Investment Education

According to Bloomberg, the Swiss National Bank (SNB) is exploring the use of tokenized central-bank money for transaction settlement. The institution's wholesale Central Bank Digital Currency (CBDC), which operates on the infrastructure of Swiss stock-market provider SIX, allows banks to use tokenized central-bank money to settle transactions such as bond purchases on the same platform. This method eliminates credit risk and enables users to leverage digital assets, potentially offering features like programmability. SNB's President, Thomas Jordan, spoke at a Bank for International Settlements conference in Basel on Monday. He outlined two other approaches to transaction settlement with tokenized assets that the SNB is considering. However, he noted that both methods have their pros and cons. The Real-Time Gross Settlement (RTGS) link might limit the potential to enhance the current system, while the backed private token money could pose regulatory challenges as it isn't a direct claim on the central bank but would be used as such. Jordan did not specify whether the SNB's pilot CBDC project would continue beyond its current end-date in June. He previously stated that the project has been successful so far.

According to PANews, Patrick McHenry, the Chairman of the House Financial Services Committee, has indicated that the US Congress may vote on the 'Financial Innovation and Technology Act of the 21st Century' (FIT21) before the end of May. FIT21 is set to grant the Commodity Futures Trading Commission (CFTC) jurisdiction over crypto commodities and the Securities and Exchange Commission (SEC) jurisdiction over cryptocurrencies provided in investment contracts. Furthermore, FIT21 has established rules for companies that must register with the SEC and CFTC. These rules include requirements related to customer disclosure, asset protection, and operations. The legislation aims to provide a clear regulatory framework for digital assets, addressing long-standing market regulation and consumer protection issues. It is reported that FIT21 is the most comprehensive cryptocurrency legislation passed by a congressional committee to date, marking a significant milestone in digital asset regulatory legislation.

According to PANews, Wells Fargo, the third-largest bank in the United States, has disclosed in a filing to the U.S. Securities and Exchange Commission (SEC) on May 10th that it holds 2,245 shares of Grayscale GBTC. In addition to this, Wells Fargo also holds a small amount of ProShares BITO and shares of Bitcoin ATM provider Bitcoin Depot. This information was initially reported by Bitcoin Magazine.

According to CryptoPotato, the legal dispute between Ripple and the US Securities and Exchange Commission (SEC) has escalated, with recent filings focusing on the nature of a key witness's declaration. Speculations are surfacing about a potential settlement this summer as both parties await a judicial ruling. The legal case between Ripple and the SEC, which began in December 2020, has seen increased activity in recent weeks. This is largely due to the trial process commencing on April 23. Shortly after this date, Judge Sarah Netburn issued a new scheduling order focused on the motion for remedies and entry of final judgment. On April 29, the SEC filed its opposition to Ripple's motion to strike new expert materials, centering on testimony from key witness Andrea Fox, known as the 'Fox Declaration'. Ripple had previously argued that the declaration was an unsolicited expert opinion, while the SEC described it as 'standard summary evidence in support of calculations for disgorgement'. The SEC insisted that the declaration was not an expert report and did not rely on specialized experience. It claimed that the 'Fox Declaration' consisted of data derived from Ripple's own documents, including tax returns and financial statements, which could be useful in determining the lawsuit's outcome. In response, Ripple filed a letter supporting its initial request, stating that the SEC failed to demonstrate that the declaration was summary evidence rather than expert testimony. Ripple further argued that even if Andrea Fox could be considered a summary witness, the SEC failed to disclose her before the end of the discovery process. Earlier this week, the SEC filed its remedies reply brief and supporting exhibits under seal. The redacted and public version of the information was presented a day later. American lawyer Jeremy Hogan stated that this marked the end of the briefs phase and that the legal battle has now entered a stage with fewer developments, with both parties awaiting the judge's ruling. Hogan previously predicted that the lawsuit might officially close this summer following a $100 million settlement, significantly less than the $2 billion penalty sought by the SEC and much more than the $10 million Ripple agreed to pay.

According to PANews, the US House of Representatives has voted in favor of a resolution aimed at overturning the Securities and Exchange Commission's (SEC) cryptocurrency custody accounting standards. The vote was passed with a result of 228-182, with majority support from Republicans and 21 Democrats voting in favor. The announcement, first issued in 2022, has sparked controversy over the past year. It requires cryptocurrency custody companies to record customer-held cryptocurrencies as liabilities on their balance sheets. The crypto industry fears this move could prevent banks from protecting digital assets. At present, it is unclear whether this resolution will become law. However, the White House issued a 'government policy statement' on Wednesday, stating that President Biden will veto the resolution. The White House stated that 'restricting the SEC's ability to maintain a comprehensive and effective financial regulatory framework for crypto assets will bring serious financial instability and market uncertainty.' The resolution may be submitted to the Senate Banking Committee and subsequently voted on by all members of the Senate.

