It is reported that the lawsuit seeks damages and the rescission of these transactions. It also claims that Binance's operations failed to register and file a prospectus as required by securities regulations. The court noted in its ruling: "The plaintiffs allege that these sales are illegal and void due to the lack of necessary registration."

ChainCatcher news, according to Walter Bloomberg, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler stated that under securities law, most tokens are securities.

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) has charged the cryptocurrency exchange Kraken with violating federal securities laws by mixing up to $3.3 billion of customer and company funds while operating as an unregistered broker, clearing agency, and dealer, stating that "Kraken sometimes holds more than $500 million in customer cash, and it also mixes some customer cash with its own cash; in fact, Kraken sometimes directly pays operating expenses from bank accounts holding customer cash."

ChainCatcher News, ahead of the hearing by the U.S. House Financial Services Committee, SEC Chairman Gary Gensler seems likely to reiterate his previous stance taken during the Senate Banking, Housing, and Urban Affairs Committee hearing. In his testimony, he stated: "Most crypto tokens are subject to securities laws."Additionally, he issued a notice to remain silent regarding ongoing litigation (the XRP and Grayscale spot ETF conversion rulings). Gensler mentioned that while he appreciates the interest in the SEC's work, he cannot comment on any ongoing litigation. When asked about the SEC's actions so far regarding the approval of a spot Bitcoin ETF, Gensler stated that he is working with agency officials on the matter.Previous news, Gary Gensler will testify on SEC oversight issues at the U.S. House Financial Services Committee hearing on September 27 at 10:00 PM.

ChainCatcher news, according to The Block, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler attended a hearing of the U.S. Senate Banking Committee on Tuesday morning. He continues to assert that cryptocurrencies must adhere to the same laws as other securities like stocks, and that many cryptocurrencies fall under the SEC's jurisdiction. In his prepared testimony released on Monday, he stated, "Given the industry's widespread non-compliance with securities laws, it is not surprising that we see many issues in the market. This is reminiscent of the situation before the implementation of the federal securities laws in the 1920s. Therefore, we have taken a series of enforcement actions, some of which have been settled, and some have been litigated."

ChainCatcher news, according to The Block, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), will attend a hearing of the U.S. Senate Banking Committee on Tuesday. He continues to assert that cryptocurrencies must adhere to the same laws as other securities like stocks, and that many cryptocurrencies fall under the SEC's jurisdiction.He released a prepared testimony on Monday: "Given the industry's widespread non-compliance with securities laws, it is not surprising that we see many issues in the market. This is reminiscent of the situation before the implementation of the federal securities laws in the 1920s. Therefore, we have taken a series of enforcement actions to hold wrongdoers accountable and promote investor protection—some have been settled, and some have been litigated."

ChainCatcher news, according to a legal document shared by former U.S. federal prosecutor James K. Filan on the X platform, the blockchain-based file-sharing network LBRY has issued a notice of appeal and plans to appeal to the U.S. Court of Appeals for the First Circuit regarding the SEC's allegations of violating securities laws.Previously, a judge in New Hampshire ruled that LBRY violated securities laws by selling its native LBC tokens without registering with the U.S. Securities and Exchange Commission (SEC). The SEC initially imposed a fine of $22 million, which was later reduced to $111,000.

ChainCatcher news, according to FOX Business reporter Eleanor Terrett, digital asset company Prometheum responded to U.S. Republican lawmakers' concerns regarding its cryptocurrency brokerage license, stating that "Prometheum's technology is designed to develop a digital asset securities market infrastructure that complies with federal securities laws. This technology will serve as the cornerstone of a compliant and orderly digital asset securities market, protecting investors and serving their best interests. The U.S. Securities and Exchange Commission (SEC) and the Committee on Foreign Investment in the United States (CFIUS) have reviewed Prometheum's previous relationship with Wanxiang and its affiliates, and concluded the investigation without initiating a formal inquiry."Previously, Prometheum signed an agreement with Wanxiang in 2018 to develop blockchain trading software, but that agreement was later terminated.

ChainCatcher news, the California Department of Financial Protection and Innovation (DFPI) has ordered the cryptocurrency trading platform CryptoFX to cease operations, stating that it violated California securities laws and accused CryptoFX of offering and selling unqualified securities while making substantial false statements to investors.According to dozens of complaints submitted to the DFPI, CryptoFX failed to deliver the promised returns on its claimed investments, thereby deceiving investors and causing them to suffer significant financial losses. (Source link)