Tag: SEC

SEC Drops Case Against BitClout Nader Al-Naji

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The US Securities and Exchange Commission (SEC) has dropped its two-year-long case against the founder of the blockchain-based social media platform BitClout, Nader Al-Naji.  In the joint dismissal stipulation filed in the US District Court for the Southern District of New York last Thursday, the SEC cited the crypto task force, which was tasked with developing a regulatory framework for crypto in January 2025, and a “reassessment of the evidentiary record” as the basis for dismissal. However, the regulator cautioned in a statement that this case outcome doesn’t necessarily mean…

SEC drops fraud case against BitClout founder Nader ‘Diamondhands’ Al-Naji

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The US Securities and Exchange Commission has agreed to dismiss its civil fraud lawsuit against Nader Al-Naji, the founder of the BitClout blockchain project, now DeSo, according to a joint stipulation filed this week in the Southern District of New York. The SEC originally filed the lawsuit in July 2024, accusing Al-Naji of conducting an unregistered securities offering through the sale of BTCLT, the native token of BitClout. Al-Naji allegedly marketed BitClout as a decentralized project with no central operator, even launching the platform under the pseudonym “Diamondhands.” The SEC…

SEC, CFTC Handshake on Memo to Regulate Markets in Harmony

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Two of the US’s most influential financial regulators have agreed to better coordinate oversight of the financial markets, seeking to put an end to decades of “regulatory turf wars” between them. According to the memorandum of understanding written on Wednesday, the US Securities and Exchange Commission and US Commodity Futures Trading Commission said it has become a “pivotal time” to regulate in harmony as new technologies, such as crypto, make it more challenging to monitor the markets: “New trading models, digital infrastructure, and onchain, automated systems increasingly blur traditional jurisdictional…

SEC and CFTC sign agreement to coordinate crypto and market oversight

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The SEC and the CFTC announced a new Memorandum of Understanding aimed at strengthening coordination between the two agencies and improving regulatory clarity for financial markets, including digital assets. The agreement outlines how the agencies will collaborate on policymaking, oversight, examinations, and enforcement while sharing information and aligning regulatory definitions. Officials said the move is designed to reduce duplicative rules and provide clearer guidance to market participants. “For decades, regulatory turf wars, duplicative agency registrations, and different sets of regulations between the SEC and CFTC have stifled innovation and pushed…

NYSE hit with $9 million SEC penalty over 2023 market disruption

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The New York Stock Exchange has agreed to pay a $9 million penalty to settle charges brought by the US Securities and Exchange Commission over a 2023 technology glitch that disrupted the opening of trading in thousands of stocks. The issue dates back to January 23 when a configuration error left a backup disaster-recovery system running during overnight maintenance, causing the exchange’s Pillar platform to incorrectly process opening auction data, the SEC said in a March 6 filing. That resulted in the exchange bypassing the standard opening auction for more…

SEC moves to settle long-running lawsuit against Justin Sun and Tron entities

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The US Securities and Exchange Commission has agreed to settle its long-running case against Tron founder Justin Sun and companies tied to the TRON ecosystem, according to a court filing submitted Thursday in the District Court for the Southern District of New York. Under the proposed judgment, Rainberry would pay $10 million in penalties. The remaining claims against Sun and the associated foundations would be dropped. Rainberry is the company behind BitTorrent, which became linked to the TRON ecosystem after its 2018 acquisition by Sun. The agreement must still be…

Taylor Lindman Departs Chainlink Labs for SEC Crypto Task Force

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Taylor Lindman, the deputy general counsel at blockchain firm Chainlink Labs, has joined the Securities and Exchange Commission’s Crypto Task Force as its new chief counsel, filling a role left by now-CFTC chair Michael Selig. In an X post on Monday, Chainlink Labs announced Lindman’s departure after five years and confirmed his official appointment to the SEC’s Crypto Task Force. “We thank Taylor for his great five years as a key part of the Chainlink Labs team in his role as deputy general counsel. We all look forward to modernizing…

Binance.US eyes deeper banking ties and charter options after SEC lawsuit withdrawal

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Binance.US, the American arm of the global crypto exchange, is pursuing expansion in the US after securities regulators dropped their 2023 lawsuit against the platform, said Binance’s co-founder Changpeng “CZ” Zhao in a recent interview with Bloomberg News. CZ, who is no longer involved in the day-to-day operations of Binance but remains its largest shareholder, suggested that a more accommodating regulatory environment could open the door to options such as enhanced banking partnerships or securing a financial charter. However, he indicated that execution would depend on legal and management decisions.…

SEC Tells Broker-Dealers Stablecoins Can Count Toward Net Capital

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The US Securities and Exchange Commission (SEC) staff last week clarified that broker-dealers can apply a 2% “haircut” to their stablecoin holdings without objection from the SEC. Previously, broker-dealers were uncertain whether to apply a 100% haircut to their dollar-pegged stablecoins, meaning that they did not count the tokens toward their net capital under existing regulations. The clarification came in the form of a posting by the staff of the SEC’s Division of Trading and Markets as a “Frequently Asked Questions Relating to Crypto Asset Activities and Distributed Ledger Technology.”…

Caroline Pham: CFTC’s focus on foundational principles will enhance market integrity, why collaboration with SEC is essential, and the importance of a positive regulatory posture for crypto innovation

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The CFTC is focusing on returning to foundational principles to enhance market oversight. Emphasis is placed on ensuring financial markets serve the economy through price discovery and risk mitigation. Regulatory efforts should prioritize market integrity over sensational headlines. Acting Chairman Caroline D. Pham leads the U.S. Commodity Futures Trading Commission (CFTC). She previously served as global head of swap dealer and Volcker compliance at Citi. Pham launched the CFTC’s 12-month Crypto Sprint, achieving milestones like tokenized collateral guidance and listed spot crypto trading on CFTC-registered exchanges. Key Takeaways The CFTC…