regulation / 21 posts found
SEC Crackdown: Inside the Tokens the Commission Labeled Securities
On June 5, Web3 was sent into a frenzy when the U.S. Securities and Exchange Commission (SEC) lodged a comprehensive lawsuit against Binance. The lawsuit — which accuses the world’s largest crypto exchange of mismanagement of customer funds, among other things — has remained top of mind for all operating within the blockchain industry. Of course, the situation only got worse once the SEC came after Coinbase. Just a day after taking up arms against Binance, the agency announced that it was suing Coinbase for allegedly operating as an unregistered broker of securities, an unregistered exchange, and an unregistered clearing agency. […]
Hermès Wins NFT Trademark Lawsuit
The Alpha: It’s a big day for legal precedent in Web3, as the lawsuit between luxury brand Hermès International SA, and Mason Rothschild, the artist behind the controversial MetaBirkin NFT project, has been settled. After six days of proceedings in a Manhattan courtroom, the ruling came back that Rothschild’s sale of handbag-inspired NFTs violated Hermès’ rights to the “Birkin” trademark. A nine-person jury issued a verdict on Wednesday, February 8, awarding Hermès $133,000 in total damages and finding that Rothschild’s NFTs aren’t protected speech under the First Amendment. With regulation surrounding crypto and NFTs still vastly unestablished, this case will likely […]
The Rise and Demise of CryptoZoo: A Deep Dive Into Logan Paul’s NFT World
The start of 2023 has been rocky for Logan Paul and his NFT escapades. It seemingly all started with a multi-part video expose created by a YouTuber known as Coffeezilla (whose real name is Stephen Findeisen). In the series, Findeisen chronicles the rise and ultimate demise of Paul’s once-popular NFT project CryptoZoo, offering evidence that Paul and his team may have scammed investors. After a short spat between Paul and Findeisen, the accused celebrity eventually opted to take accountability, pledging to pay back 1,000 ETH (around $1.3 million at the time) to those who lost money on the project. But […]
BREAKING: Sam Bankman-Fried Was Just Arrested Over FTX Collapse
Moments ago, authorities in the Bahamas announced that Sam Bankman-Fried (SBF) was arrested. If you haven’t been following the FTX saga, SBF is the Founder and Former CEO of FTX, a cryptocurrency exchange that recently collapsed and lost billions of dollars. Most of the money belonged to customers. According to a press release issued by the Office of the Attorney General, SBF was brought into custody by The Royal Bahamas Police Force after the United States Attorney for the Southern District of New York shared a sealed indictment with the Bahamian government. The press release also noted that the government […]
Regulations and SEC Investigations Might Actually Be Good for NFTs
It’s time for everyone to wake up from the dream of decentralized immunity to regulatory powers. While the fight against centralization and the advocation of anonymity has long characterized the NFT space, throughout 2022 the United States Securities Exchange Commission (SEC) has made it clear that crypto and NFT regulation is imminent. With the recent news of the SEC’s probe into Yuga Labs, it feels like the delay between metaverse actions and real-world consequences is vanishing. Many in the space are wondering what the future holds for NFTs as they enter into the world of government-regulated assets. But should SEC […]
While Crypto Exchanges Seek Regulation, the SEC Eyes Punitive Steps
As tensions continue to mount between the Securities and Exchange Commission (SEC) and crypto exchanges in the U.S., Coinbase has emerged as a symbol of regulatory resistance to what it sees as an unfair and highly-flawed approach to Web3 oversight. After months of tough talk from SEC Chair Gary Gensler (who has repeatedly said he views the coin offerings on crypto exchanges as securities) and frosty interactions with Coinbase, the agency reportedly launched investigations into every U.S.-based crypto exchange this month, according to Forbes. It’s a bold move that has rattled the Web3 world. This move comes on the heels […]
A Senator Is Calling for Google and Apple CEOs to Stymie Crypto Scams
For all of Web3’s successes in celebrating diversity and raising funds for unquestionably noble causes, the Web3 space still has its fair share of bugbears — scammers. Thefts, rug pulls, and the like remain a distinct risk for anyone making their first steps into Web3. However, these bad actors don’t just look to target members of the crypto and NFT communities on their home turf via wash trades. Some have looked to gain access to users’ crypto wallets in a seemingly innocent way: via mobile apps. The lengths that scammers have gone to forcibly part users from their hard-earned crypto […]
Are NFTs Securities? A Guide to Global Policies
Any digital asset, including non-fungible tokens (NFTs), can be classified by securities regulators as a “security.” But this begs the question of whether or not a prospective buyer is potentially subjecting themselves to a country’s securities law simply by buying and selling NFTs. The industry-wide expansion into the metaverse has opened the doors to associating and integrating digital assets into new virtual worlds, making it even more likely that these assets will eventually become commercialized and potentially subject to these securities laws. So, what do countries around the world have to say about NFT transactions and their characterization as a […]
Exclusive: The IRS and SEC Eye Crypto and NFT Regulation
Will 2022 be the year of NFT regulation? With regulatory bodies and enforcement agencies in the U.S. paying close attention to the world of cryptocurrencies, digital assets, and the crimes committed within these spheres, it certainly looks like it might be. We’ve seen the FBI charge a former OpenSea employee with insider trading; the founders of the now infamous Frosties NFT project arrested for making off with $1.3 million in a rug pull; and Le Anh Tuan, founder of the doomed Baller Ape Club NFT project and community, charged with conspiracy to commit wire fraud, in addition to conspiracy to […]