Law & Policy

What happened in the crypto industry last week (Sep 30 - Oct 6)?

1/ Bitwise Registers XRP ETF Trust:
Bitwise has registered a trust organization for an XRP-based ETF. A company representative confirmed preparations for launching the ETF. This registration is the first step towards listing and trading ETF shares. Subsequently, Bitwise submitted an S-1 application to the SEC for a spot XRP ETF, with Coinbase Custody serving as the custodian.

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1/ Bitwise Registers XRP ETF Trust:
Bitwise has registered a trust organization for an XRP-based ETF. A company representative confirmed preparations for launching the ETF. This registration is the first step towards listing and trading ETF shares. Subsequently, Bitwise submitted an S-1 application to the SEC for a spot XRP ETF, with Coinbase Custody serving as the custodian.
https://www.sec.gov/Archives/edgar/data/2039525/000121390024084334/ea0216197-s1_bitwise.htm

3/ BBVA Plans Own Stablecoin with Visa:
Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) intends to create its own stablecoin in partnership with Visa by 2025. BBVA has not yet decided whether the stablecoin will be backed by deposits, money market funds, or fiat currencies such as euros or US dollars. Testing of the asset is planned for 2025.

3/ BBVA Plans Own Stablecoin with Visa:
Spanish bank Banco Bilbao Vizcaya Argentaria (BBVA) intends to create its own stablecoin in partnership with Visa by 2025. BBVA has not yet decided whether the stablecoin will be backed by deposits, money market funds, or fiat currencies such as euros or US dollars. Testing of the asset is planned for 2025.
https://fortune.com/crypto/2024/10/03/bbva-plans-to-launch-stablecoin-in-2025-with-support-from-visa/

4/ SEC Appeals Ripple Fine Decision:
The SEC has appealed a district court’s decision that reduced Ripple Labs’ fine from $2 billion to $125 million for selling tokens to institutional investors. The judge determined that for 1,278 violating transactions, the total fine should not exceed $125.03 million.

5/ Kalshi Resumes Political Betting:
The court has allowed Kalshi, a prediction market, to resume accepting bets on political events, effectively lifting the administrative suspension. However, the CFTC may still appeal this decision.
https://x.com/mansourtarek_/status/1841485986271760709
https://storage.courtlistener.com/recap/gov.uscourts.dcd.261465/gov.uscourts.dcd.261465.47.0.pdf
https://www.coindesk.com/policy/2024/09/13/kalshis-new-political-prediction-markets-halted-as-cftc-appeals-loss/

6/ IcomTech Founder Sentenced:
Damian Williams, founder of the cryptocurrency Ponzi scheme IcomTech, has been sentenced to 121 months in prison for conspiracy to commit fraud using electronic means. The prosecution alleged that IcomTech was marketed as a legitimate cryptocurrency mining and trading company, but victims were defrauded through investment products and access to an income tracking portal.
https://www.justice.gov/usao-sdny/pr/founder-cryptocurrency-ponzi-scheme-icomtech-sentenced-121-months-prison#:~:text=Damian%20Williams%2C%20the%20United%20States,the%20cryptocurrency%20Ponzi%20scheme%20IcomTech.

7/ Gemini Closes Canadian Accounts:
Crypto exchange Gemini has announced it will close all Canadian customer accounts by December 31, 2024. Clients have 90 days to withdraw their funds before all accounts are closed. In February 2023, the Canadian Securities Administrators required all crypto trading platforms to sign a “pre-registration agreement” to continue operating in the country.

7/ Gemini Closes Canadian Accounts:
Crypto exchange Gemini has announced it will close all Canadian customer accounts by December 31, 2024. Clients have 90 days to withdraw their funds before all accounts are closed. In February 2023, the Canadian Securities Administrators required all crypto trading platforms to sign a “pre-registration agreement” to continue operating in the country.
https://cointelegraph.com/news/crypto-exchange-gemini-close-all-customer-accounts-canada
https://www.asc.ca/-/media/ASC-Documents-part-1/Regulatory-Instruments/2023/02/6082629-CSA-Notice-21-332-Crypto-Trading-Platforms.ashx

8/ IMF Urges El Salvador to Reevaluate Crypto Regulations:
The International Monetary Fund has called on El Salvador to revise its crypto asset regulations and reduce Bitcoin usage. This statement was made during a press conference on October 3, 2024. El Salvador legalized Bitcoin in September 2021.
https://www.reuters.com/technology/imf-says-bitcoin-remains-key-element-el-salvador-program-talks-2024-10-03/#:~:text=%22What%20we%20have%20recommended%20is,in%20a%20scheduled%20press%20conference.

8/ IMF Urges El Salvador to Reevaluate Crypto Regulations:
The International Monetary Fund has called on El Salvador to revise its crypto asset regulations and reduce Bitcoin usage. This statement was made during a press conference on October 3, 2024. El Salvador legalized Bitcoin in September 2021.
https://www.reuters.com/technology/imf-says-bitcoin-remains-key-element-el-salvador-program-talks-2024-10-03/#:~:text=%22What%20we%20have%20recommended%20is,in%20a%20scheduled%20press%20conference.
https://x.com/nayibbukele/status/1435023474494410753

4/ SEC Appeals Ripple Fine Decision:
The SEC has appealed a district court’s decision that reduced Ripple Labs’ fine from $2 billion to $125 million for selling tokens to institutional investors. The judge determined that for 1,278 violating transactions, the total fine should not exceed $125.03 million.
https://www.courtlistener.com/docket/19857399/978/securities-and-exchange-commission-v-ripple-labs-inc/
https://storage.courtlistener.com/recap/gov.uscourts.nysd.551082/gov.uscourts.nysd.551082.974.0_1.pdf