A recent enforcement action that was conducted by U. S regulators contributes to increasing attention towards decentralized finance protocols commonly known as DeFi protocols which usually remained in the regulatory limelight. Uniswap is the latest decentralized trading platform to fall under scrutiny of the Commodity Futures Trading Commission (CFTC) for accommodating unlawful derivatives trading. Earlier this month, the regulator has management penalties and stopped the discretionarily demanded operation, which it alleges are in violation of the U. S. commodity trading regulations. This is due to the increasing attention paid to regulating decentralized finance front-end, as the authorities are trying to apply traditional legislation to them.
Meanwhile, Rio Tinto says it has diversified its management team to ensure that it has the right skills and expertise required in the current market as it seeks to oppose changes proposed by Riot Platforms’ to. Riot, which is now the largest shareholder in Bitfarms with a 19 percent stake, is a Haligonian firm. owns only 9% of the equity share and has been pushing for further changes in corporate governance such as election of independent directors. Bitfarms, however, has denied that Riot provoked the recent changes in its board of directors stating that the changes were for the good of the company.
Uniswap Accused of Trading in the US Illegally via Derivatives
CFTC recently sued Uniswap stating that this Decentralized exchange was involved in unauthorized Derivatives trading. Pursuant to the charges, Uniswap facilitated trading of unregulated derivatives products contrary to the U. S. laws on commodity trading. The protocol developer has been further penalized through a $175,000 civil penalty with a prohibition on engaging in any activity that will be in violation of CECA. This case shows what the regulators have prepared to apply existing laws to the DeFi platforms and left more questions regarding the further future of such trends.
Ripple and SEC on hold a $125 Million Judgement and Suggest that they may plan to Appeal
Ripple Labs and the SEC have mutually decided to suspend a $125 million fine charged to Ripple over the legal tussle between the regulatory agency and the financial firm. The court ruling had established that in some circumstances XRP was not a security and this stay may well lead to an SEC appeal. Ripple has deposited $ 139 million into a bank account for the payment of a judgment amount while it has placed 111% into a bank account for the same judgment amount in case of appeal. The two sides are now pegging their hearing on the green light from the court regarding this deal which if approved may prolong the legal battle that started in 2020.
US Regulator Again Delays Decision on Eco-Friendly Bitcoin ETF
The SEC has once again postponed its decision on an ETF that aims to combine spot Bitcoin with carbon credit futures. Initially filed by Tidal Investments, the ETF seeks to offer exposure to Bitcoin while offsetting carbon emissions through futures tied to emission allowances in the European Union and California. The SEC’s latest delay extends the decision deadline to November 21, 2024, continuing a pattern of regulatory hesitations around eco-focused financial products.
SEC Says It Could Challenge FTX Crypto Repayment Plan
The SEC has indicated that it may challenge payments made to creditors of the defunct crypto exchange FTX if those repayments are made using stablecoins. In an August 30 filing, SEC lawyers stated that while creditor repayments made with stablecoins may not be technically illegal, the agency reserves the right to challenge payments made with U.S.-dollar pegged crypto assets. Many creditors have called for in-kind payments, but FTX’s latest liquidation plan has proposed paying out claims based on the U.S. dollar value of assets at the time of the exchange’s bankruptcy, either in cash or with stablecoins.
The United States regulator postpones a decision on an environmentally friendly Bitcoin exchange-traded fund
The SEC, has again delayed to make a decision on an ETF that seeks to combine spot Bitcoin with carbon credit futures. Originally launched by Tidal Investments, the ETF aims to invest in bitcoin while reducing its carbon footprint through contract for differences in emission allowances of the EUA and California. The decision deadline for the latest delay by the SEC has moved it to November 21 2024, a worrying sign to regulatory hesitance in eco-focused financial products.
The repayment plan for FTX’s crypto customers has been criticized: Here’s what the SEC said – The SEC has signaled its intention to challenge payment made to the creditors of the now-collapsed crypto exchange FTX if the reimbursement is in stablecoins. The lawyers of the SEC in a filing submitted on August 30 pinpointed that while creditor repayments made with stablecoins are not necessarily unlawful, the agency remains capable of questioning payments made with U. , -dollar pegged crypto assets. Some creditors have demanded in-kind payments while the latest plan to liquidate FTX assets seeks to compensate claims in U. S. dollars equivalent to the value of the assets at the time of the exchange’s collapse and in stablecoins if necessary.
