Gensler's $2.6bn question 🤑

The eToro action is just the beginning of September actions, say experts.

Author

Liam Kelly
September 13, 2024

GM. Liam here. 

The Securities and Exchange Commission hit crypto trading app eToro this week.

Alongside a $1.5 million settlement, the Israeli company also agreed to stop US customers from trading all cryptocurrencies except for Bitcoin, Bitcoin Cash, and Ethereum.

Experts, including Kristin Smith, CEO of crypto lobbying group Blockchain Association, say the industry should expect even more actions from the SEC this month.

Why?

The Commission’s fiscal year ends on September 30, and the more work a government agency can show it's doing, the more money it can ask for from Congress.

And SEC Chair Gary Gensler has a big ask. He’s requesting $2.6 billion for 2025 to build out his team and rein in what he calls “the Wild West of crypto markets.”

Historically, the SEC has issued the most enforcement actions in September for the last five years, report Joanna Wright and Ben Weiss.

To be clear, this isn’t exclusive to crypto actions. The SEC oversees all financial markets in the US.

So far, the SEC has issued 12 actions. On average, it’s issued 44 in September over the past five years.

Note: Last week’s edition of The Roundup has been updated to include comments from a Parity spokesperson.

Anchorage announced it’s joining the ETF custody game, a $60 billion market currently dominated by crypto exchange Coinbase. Thomas Carreras explains why it matters for investors.

Worldcoin is in hot water again, this time in Singapore. Authorities are investigating seven individuals over alleged illegal trading of Worldcoin accounts — a violation of the city-state’s payment regulations writes Osato Avan-Nomayo reports.

So long socialfi heavyweight Friend.tech. Heralded as the next-gen social media platform powered by crypto, the project announced it would be shutting down development this week. But it's hard to imagine that its founders are unhappy, Tim Craig reports.

Post of the week

It’s not all fire and brimstone. The eToro action also strengthens the case that Bitcoin and Ethereum aren’t securities. That’s some consolation, right?

DL News is an independent news organisation that provides original, in-depth reporting on the largely misunderstood world of cryptocurrency and decentralised finance. From original stories to investigations, our journalism is accurate, honest and responsible.

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