This month, which was cooled down during the Christmas and New Year vacation, witnessed an unexpected twist. The U.S. surprisingly dropped six out of seven charges against former FTX CEO Sam Bankman-Fried. This has ignited a huge spark within the crypto community. The rejected charges of campaign fundraising and political contributions have raised serious concerns about political sway, especially given Bankman-Fried’s previous financial involvement in U.S. politics. However, there are more notable things as well which happened this month.
Hong Kong set its sights on stablecoin regulations, underlining the growing importance of virtual assets. Binance’s historic settlement with the CFTC marked a pivotal moment, showcasing the regulatory complexities faced by major exchanges. The SEC’s rejection of Coinbase’s regulatory proposal hinted at continued scrutiny, contrasting with Enjin’s successful migration of 200 million NFTs and KuCoin Ventures’ collaboration with the TON Foundation, signalling advancements in blockchain ecosystems. As the year closed, December’s crypto chronicles set the stage for an intriguing chapter in the ever-evolving crypto narrative.
U.S. Government Drops Six Charges Against Former FTX CEO
The U.S. Government unexpectedly dropped six of seven accusations against former FTX CEO Sam Bankman-Fried. This action has sparked debate and speculation in the Bitcoin world and beyond. The denied campaign finance and political contribution allegations have raised concerns, especially given Bankman-Fried’s past funding of U.S. political parties. CoinRoutes Co-CEO and Digital Assets for Economic Freedom supporter Dave Weisberger tweeted his surprise at the lawsuit dismissal before the New Year’s Eve. He said that while unexpected, further investigation may reveal more.
Famous people like attorney John E. Deaton worried about the lawsuit dismissal’s timing, especially during an election year. In a fraud prosecution, Caroline Ellison testified that Bankman-Fried gave $10 million to the Biden Administration to “purchase access,” allegedly allowing him to see crucial people. The discussion over these advances creates uncertainty.
Hong Kong Initiates Public Consultation on Stablecoin Issuer Regulation
The Financial Services and Treasury Bureau (FSTB) and Hong Kong Monetary Authority (HKMA) have launched a public consultation on a stablecoin issuer regulation bill. The Web3 and virtual asset (VA) ecosystems depend on fiat-referenced stablecoins (FRS), hence the government wants to regulate their creators. Regulating virtual asset markets is necessary due to their growing link with the conventional financial system.
The government recommends integrating FRS issuers into the regulatory framework to prevent the monetary and financial systems from virtual asset proliferation and develop explicit protective measures. This approach prioritizes risk assessment and management and is adaptable. The legislative proposal integrates market and public feedback from last year’s “Discussion Paper on Crypto-assets and Stablecoins.” It also considers stakeholder engagement, local market conditions, and international norms.
Crypto Exchange Binance Settles with CFTC for $2.85 Billion in Landmark Case
The U.S. District Court for Northern Illinois authorized the settlement between Binance, the largest cryptocurrency exchange, and the CFTC, a historic occasion. The CFTC’s November legal conflict ended with $2.85 billion in fines on the exchange and its former CEO, Changpeng Zhao.
Zhao and Binance violated the CEA and CFTC, according to the court. Zhao must pay a $150 million civil monetary penalty, and Binance must repay $1.35 billion in illegal transaction fees. Binance must also pay the CFTC $1.35 billion. The regulatory authority and bitcoin exchange platform settled their long disagreement. The CFTC accused Binance and Zhao of violating federal regulations by establishing an illegal futures exchange in March 2023.
SEC Rejects Coinbase’s Plea for New Crypto Regulations
The SEC denied Coinbase Global’s proposal for digital asset industry regulations, a major move. Coinbase argued that the current laws are insufficient for the crypto company, but the Securities and Exchange Commission (SEC) ruled 3-2 that the restrictions are appropriate. This verdict highlights the crypto industry’s ongoing regulatory scrutiny. The Securities and Exchange Commission’s ruling dissatisfied
Coinbase, the largest US cryptocurrency exchange. Coinbase Chief Legal Officer Paul Grewal underlined the need for collaboration to create clear and beneficial regulations for consumers and American innovation. Coinbase plans to challenge the SEC’s ruling in a Philadelphia federal appeals court.
This dispute is part of a larger dispute between the cryptocurrency sector and the Securities and Exchange Commission (SEC), which classifiesJmost cryptocurrency tokens as securities. The SEC is suing various cryptocurrency companies, including Coinbase, for selling tokens it considers securities.
Enjin Completes Largest NFT Migration
Enjin made a milestone by migrating 200 million NFTs from Ethereum to the Enjin Blockchain on December 11, 2023. This large transfer includes assets from various sources, including Microsoft, showing the growing demand for blockchain efficiency and scalability in technology. NFT holders can now claim their assets on the Enjin Blockchain by clicking “Claim” on Enjin Wallet. The transfer brings benefits including Enjin’s network-wide fuel tanks, which offer free ecosystem transactions for three months.
Artists receive fair compensation through on-chain royalties, while a robust API and development platform make token inclusion into popular games easy. Atlas’ Chief Operating Officer and Enjin contributor Rene Stefancic praised the community’s dedication to progress and success through Enjin’s migration from its previous solutions. He stressed that Web3 must focus innovation, superior technology, and user experience to reach the three billion-user global gamer market.
KuCoin Ventures and TON Foundation Join Forces for TON Ecosystem Advancement
KuCoin Ventures, the investment arm of KuCoin Exchange, has partnered with the non-profit TON Foundation to promote the TON (The Open Network) ecosystem. This partnership aims to structure bitcoin exchange-public blockchain network collaboration. KuCoin Ventures will help create five TON mini-applications, focusing on payments and GameFi, to boost the ecosystem. The deal shows how blockchain may improve Web3. KuCoin Ventures will fund TON blockchain ideas, research and development, community creation, and marketing.
The collaboration shows KuCoin Ventures and the TON Foundation’s commitment to supporting the TON ecosystem’s next generation of mini-app developers. TON Foundation’s Head of Accelerator, Ian W, said this collaboration will advance mini-app development on The Open Network and enable blockchain gaming and payment solutions. The collaborations support TON’s goal of creating a decentralized, accessible digital future.
