Grayscale Wins Court Case Against SEC, Bitcoin ETF Approval Likely

A federal court on Tuesday ruled that the Securities and Exchange Commission acted arbitrarily when it denied Grayscale Investments’ attempts to convert its Grayscale Bitcoin Trust (ticker: GBTC) into an exchange-traded fund. The decision is a major victory for Grayscale and the broader crypto industry, and it makes it much more likely that the SEC will approve a spot Bitcoin ETF in the near future. Several companies, including BlackRock and Fidelity, have also applied to launch a spot Bitcoin ETF. The SEC has previously opposed the approval of a spot Bitcoin ETF, arguing that the spot market for Bitcoin is too vulnerable to fraud and manipulation. However, the court’s decision in the Grayscale case suggests that the SEC may be willing to approve a spot Bitcoin ETF if it can be shown that the market is sufficiently regulated. The approval of a spot Bitcoin ETF would be a major milestone for the crypto industry and could help to legitimize Bitcoin as an investment asset. It would also make it easier for investors to buy and sell Bitcoin, which could lead to increased demand for the cryptocurrency. The price of Bitcoin has already surged in response to the court’s decision, and it is likely to continue to rise if the SEC does approve a spot Bitcoin ETF. However, some analysts remain skeptical that a Bitcoin ETF will lift all boats. They argue that a spot Bitcoin ETF would simply commoditize Bitcoin trading and could lead to lower prices for the cryptocurrency. Only time will tell whether the approval of a spot Bitcoin ETF will be a positive or negative development for the crypto industry. But one thing is for sure: the court’s decision in the Grayscale case is a major step forward for Bitcoin and the broader crypto ecosystem.

SEC Delays Decision on Spot Bitcoin ETF Applications for Another 45 Days

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on all spot bitcoin exchange-traded fund (ETF) applications for another 45 days, until October. The decision comes after the SEC was ordered by a federal appeals court to review its rejection of Grayscale's application to convert its Grayscale Bitcoin Trust into an ETF.

The SEC has been hesitant to approve a spot bitcoin ETF, citing concerns about market manipulation and the lack of regulation in the cryptocurrency space. However, the appeals court ruling found that the SEC's reasons for rejecting Grayscale's application were "arbitrary and capricious."

The delay in the SEC's decision is a setback for the cryptocurrency industry, which had hoped that a spot bitcoin ETF would provide a more accessible way for investors to buy and sell bitcoin. However, the delay also gives the SEC more time to review the applications and address the concerns that it raised in its rejection of Grayscale's application.

It remains to be seen whether the SEC will approve a spot bitcoin ETF in October. However, the delay is a sign that the SEC is taking the matter seriously and is not ready to approve a spot bitcoin ETF without addressing its concerns.

In the meantime, investors who want to invest in bitcoin can still do so through a variety of other ways, such as buying bitcoin directly or through a cryptocurrency exchange. However, a spot bitcoin ETF would offer a more convenient and regulated way for investors to buy and sell bitcoin.

The SEC's decision to delay its decision on spot bitcoin ETF applications is a disappointment for the cryptocurrency industry, but it is not a death knell for the prospects of a spot bitcoin ETF. The SEC is still reviewing the applications and it is possible that the regulator will approve a spot bitcoin ETF in the future.

Elon Musk's X Obtains Payments Licenses in 7 US States, Including Crypto

Elon Musk's social media platform, X (formerly Twitter), has obtained money or currency transmitter licenses in seven US states, including Maryland, New Hampshire, and Rhode Island. These licenses allow X to process payments, including cryptocurrency payments.

The licenses are a necessary step for X to offer crypto payments, as well as other payment services such as wire transfers and electronic payments. Musk has hinted that he plans for X to become an "everything app," and the payments licenses suggest that he may be looking to expand X's payment offerings beyond traditional fiat currencies.

The licenses also allow X to operate in these states, as money transmitter licenses are required by law in most US states. Western Union and PayPal also have money transmitter licenses in these states.

