Home CryptocurrencyAltcoin The Coinbase vs. SEC to determine fate of crypto tokens

The Coinbase vs. SEC to determine fate of crypto tokens

by SuperiorInvest

Coinbase and the U.S. Securities and Exchange Commission faced off in court on Jan. 17 to present arguments on whether Judge Katherine Polk Failla should dismiss or allow the case to continue.

The case, launched by the SEC in June 2023 against Coinbase, is so far one of the most important court battles within the crypto space, as the classification of 13 tokens is at stake.

During the hearing, Judge Failla demonstrated deep knowledge of the crypto industry and repeatedly pressed SEC attorneys to justify why (and when) tokens should be considered securities.

Coinbase lawyer disputes claims that crypto networks and communities are labeled “common business,” as well as comparisons of crypto tokens to stocks, arguing that token purchases on the secondary market lack the rights that accompany shares in similar transactions.

Judge Failla has yet to decide whether the case should continue or whether Coinbase’s motion to dismiss should be granted. Notably, he has experience dismissing crypto cases. In 2013, he agreed to a motion to dismiss a case against Uniswap for allegedly selling “scam tokens.”

Judge Failla knows that her decision will impact the entire industry. During the hearing, she expressed concerns about limiting the SEC’s authority to oversee the crypto space, as well as reservations about classifying a new technology that still lacks regulatory clarity from Congress.

Their concerns indicate that regardless of the decision, the case is in the hands of someone who knows the impacts it can have on businesses, regulation and millions of people inside and outside the United States.

This week’s Crypto Biz also explores VanEck’s review of Bitcoin ETFs, IRS changes to crypto rules, Bitcoin ETF performance, and Core Scientific’s new stock listing.

VanEck to Delist Bitcoin Strategy ETF, Citing Performance and Investor Interest

Asset management company VanEck announced that it plans to close and liquidate its Bitcoin strategy exchange-traded fund less than two years after its launch. In a Jan. 17 announcement, VanEck said its board of directors approved the liquidation and dissolution of the Bitcoin Strategy ETF on the Cboe BZX Exchange, where it had been trading since November 2021. The decision came approximately seven days after the company asset management received approval from the US SEC to list shares of its BTC spot ETF.

IRS Backtracks on Crypto Tax Rules, Exempting TXs from Over $10,000 in Liabilities

US companies will not yet need to report cryptocurrency transactions over $10,000 to the Internal Revenue Service (IRS) until the tax agency publishes a regulatory framework. The decision follows a review of the Infrastructure Investment and Jobs Act (IIJ Act) by the U.S. Treasury Department and the IRS, according to a Jan. 16 IRS announcement. On January 1, a law came into effect requiring all US companies to report cryptocurrency transactions over $10,000, but the tax regulator has stopped enforcing the rule for now.

Bitcoin ETFs Surpass 3x Daily Volume of All 500 ETFs Launched in 2023 Combined

The total volume of 10 spot Bitcoin exchange-traded funds (ETFs) on January 16 exceeded the total volume of the 500 ETFs launched in 2023 more than three times. Yahoo Finance data compiled by Cointelegraph revealed that the 10 newly approved spot Bitcoin ETFs generated just over $1.8 billion in total volume on Jan. 16, with funds offered by Grayscale, BlackRock, and Fidelity accounting for $1.6 billion. of the total. By comparison, the combined trading volume of the 500 ETFs launched in the US in 2023 was just $450 million, according to Bloomberg ETF analyst Eric Balchunas.

Bitcoin Miner Core Scientific to Emerge from Bankruptcy, Relist Stock in ‘Coming Days’

Crypto mining company Core Scientific has received court approval to emerge from bankruptcy and relist its CORZ shares on the Nasdaq, ending a 13-month restructuring process. In a Jan. 16 statement, Core Scientific said its reorganization plan had been confirmed by the bankruptcy court for the Southern District of Texas. The company is targeting a January 23 exit date and anticipates re-listing on the Nasdaq the following day. Under the terms of the Chapter 11 plan, existing shareholders will retain about 60% of the company’s shares. The restructuring plan would also cut millions of debt from its balance sheet and provide a “full recovery” to all classes of creditors.

Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered straight to your inbox every Thursday.

Source Link

Related Posts