SEC-Binance Legal Battle Continues; Bitcoin Miners Face Profitability Concerns Post-Halving
Summary:
The legal conflict between the US Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance continues despite a settlement reached previously. In other news, financial services firm Cantor Fitzgerald has warned that Bitcoin miners could face unprofitability if Bitcoin's price does not substantially rise post-halving. Furthermore, the SEC has delayed its decision on whether to approve Grayscale's Ether ETF.
An ongoing legal battle between the US Securities and Exchange Commission (SEC) and Binance continues to brew, even after the recent settlement between the crypto exchange and the regulatory watchdog. Also, according to Cantor Fitzgerald, Bitcoin miners could face unprofitable mining outcomes if Bitcoin's value doesn't take a significant leap after the halving. Furthermore, the SEC has postponed the decision to greenlight Grayscale's Ether (ETH) exchange-traded fund (ETF).
Court documents reveal that the dispute between the SEC and Binance revolves around the documentation that the exchange should provide to the regulatory body. In a joint status report from January 25, the SEC voiced concerns about outstanding aspects of discovery from BAM Trading Services, Binance.US's parent company.
The regulatory watchdog demanded extensive records from Binance concerning its asset liquidity and custody. Allegations regarding a potential "backdoor" enabling Binance.US to access customer funds were also raised by the SEC.
Binance resolved its disputes with the SEC last November, agreeing to a hefty settlement of $4.3 billion. As part of this settlement, CEO Changpeng Zhao agreed to relinquish his position and now awaits a potential prison sentence of up to 18 months.
Cantor Fitzgerald issued a warning to Bitcoin miners, stating that some of the biggest publicly traded Bitcoin miners could face profitability issues if the value of Bitcoin doesn't experience a significant upswing post-halving. An article published by Matthew Shultz, CleanSpark's co-founder and executive chairman, citing Cantor Fitzgerald, suggests that prominent Bitcoin miners might incur financial strain due to increased expenses surpassing mining revenues.
The report singled out Argo Blockchain, a UK-based miner, and Florida's Hut 8 Mining as potentially unprofitable after the halving if Bitcoin's current price remains unchanged.
The SEC has chosen to defer its decision on Grayscale's Ether ETF proposal, and now invites public opinion on the matter. According to a notice dated January 25, the securities regulator plans to conduct further proceedings before deciding on approving the trading of the Ether product.
This delayed response follows 15 days after the SEC's approval of nine Bitcoin ETFs, allowing Grayscale to convert its Bitcoin Trust into an ETF. However, Grayscale's Bitcoin ETF experienced significant investment withdrawals within nine trading days.
Published At
1/26/2024 10:23:13 PM
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