Congress sees two new bills looking to chart CFTC and SEC regulatory turf in crypto

Two major crypto bills were introduced in the U.S. House of Representatives on Thursday. One aims to establish which cryptocurrencies are securities. The other looks to put regulation of exchanges in the hands of the country’s commodities regulator. The securities bill The Securities Clarity Act, from the office of Representative Tom Emmer (R-MN) establishes a new distinction in securities law between an investment contract and the “an asset sold pursuant to an investment 22 contract, whether tangible or intangible (including an 23 asset in digital form).” The new bill is basically…

Commissioner Peirce wants to see the SEC approve a Bitcoin ETF

In a virtual fireside chat with the D.C. Bar, SEC Commissioner Hester Peirce criticized the commission’s long-standing resistance to a Bitcoin ETF. Moderator Ashley Ebersole asked about the SEC’s highly public dissatisfaction with a long series of Bitcoin ETF proposals in the U.S. Peirce, who is often known as “CryptoMom,” responded with opposition to those rejects: “I’ve been pretty outspoken about my disagreement with my colleagues on disapproving some of these exchange-traded products.” Bitcoin is not uniquely volatile as a base investment for an exchange-traded fund, Peirce argued. “I would…

SEC halts trading for blockchain company run by former Ron Paul staffer

The United State’s securities watchdog has placed a temporary trading suspension on the stock of Vortex Blockchain Technologies until October 6. The Securities and Exchange Commission (SEC) cited confusion over the nature of Vortex’s business operations and the value of their assets as the reason behind the temporary suspension. Vortex Blockchain Technologies Inc, formerly UA Granite Corporation, has been developing a variety of applications in the cryptocurrency space. Its activities reportedly include cloud mining, blockchain hardware and software development, and a cryptocurrency wallet and exchange. The company, which has not…

Philippines SEC warns of ‘cloud mining’ Ponzi related to Bitcoin Vault

The Philippines SEC has released an official warning about Bitcoin (BTC) “cloud mining” company Mining City, advising the public to steer clear of the scheme and others like it. Despite the official condemnation, the price of a related cryptocurrency is on the rise. The warning describes the company as an unlicensed entity in the country and said it was not functioning “in accordance with guidelines for virtual currency exchanges,” stating: “The aforementioned scheme used by Mining City clearly shows an indication of a possible Ponzi scheme in which new investor…

SEC Shuts Down Unikrn For Its $31M 2017 ICO, Commissioner Hester Peirce Dissents

Key Takeaways The Securities Exchange Commission is effectively shutting down Unikrn for its $31.4 million ICO conducted in 2017. Pro-cryptocurrency Commissioner Hester Peirce objected to the enforcement action, saying that it may set a precedent that would stifle future innovation. Unikrn will serve as an example to other ICOs that the SEC is serious about securities registration requirements and will continue to ramp up enforcement. Share this article The SEC ordered that Unikrn payout “substantially all of the company’s assets” to investors, disable its token, and request that UnikoinGold is…

Unikrn ICO faces further SEC action

Unikrn, an initial coin offering, or ICO, from 2017, faces action from the U.S. Securities and Exchange Commision, or SEC.  The SEC has accused the startup of running its ICO without going through the proper legal channels, based on a Sept. 15 statement from the regulating body. The commission claims Unikrn offered an unregistered investment opportunity.  “Unikrn agreed to settle the charges by paying a $6.1 million penalty, substantially all of the company’s assets, to be distributed to investors through a Fair Fund,” the statement said.  Unikrn made headlines back in…

SEC Charges Director Ryan Felton, Rapper T.I. for Shilling Fraudulent Crypto Offering

Key Takeaways The SEC filed a complaint against eight individuals for selling fraudulent and unregistered cryptocurrency securities for two companies, FLiK and Coinspark Film producer Ryan Felton and rapper T.I. are the ringleaders charged in the case The charges seek disgorgement of these gains, monetary penalties, along with restrictions from further participation in shilling and organizing ICOs Share this article Rapper T.I. (Joseph Harris Jr.) and film producer Ryan Felton and six others were charged by the SEC for misappropriating funds from two initial coin offerings. Shilling FLiK and Coinspark…

US SEC upgrades ‘accredited investors,’ puts financial knowledge first

The United States Securities and Exchange Commission has made changes to its definition of who qualifies as an “accredited investor,” likely broadening the field of participants for future private equity offerings. According to the commission, this development is the result of years of internal discussions about better ways to balance requirements for investor protection with the need to make America’s investment landscape more inclusive. Given the SEC’s insistence on regulated crypto token sales, the news could have significant implications for future security token offerings and even widen the pool of…

Starting Second Term Today, SEC Commissioner Peirce Tells Cointelegraph Her Crypto Priorities

Most days, there is little love lost between the United States Securities and Exchange Commission and the world of crypto. As the regulator of the world’s largest capital market, the commission’s continuing work to track down sales for tokens it considers unregistered securities has left a fair bit of the crypto market viewing the commission like a boogeyman. Which is not fair. There are controversial cases, but the ICO boom was rampant with predation, fraud and theft: Exactly the sort of issues you keep a regulator around to stamp out.…

The SEC Has Charged An ICO Operator for Misrepresenting His Platform’s Technology

The U.S. Securities and Exchange Commission, or SEC, publicized legal action against another 2017 Initial Coin Offering, or ICO. Boon.Tech and Rajesh Pavithran, the project’s CEO, face fraud accusations from the commission, as well charges associated with securities registration, an Aug. 13 statement from the SEC detailed.  The statement added: “According to the SEC’s order, from November 2017 to January 2018, Boon.Tech and Pavithran raised approximately $5 million by selling Boon Coins to more than 1,500 investors in the U.S. and worldwide to raise funding to develop and market a platform…