CNBC Crypto World brings you the latest news and daily updates from the digital currency markets, offering insights into the future of crypto with high-profile interviews, in-depth explainers, and unique stories from the dynamic world of cryptocurrency. In today’s episode, Wyoming Senator Cynthia Lummis discusses feedback on her proposed bill to create a strategic Bitcoin reserve, and she provides an update on the progress of U.S. crypto regulation efforts.
In a major development, a Telegram-linked crypto token has seen a sharp decline after the CEO associated with the project was arrested in France. This arrest has caused significant turmoil in the token’s market value, highlighting the volatile nature of the cryptocurrency space.
Following the taping of Monday’s show, a spokesperson from the U.S. Securities and Exchange Commission (SEC) responded to CNBC’s inquiry regarding the court’s recent decision to deny Kraken’s motion to dismiss the SEC’s lawsuit against the crypto exchange. The SEC spokesperson stated, “Once again, a court confirmed that the framework used to identify securities for nearly 80 years still applies, regardless of the labels used. Investors in crypto assets offered or sold as securities should get the same protections as investors in other securities, even when they are traded using intermediaries. Platforms for trading such crypto assets should register and ensure they have safeguards against fraud and manipulation, the commingling of customer assets, and conflicts of interest. Until they do so, investors will continue to get hurt.”
Later on Monday afternoon, a Kraken representative responded to CNBC’s request for comment on whether the company intends to respond to the SEC’s complaint, stating, “Kraken intends to answer the Complaint with multiple defenses to the SEC’s inconsistent and legally erroneous positions. We look forward to victory at trial.”
This situation underscores the ongoing regulatory challenges and legal battles within the cryptocurrency industry. The unfolding events around the SEC’s enforcement actions and the responses from crypto platforms like Kraken are critical for investors to follow, as they could shape the future landscape of digital asset regulation in the United States.