The SEC Chairman’s recent statement on cryptocurrency compliance has generated divided responses in the community.
SEC Chairman Gary Gensler sparks mixed reactions in the crypto community following his recent statement regarding compliance in the cryptocurrency space.
In a post on X dated December 22, the president of the United States Securities and Exchange expressed his concern about the high level of non-compliance in the crypto space:
“There is a lot of noncompliance in the crypto space. It undermines confidence when so many people have been hurt and all they can do is stand in line in the bankruptcy court. Further, this can make it hard for the good faith actors to compete.”
The response from the community was immediate, applauding and criticizing Gensler’s position. Members noted that the SEC has been constantly urged to clarify its position on compliance.
Ripple Legal Director Reveals Settlement Proposal Ahead of SEC Lawsuit
Stuart Alderoty, Ripple’s chief legal officer, reveals details about the US Securities and Exchange Commission’s (SEC) settlement proposal ahead of the lawsuit filed against the company in December 2020, shedding light on a crucial chapter in the controversy regulation around XRP:
“Before the SEC sued Ripple, Chris and Brad (3 yrs. ago today) they offered us the following settlement: the SEC would announce to the market that XRP is a security and the market would be given a short window to “come into compliance.”
In response to the SEC’s suggested terms before taking legal action, Alderoty proposed that Ripple publicly declare that XRP was a security, and he gave the market a short period to adjust to regulations.
The SEC, on December 22, 2020, charged Ripple co-founders Christian Larsen and Bradley Garlinghouse with conducting an unregistered offering of digital asset securities, raising more than USD 1.3 billion.
DeCurve Finance to Refund $49.2 Million After $61 Million Hack in July
The community behind decentralized finance (DeFi) protocol Curve Finance has cast a majority vote in favor of refunding liquidity providers affected by a $61 million hack that occurred last July.
According to on-chain data, 94% of token holders approved the distribution of tokens totaling $49.2 million on December 21. These funds are intended to cover losses suffered by the Curve, JPEGd, Alchemix and Metronome pools. The loss calculation includes the amount of Ether (ETH) and CRV tokens present in the pools before the hack, as well as the lost CRV issuances that would have been distributed to liquidity providers during the last few months.
Curve’s proposal states that the community fund will provide Curve DAO (CRV) tokens for compensation, and that the final amount also incorporates a deduction for tokens recovered since the incident.
The SEC Puts Another Pressure on the Crypto Community, This Time with a Historic Fine on BarnBridge DAO
In a recent statement, the United States Securities and Exchange Commission (SEC) announces a settlement agreement with BarnBridge DAO, a decentralized autonomous organization (DAO), and its founders, Tyler Ward and Troy Murray.
The SEC imposed a substantial fine on the BarnBridge DAO platform for the sale of unregistered securities, specifically, crypto-structured securities known as SMART Yield securities.
The SEC’s legal action centers on allegations of unregistered offer and sale of these structured securities, with the entity agreeing to pay more than $1 million in fines under the settlement. Additionally, the lawsuit noted violations related to the operation of BarnBridge’s SMART Yield pools, deeming them unregistered investment companies.
By Leonardo Perez