According to Foresight News, Indonesia's Commodity Regulatory Authority, Bappebti, has established a dedicated committee to oversee the cryptocurrency industry. The committee, composed of representatives from Bappebti, various government departments, cryptocurrency exchanges, clearing institutions, associations, scholars, and relevant practitioners, will analyze industry reports, manage a central database, assess cryptocurrency asset risks, and have the authority to recommend adding or removing assets from the list.

According to PANews, Ripple Labs has made significant progress in its legal dispute with the U.S. Securities and Exchange Commission (SEC). The SEC has taken a step in the remedial phase of the lawsuit, submitting its final response. In its recent response to the remedial measures outline, the SEC questioned Ripple Labs' claim that the blockchain startup's actions were not reckless and that the legal status of XRP should not have 'broad uncertainty', despite the court's previous rejection of this 'fair notice' defense. Since the XRP lawsuit was initiated in 2020, Ripple Labs has not violated any rules, but the SEC still maintains its stance on whether Ripple Labs may take similar actions in the future. According to the remedial measures brief, Ripple Labs tried to downplay its responsibility, while emphasizing its cooperation with the U.S. SEC since XRP's initial public offering in 2013. However, the U.S. SEC stressed that, according to the law, even if Ripple Labs has not violated any regulations since 2020, it is still possible to violate them again. The SEC believes that Ripple Labs' assurances about changing its behavior after the lawsuit are not sufficient to avoid a ban. According to the SEC, Ripple Labs' claim to follow legal guidance and restructure future XRP sales according to the lawsuit order is misleading. The SEC believes that Ripple Labs misread the lawsuit order and failed to accept its impact on compliance. The reply to the remedial measures refuted Ripple Labs' claim about sales to qualified investors outside the United States, as these defenses have been abandoned at the summary judgment stage. In addition, Ripple's claims about changes to ODL sales contracts were rejected because these contracts already lack certain restrictions deemed to be violations. Ultimately, the SEC believes that Ripple's claims do not negate the need to issue a ban to prevent future violations. In response to the SEC's reply in the remedial measures brief, Ripple's Chief Legal Officer Stuart Alderoty commented that the SEC's reputation continues to decline. He emphasized that international financial regulators with a robust cryptocurrency licensing framework might be surprised at the SEC's approach to equating its efforts with issuing fishing licenses. Alderoty criticized the SEC for not consistently applying the law. He is optimistic about resolving the XRP lawsuit. While the cryptocurrency community eagerly awaits the final outcome of the case, analysts expect the final judgment to be made around September.

According to Foresight News: Robinhood Crypto, LLC (RHC), has been handed a Wells Notice by the U.S. Securities and Exchange Commission (SEC) staff. The notice concerns the company's practices including cryptocurrency listing, custody, and platform operations. The SEC staff have made a "preliminary determination" in favour of recommending the SEC-level charges against RHC. This comes following potential violations of Sections 15(a) and 17A of the Securities Exchange Act of 1934, as amended by the SEC.   

According to CryptoPotato, Ripple is contesting the US Securities and Exchange Commission's (SEC) classification of the 'Fox Declaration' as standard evidence, arguing that it is expert testimony. This disagreement has escalated the ongoing legal battle between the two entities. The 'Fox Declaration' is a statement from Andrea Fox, which Ripple claims is an expert opinion, while the SEC describes it as 'standard summary evidence in support of calculations for disgorgement.' The SEC also asserts that the 'Fox Declaration' includes information derived from Ripple's own documents, such as tax returns and financial statements, which could be crucial in determining the case's outcome. Ripple recently filed a letter supporting its initial request, maintaining that the SEC failed to prove that the 'Fox Declaration' is summary evidence rather than expert testimony. The company argues that Fox uses technical or specialized knowledge to analyze Ripple's records, third-party evidence, and expert reports, draw conclusions, and calculate disgorgement, prejudgment interest, and discount amounts. Ripple also contends that if Fox is considered a summary witness, the SEC failed to disclose her before the end of the discovery process, and therefore her testimony should not be considered in the case's resolution. Despite the ongoing trial, it is still unclear when the Ripple v SEC case will conclude or if the parties will reach a mutual agreement. American lawyer Jeremy Hogan predicts a possible $100 million settlement this summer. The SEC initially sought a $2 billion fine from Ripple for alleged XRP sales violations, but Ripple argues that the penalty should not exceed $10 million. The case's outcome could significantly impact Ripple's native token's price and the broader crypto market.

According to BlockBeats, Wall Street Journal reporter Nick Timiraos, often referred to as a 'Federal Reserve mouthpiece', suggested on social media on May 1st that the upcoming Federal Reserve meeting might be another 'wait-and-see' session. However, this time, the focus could shift towards the Federal Reserve's stance on inflation and the risk of wage increases, rather than on downward risks or benign inflation. Timiraos cautioned that if officials use the same phrasing when answering similar questions, it could inadvertently lead to repetition or overemphasis in their statements.