![]() ![]() Chasing clarity: A Senate proposal released this month seeks to give commodities regulators the leading role in overseeing bitcoin and ethereum, while giving the SEC some oversight. 1 day ago &0183 &32 SEC boss Gary Gensler faces ethics scrutiny over Sam Bankman-Fried sitdown.And blockchain firm Ripple is fighting a lawsuit that argues its XRP currency is a security. So are crypto exchanges: One Senate staffer said every US crypto exchange is being investigated.as part of a broad inquiry into companies that pay interest on virtual token deposits, according to people familiar with the matter. Securities and Exchange Commission is scrutinizing cryptocurrency firms Celsius Network, Voyager Digital Ltd. In February, BlockFi agreed to pay the SEC $100M for failing to list its crypto-lending product as a security. Coinbase shares fell 14.14 to 52.93 in New York, leaving the stock down 79 this year. High-yield products have sparked investor protection concerns The U.S. Crypto lenders (think: BlockFi, Celsius) are facing increased scrutiny.People who had their funds locked by crypto lender Celsius, for example, are begging bankruptcy judges for help. In many crypto-fraud cases, there isn’t much investors can do. The SEC review focuses on whether the BlockFi accounts are akin to securities that should be registered with the regulator, according to a person with knowledge. An ongoing area of focus continues to be the classification of cryptos and DeFi products. Recent meltdowns of some high-yield crypto lenders have added fuel to the fire. A number of exchanges have fallen under the watchful eye of the SEC in recent months. The regulator is currently in a legal battle with Grayscale over whether the firm will be allowed to convert its. Scrutiny is brewing… This year, high-profile instances of crypto fraud have cranked up the heat from regulators and lawmakers. The SEC has so far resisted allowing the launch of a spot bitcoin ETF in the U.S. Right now: A lot of cryptos are considered commodities, and lots of crypto products are virtually unregulated.An asset is deemed a security by the SEC if it’s “an investment of money, in a common enterprise, with a reasonable expectation of profit derived from the efforts of others.”.The SEC's doing more than talking: as part of an insider-trading case last month, it classified nine cryptos as securities. Think: the same controls and protections as stocks and bonds. For over a year SEC Chair Gary Gensler has said that many crypto products should be considered securities and regulated as such. The good, the bad, and the cryptic… Crypto’s so-called “Wild West” could be in for a reckoning.
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