The news of X's payments licenses comes as the cryptocurrency industry is growing rapidly. Crypto payments are becoming increasingly popular, and X's entry into the market could help to legitimize cryptocurrency as a form of payment.

It remains to be seen what specific crypto payment services X will offer, but the licenses suggest that it is at least considering the possibility. The company's plans for X are still evolving, but the payments licenses are a significant step towards making X a more comprehensive and versatile platform.

Crypto Casino Stake Resumes Services Just 5 Hours After $41M Hack

Crypto betting platform Stake has resumed deposits and withdrawals and resumed services for users only five hours after the platform was hacked to the tune of $41.3 million, blockchain security firms estimate.

The hack occurred on September 4, when unauthorized transactions were made on Stake's ETH/BSC hot wallets. Stake confirmed that user funds remain safe, but have not yet shared the cause of the exploit or how much was stolen.

Blockchain security firm Beosin calculated the total loss to be $41.35 million, which included $15.7 million on Ethereum, $7.8 million on Polygon and another $17.8 million from the BNB Smart Chain.

The hack is a major setback for Stake, which is one of the largest crypto casinos in the world. However, the company's quick response in reopening services is a positive sign for users.

The hack also highlights the risks of using crypto casinos, which are often targeted by hackers. Users should be aware of the risks before depositing funds into any crypto casino.

Gala Games Co-Founders Accuse Each Other of Theft and Corporate Waste

The co-founders of Gala Games, a blockchain games developer, are suing each other in a Utah district court. Gala CEO Eric Schiermeyer alleges that company director Wright Thurston stole $130 million in GALA tokens in 2021. Thurston, on the other hand, alleges that Schiermeyer engaged in "corporate waste" by making transactions that cost the company millions of dollars.

The lawsuits are a major setback for Gala Games, which is one of the most popular blockchain gaming platforms. The company has raised over $500 million in funding and has a valuation of over $3 billion.

The lawsuits are also a reminder of the risks associated with investing in blockchain projects. These projects are often young and untested, and there is a risk of fraud or mismanagement

It is unclear how the lawsuits will be resolved. However, they are likely to have a significant impact on Gala Games and the blockchain gaming industry as a whole.

SEC's Secret Court Filing in Binance Case Raises Concerns of More Bad News

The Securities and Exchange Commission (SEC) has filed a sealed motion in its case against Binance, the cryptocurrency exchange that already faces U.S. accusations of wrongdoing. The filing, which includes more than 35 exhibits, has some wondering whether more bad news is about to hit the industry giant.

The SEC is not required to explain why it filed the motion under seal, but there are a few possible reasons. One possibility is that the SEC is trying to avoid interfering with a criminal investigation by the U.S. Department of Justice. Another possibility is that the SEC is worried about putting a witness or company at risk.

Whatever the reason, the filing has raised concerns that the SEC may be building a stronger case against Binance. This could be bad news for the exchange, which is already facing a number of challenges, including regulatory scrutiny in several countries.

It is important to note that the SEC's filing does not necessarily mean that Binance is guilty of any wrongdoing. The exchange has denied the SEC's allegations and has said that it is cooperating with the investigation. However, the filing does suggest that the SEC is taking the case seriously, and it could lead to more trouble for Binance in the future.

Court Dismisses Class Action Lawsuit Against Uniswap

A class action lawsuit against Uniswap was dismissed by a federal judge on August 29, 2023. The plaintiffs alleged that Uniswap was responsible for "rampant fraud" on the exchange, and also pushed for Uniswap to register with the Financial Industry Regulatory Authority.

The judge dismissed the lawsuit, finding that the plaintiffs had failed to establish that Uniswap was liable for the alleged fraud. The judge also found that the plaintiffs' claims were "devoid of factual support."

The ruling is a victory for Uniswap and for the decentralized finance (DeFi) industry as a whole. It suggests that DeFi platforms are not liable for the actions of users who misuse them.

