Terraform Labs Settles with SEC; Ripple Seeks Lesser Penalty, Turkey Ponders Crypto Tax, Australia Approves First Spot Bitcoin ETF
Summary:
Terraform Labs is to pay the SEC $4.47 billion as settlement over the Terra ecosystem's collapse. Post-settlement, the firm plans to cease operations and sell key projects. Meanwhile, Ripple's lawyers are seeking a fitting penalty against the SEC's proposed $2 billion charges. In another development, President Biden plans to change financial regulatory leadership, while Turkey considers a 0.03% crypto trading tax. Lastly, Australia approves its first-ever spot Bitcoin ETF on its largest stock exchange, the ASX.
In accordance with a verdict handed down after Terraform Labs and its co-founder were implicated in the collapse of the Terra ecosystem and the loss of investor assets valued at $40 billion, the firm has agreed to pay the U.S Securities and Exchange Commission (SEC) a settlement amounting approximately to $4.47 billion. Following this settlement, Terraform Labs, under the leadership of CEO Chris Amani, will cease operations and intends to put its key projects up for sale; the community will be given control of the Terra blockchain.
Elsewhere, Ripple, a blockchain payment services firm, is seeking a more "fitting" penalty in a lawsuit with the SEC; its lawyers have made the call on the heels of Terraform's settlement with the regulator. The SEC has proposed Ripple pay an estimated $2 billion for disgorgement, pre-judgement interest and civil penalties, with Ripple's defense arguing for a cap of $10 million for its penalty.
Conversely, the SEC has refuted Ripple’s arguments, pointing out that comparing Terraform's $420 million penalty to its "$33 billion gross sales" wasn't a valid comparison, as the penalty was considered against "violative conduct's" profits, valued at over $3.5 billion. Ripple's penalty, according to the SEC, should amount around $102.6 million, equating to nearly 12% of Ripple’s profits subject to disgorgement. This, according to the SEC, would fulfill penalty laws.
Simultaneously, President Joe Biden is aiming to make leadership changes in the financial regulatory sector by nominating new leaders for the SEC, the Federal Deposit Insurance Corporation (FDIC), the Treasury Department and the Financial Stability Oversight Council. Christy Goldsmith Romero of the Commodity Futures Trading Commission (CFTC) is expected to be nominated as Chair Martin Gruenberg's successor at FDIC, whilst CFTC Commissioner Kristin Johnson is anticipated to become the next Assistant Secretary for Financial Institutions at the Treasury Department. Meanwhile, Caroline Crenshaw will sustain her post as a commissioner at the SEC.
Over in Europe, Turkey is adjusting its stance on levying taxes on crypto and stock gains previously denied. The government now proposes specific transaction taxes as part of an extensive reform in their fiscal structure, specifically a 0.03% tax on crypto trading, with the intent of narrowing the nation’s budget gap resulting from earthquakes in 2023 and establishing a revised blueprint for financial regulation.
Down under in Australia, the Australian Securities Exchange (ASX), the country's biggest stock exchange, has approved the first spot Bitcoin (BTC) exchange-traded fund (ETF) which is set to begin trading on June 20. VanEck, the investment firm, will launch the spot Bitcoin ETF named the VanEck Bitcoin ETF (VBTC). The ASX has previously seen two Bitcoin ETFs launch, including the recently approved Monochrome Bitcoin ETF (IBTC) which now trades on the Cboe Australia exchange, the country’s second largest stock exchange.
Published At
6/17/2024 10:05:00 PM
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