No clarity on US crypto regulation

in partnership with

NRI - Nomura Research Institute

Logo of NRI - Nomura Research Institute

Founded in 1965, Nomura Research Institute (NRI) is a leading global provider of system solutions and...

View more
ESG
Q+
20/09/2023Article
profile picture of Sadakazu Osaki

Sadakazu Osaki

NRI

Head of Research, Center for Strategic Management & Innovation

SEC’s crypto clampdown

US Securities and Exchange Commission (SEC) has launched a controversial regulatory clampdown on the crypto industry. The proximate catalyst behind the move was last November’s collapse of FTX, a major crypto exchange.

Founded in 2019, FTX achieved rapid growth fueled largely by advertising campaigns featuring famous athletes, including MLB superstar Shohei Otani. Its success, however, proved illusory when its wunderkind founder and CEO, Sam Bankman-Fried, was arrested on fraud and money laundering charges. Its FTX Token nose-dived in response, shaking investor confidence in the entire cryptoasset complex.

Alarmed by the FTX debacle, the SEC has brought a series of enforcement actions against major crypto exchanges, beginning with Kraken in February 2023. It alleged that Kraken’s staking-as-a-service program was an illegal securities offering, prompting Kraken to discontinue the service. Staking is the act of depositing cryptoassets with a crypto platform in exchange for a share of cryptoasset income earned by verifying new transaction blocks added to the blockchain. Staking has become popular among investors as an easy way to grow cryptoasset holdings.

In June 2023, the SEC charged Coinbase and Binance with securities law violations. It also sought to freeze some of Binance’s assets on the grounds of improper custody of customer assets. Crypto industry insiders have criticized the SEC’s enforcement actions against leading crypto exchanges as a crackdown intended to stifle the industry.

Want to keep reading?

Become a Qorus member to get access to all our insights

Related news & insights

SME Banking
23/12/2024News

Empowering SMEs: OCBC partners to transform cross-border trade

XTransfer, the world’s leading B2B cross-border trade payment platform, has partnered with OCBC, Southeast Asia's second-largest financial services group, to...

Digital Reinvention
19/12/2024Article

AI data and ethics: Financial services firms must ready themselves for looming AI laws

Banks and insurers in the EU need to move quickly to ensure their AI systems comply with looming regulatory requirements....

SME Banking
17/12/2024News

Santander partners with CloudPay to transform employee pay in Spain

By introducing CloudPay NOW, a Pay On-Demand service, Santander is offering small and medium-sized enterprises (SMEs) the ability to provide...

16/12/2024News

U.S. Bank launches new travel center with Booking.com for credit cardholders

Cardholders can now easily book hotels, flights, and rental cars through a state-of-the-art platform powered by advanced booking technology and...

Digital Reinvention
16/12/2024News

Vipps MobilePay launches the world’s first alternative to Apple Pay on iPhone

This groundbreaking launch challenges Apple's dominance in mobile payments, marking a significant step forward for consumer choice and competition.

15/12/2024News

TBC Uzbekistan launches Osmon Card, its first revolving credit product

The Osmon Card promises to redefine the credit card experience with rapid approval, free issuance and delivery, a 55-day interest-free...

08/12/2024News

Virtual cards gain popularity among French consumers

A recent survey conducted by BforBank, Crédit Agricole's online banking arm, highlights the growing adoption of virtual payment cards in...

07/12/2024News

MCB unveils Juice Tap: A new era in digital payments

This innovative feature, accessible through the MCB Juice app, allows customers to complete transactions by simply bringing their NFC-enabled smartphone...