Bitcoin's struggles continue as the halving is just hours away.

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Bitcoin’s price has dropped below $60,000, hitting a low of around $59,600 on Binance. The drop follows news that Israel conducted missile strikes against Iran early Friday morning (UTC). ABC News first reported the attack, citing confirmation from a senior US official.
As reported, Israel’s action is a response to Iran’s attack last Saturday, using over 300 drones and missiles. Bitcoin tumbled following Iran’s attack. According to Israeli military officials, nearly all of these were intercepted by Israel and its allies, including the US.
The market reacted quickly to the latest news, with Bitcoin’s value dipping below the $60,000 threshold. After the sudden drop, Bitcoin has retraced above $61,500, down slightly in the last 24 hours, according to CoinGecko’s data.
Altcoins are also down, with Ethereum currently trading near $3,000, a 2% decline in the last 24 hours. Major cryptos are experiencing similar drops, ranging from 1-3%.
Commenting on the escalating conflict between Iran and Israel, Bitcoin analyst Tuur Demeester said geopolitical instability tends to boost demand for assets that are “liquid,” “scarce,” and have “low counterparty risk.” He thinks Bitcoin, commodities, and gold are assets that fit these criteria.

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Ex-New York Fed chief joins Binance.US board

by
Vince Dioquino
3 days ago

Former New York Fed compliance chief joins Binance.US board.

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Binance.US has appointed former New York Federal Reserve Bank compliance chief Martin C. Grant to its board of directors.
Binance.US said the appointment aims to boost compliance efforts and restore user trust after facing extensive regulatory scrutiny over ties to the global Binance exchange. The platform has struggled to grow its userbase in the wake of these challenges, with market data showing that Binance.US recorded only about $22 million worth of trades during the past day, compared to the $3.4 billion recorded by competitor Coinbase.
The appointment comes as the platform faces extensive regulatory scrutiny due to its ties with the global Binance exchange, which entered into a record fine settlement with U.S. authorities in 2023. This seeks to address the regulatory challenges faced by Binance.US itself as a US entity, which is facing allegations from the SEC that the platform has violated local laws due to its listing of assets considered as securities.

“The addition of a director of Martin’s caliber to the Binance.US Board reflects the strength of our business and demonstrates our commitment to maintaining the highest standards of compliance and integrity,” shares Norman Reed, interim CEO of Binance.US.

By bringing on Grant, Binance.US aims to strengthen its compliance measures and rebuild trust among its users. The platform hopes that Grant’s extensive experience in regulatory affairs and compliance will help navigate the complex legal landscape and ensure adherence to the highest standards of integrity.
As Binance.US continues to face regulatory scrutiny, the appointment of Martin C. Grant to its Board serves as a critical step in addressing the platform’s compliance challenges and demonstrating its commitment to operating within the bounds of the law. The crypto community will closely monitor the impact of this appointment on Binance.US’s ability to regain user trust and compete in the highly regulated US market.
Grant brings experience from roles like global head of regulatory affairs and integrity at JST Digital and chief compliance and ethics officer at the New York Fed between 2005-2022.

