1/ Big news: @phantom has received first-of-its-kind no action relief from the @CFTC. We can now connect users to regulated derivatives markets and event contracts without registering as an introducing broker.
1/ Today @BlockchainAssn FOIA'd the SEC seeking information (docs & comms) about Prometheum and the ATS.
In the midst of aggressive SEC enforcement, Prometheum gets approval for first-of-its-kind Special Purpose Broker-Dealer (SPBD) for digital asset securities.
Suspicious…
1/ Today, the @BlockchainAssn submitted a letter to the SEC’s Inspector General calling for an investigation into the circumstances surrounding Prometheum.
Although there may not be anything nefarious, suspicious circumstances beg someone to look under the hood…
Key Qs 🧵👇
1/ Today, the @BlockchainAssn filed an amicus brief in SEC v. Wahi, an enforcement action indicating a new pattern by the agency - regulation by enforcement against third parties, who have no meaningful opportunity to defend themselves.
theblockchainassociation.org/blockchain-ass…
1/ Today, @BlockchainAssn and the Crypto Freedom Alliance of Texas sued the SEC over the recently finalized Dealer Rule. The rule is arbitrary and capricious, and presents significant risk for digital asset market participants in the U.S.
tinyurl.com/ye6h3zet
Today, BA and CFAT filed a suit against the SEC asking the court to strike down their arbitrarily applied and unclear Dealer Rule expansion. This rule stifles innovation, harms the burgeoning digital asset industry, and emboldens the SEC to lead by unwritten rules and guidance.
"To avoid contaminating the process, the law requires Chair Gensler to recuse himself from any decisions regarding the initiation or continuation of an enforcement action premised on the theory that a digital asset is a security."
🙏 @FortuneCryptofortune.com/crypto/2023/06…
1/ Today, @BlockchainAssn filed a comment letter to the SEC’s proposal expanding the definition of “exchange” in Rule 3b-16.
Tl;dr:
- de facto ban on DeFi
- Exceeds statutory authority
- APA violation
- Deeply flawed cost-benefit analysis
tinyurl.com/BA-Letter
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1/ @BlockchainAssn's amicus brief provides the court with helpful context in @Grayscale's lawsuit against the SEC. By denying access to spot bitcoin ETPs, the SEC engages in an arbitrary and capricious practice of picking winners and losers among investment products. 🧵👇
1/ American Banker op-ed concerning the SEC's approach to crypto regulation. The gist: the agency's failure to provide clarity thwarts its mission to protect investors, support efficient markets, and facilitate capital formation. 🧵
1/ Today, @BlockchainAssn and @fund_defi filed an amicus brief in Van Loon v. Treasury – fighting OFAC’s unlawful sanctions of the Tornado Cash software. OFAC’s decision raises serious regulatory and constitutional questions inhibiting the rights of many Americans.
We argue:
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2/ The CEO somehow gets a seat in front of Congress and argues that Prometheum represents the compliant path for digital assets.
And they've paid $1.5+ million in sales commissions to a Chinese-affiliated entity with quite the regulatory track record.
Hmmm 🤔
3/ As we saw during the hearing and during @laurashin interview, the founder greatly misstates the law.
Prometheum’s claims are nonsense and NOT evidence of a path to compliance.
Aptly laid out by Rep. Flood.
🙏 @AlexanderGrieve for capturing the clip
For those that didn’t stick around until the end of the @FinancialCmte hearing today, this exchange between @USRepMikeFlood and @PrometheumInc CEO Aaron Kaplan is an absolute must-watch.
Flood explicitly lays out why Prometheum’s claims that their SPBD approval is evidence of a
1/ Today, @BlockchainAssn filed a comment to Treasury’s proposed broker rule.
The Proposal exceeds Treasury’s statutory authority, is overbroad and vague, and violates the APA and the Constitution - including the 1st, 4th, and 5th Amendments. 🧵
tinyurl.com/yh37czn5