The ruling also highlights the challenges of regulating DeFi. The judge noted that the current state of cryptocurrency regulation leaves victims of fraud with "no recourse." This is a problem that Congress and regulators will need to address if they want to protect investors in the DeFi space.

Bitboy Crypto's Ben Armstrong Removed from Company Amid Substance Abuse and Personal Conduct Issues

Ben Armstrong, the popular web3 YouTube personality known as Bitboy Crypto, has been removed from the company and Bitboy Crypto brand. The parent company of Hit network, BJ Investment Holdings, made the announcement on Monday, citing Armstrong's "relapse into substance abuse" and "emotional, physical, and financial damage" he has done to the company and its employees.

Armstrong has a long history of contentious and colorful behavior. In April, he was banned from Twitter for threatening a lawyer who was suing him for promoting the bankrupt crypto exchange FTX. He also missed a court hearing in the case to go on a cruise.

The Bitboy Crypto brand said that it wishes Armstrong the best and is hopeful for the future of the company. However, the removal of Armstrong is a major setback for the brand, which has over 3.3 million subscribers on YouTube.

The news of Armstrong's removal comes at a time when the cryptocurrency industry is facing increasing scrutiny from regulators. The SEC has recently taken action against several crypto influencers, including Bitboy Crypto's former co-host, Dave Portnoy.

The removal of Armstrong is a reminder of the risks associated with investing in cryptocurrencies. These investments are often volatile and unregulated, and there is a risk of fraud or mismanagement. Investors should do their own research before investing in any cryptocurrency.

Australia's Crypto Bill Rejected, Further Consultation Recommended

The Senate Economic Legislation Committee in Australia has rejected a crypto bill led by a pro-crypto politician, stressing the need for further refinement.

The committee recommended that the Australian Government continue to consult with industry on the development of fit-for-purpose digital assets regulation in Australia.

The bill, which was introduced by Liberal Party Senator Andrew Bragg, was designed to provide more clarity for crypto investors and to protect consumers. However, the committee found that the bill was not ready for approval and needed further work.

The committee's decision is a setback for the crypto industry in Australia, which has been calling for clear regulations for some time. However, the committee's recommendation that the government continue to consult with industry is a positive sign, and it is hoped that this will lead to the development of a comprehensive and effective regulatory framework for crypto in Australia.

The rejection of the bill is also a reminder of the challenges of regulating a new and rapidly evolving industry like crypto. The committee noted that the bill was "complex and technical" and that it would be "difficult to implement effectively."

Despite the challenges, it is important for governments to develop clear regulations for crypto. This will help to protect consumers and investors, and it will also help to promote innovation in the industry

Chinese Court Rules That Virtual Assets Are Legal Property Protected by Law

A People's Court in China has ruled that virtual assets are legal property protected by law, despite a blanket ban on cryptocurrencies imposed by Beijing in 2021.

The court's report acknowledged that virtual assets have economic attributes and thus can be classified as property. The report also suggested that cases involving crimes related to virtual assets should be treated separately to achieve a balanced protection of personal property rights and social and public interests.

This is the latest in a series of rulings by Chinese courts that have established that virtual asset holders have property rights. In September 2022, a lawyer suggested that crypto holders in China are protected by the law in case of theft, misappropriation or breach of a loan agreement despite the ban on crypto. Later in May 2022, a Shanghai court affirmed that Bitcoin qualifies as virtual property and thus is subject to property rights.

The Chinese government's stance on cryptocurrency has been a long-standing one, but it appears to be softening in recent years. This is evident from the rise in China's Bitcoin mining share, which dropped to zero post-blanket ban but rose to take the second spot within a year.

The latest ruling by the People's Court is a further indication that the Chinese government is gradually coming to terms with the reality of cryptocurrency and its potential benefits. It remains to be seen how the government will ultimately regulate the industry, but this ruling is a positive step in the right direction.