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Regulation

Senators probe CFTC chair's ties with Sam Bankman-Fried

by
Vince Dioquino
3 days ago

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Senators Warren (D, Massachusetts) and Grassley (R, Iowa) have intensified their scrutiny of CFTC Chair Behnam’s relationship with Sam Bankman-Fried, the convicted former CEO of FTX.
Warren and Grassley have recently requested detailed records of all meetings and communications between Behnam and Bankman-Fried during Behnam’s tenure. The request comes in light of Bankman-Fried’s recent sentencing to 25 years in prison for fraudulent activities at FTX. The senators are particularly interested in understanding the extent and nature of the interactions between Behnam and the disgraced CEO.
Behnam’s frequent communication with Bankman-Fried was driven by efforts to position a segment of FTX, specifically the LedgerX division. This initiative was discussed extensively within the CFTC, with Bankman-Fried himself playing a prominent role in the discussions. Following the collapse of FTX, senators, including Josh Hawley, have pressed Behnam for information on his and his staff’s engagements with Bankman-Fried, prompting further inquiries into the matter.
There is, however, the additional layer to the issue: namely Bankman-Fried’s meetings with SEC chair Gary Gensler. The two had met in 2021 at the urging of Bankman-Fried’s own father Joseph Bankman, a noted Stanford law professor who had drafted tax legislation for Elizabeth Warren herself. While Gensler remained tight-lipped about the meetings, it has been established that the two met at least twice, once in the latter half of 2021 and again on 2022 before the entire FTX debacle. This was not missed by critics of Gensler and the SEC and has understandably raised questions as to what the regulator or even Gensler himself could have done to prevent FTX’s implosion and the ensuing fallout.
On the other hand, SBF’s mother Barbara Fried, also a law professor at Stanford, leads Mind the Gap, a Democrat donor group raising donations from the tech sector. At the same time, Bankman-Fried was notably a big donor not just to the Democrats, but also the Republicans.

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Regulation

Coinbase initiates appeal against SEC on investment contract classification for digital assets

by
Vivian Nguyen
Apr. 13, 2024

Coinbase's court move could redefine SEC's crypto oversight.

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Coinbase has filed a motion to appeal a judge’s decision from last month that allowed the SEC’s lawsuit against them to proceed, said Paul Grewal, Coinbase’s chief legal officer, in an X post today. The appeal, if granted, would allow the Second Circuit Court to review the US Securities and Exchange Commission’s (SEC) authority to classify certain digital asset transactions as investment contracts, potentially suspending the ongoing trial.

Coinbase’s motion focuses on whether digital asset purchases qualify as “investment contracts” under SEC rules, a resolution that would have far-reaching implications across the digital asset industry. The firm seeks a clear ruling from a higher court to end uncertainty.
According to Coinbase, the definition of an investment contract has included the necessity of post-sale obligations, a standard upheld by both the Supreme Court and the Second Circuit for nearly a century. Despite this, the SEC has aggressively pursued a new interpretation, suggesting that the mere integration of digital assets into a token’s ecosystem could constitute an investment contract.

” In the 90 years since the federal securities laws were enacted, neither the Supreme Court nor the Second Circuit has ever found an investment contract without a post-sale obligation. But in a blitz of recent enforcement actions against the digital asset industry, the SEC has advanced the theory that no such obligation is required,” stated Coinbase’s legal defense.

This approach has sparked widespread debate among lawmakers, regulators, and industry participants, with even SEC Commissioners acknowledging the regulatory uncertainty plaguing the crypto sector, Coinbase notes. The firm argues that the SEC’s broad interpretation is creating uncertainty in an industry that has seen exponential growth and economic influence.
Coinbase’s legal defense challenges the SEC’s claims, asserting that the transactions in question lack the traditional elements of an investment contract. According to the company, the Second Circuit’s appeal is an appropriate vehicle to provide urgently needed guidance on this important legal matter.

“The application of Howey to digital asset transactions raises hard questions. That Members of Congress, Senators, and regulatory agencies have divided in answering them bespeaks the difficulty of the subject matter, and the divergent judicial outcomes illustrate the point. As a result of these divisions, a “cloud of legal uncertainty [] hangs over” the digital asset industry…This case offers the ideal vehicle for the Second Circuit to quickly and cleanly remove it,” stated Coinbase’s legal defense.

Today’s motion comes after a US court recently rejected Coinbase’s appeal in a lawsuit brought by the SEC last year. Judge Failla found the SEC’s evidence sufficient to require Coinbase’s registration as an exchange, broker, and clearinghouse.
However, she did side with Coinbase on the separate issue of their wallet product, concluding it wasn’t connected to the SEC’s securities charges.
Following the court’s dismissal, Grewal said that Coinbase would continue its legal battle against the SEC.