The SEC Votes to Modernize Regulatory Framework for Derivatives Use

The US Securities and Exchange Commission (SEC) will enhance the regulatory framework for derivatives use by registered investment companies after passing a vote to either change or amend existing rules. As part of the new framework–which covers mutual funds, exchange-traded funds (ETFs), and closed-end funds–operators must undertake to implement a written derivatives risk management program. A Modern Approach to Derivatives Regulation The rule changes, which open the doors for more leveraged ETFs, will also permit a fund to enter into reverse repurchase agreements and similar financing transactions, as well as…

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Cryptocurrency ETFs: SEC Wants to Facilitate Tokenized Products

The U.S. Securities and Exchange Commission (SEC) wants to facilitate tokenized exchange-traded funds (ETFs), according to chairman Jay Clayton. The agency is collaborating with other U.S. regulators to determine how to regulate different crypto products. SEC Open to Tokenization of ETFs SEC Chairman Jay Clayton talked about the commission’s approach to regulating crypto products during a panel discussion hosted by the Chamber of Digital Commerce earlier this month. The event, entitled “Two Sides of the American Coin: Innovation & Regulation of Digital Assets,” also features acting Comptroller of the Currency…

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Grayscale’s Ethereum Trust Attains SEC Reporting Company Status

Grayscale Investments says the registration statement on Form 10 that it filed with the U.S. Securities and Exchange Commission (SEC) on behalf of the Ethereum Trust has become effective. This means Ethereum Trust is now an official SEC reporting company and the second digital currency investment product to achieve the milestone. Grayscale’s BTC Trust (GBTC) is the first investment product to attain the status after its filing became effective on January 21 of 2020. An organization becomes a SEC reporting company or public company upon “registration pursuant to Section 12(g)…

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ETH 2.0 represents a material risk to Grayscale’s Ethereum Trust, says SEC filing

According to the latest SEC disclosure by the Grayscale Ethereum Trust, or ETHE, the impending transition of Ethereum (ETH) to the proof-of-stake consensus represents a risk that could have a “material adverse effect” on its shares. The ETHE recently filed an application with the regulator to become an SEC-reporting company. Companies of this nature are required to discuss the risk factors that may have an adverse impact on the their performance within all quarterly and annual reports. One section, meant to outline potential risks for the fund’s future, outlines that…

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Rapper TI Cryptocurrency Fraud: Charged and Fined $75,000 by SEC

Rapper TI and four other people, including film producer Ryan Felton, have been charged by the U.S. Securities and Exchange Commission (SEC) over fraudulent token sales. TI, or Tip as the rapper is also known, is also fined $75,000 by the securities regulator. Rapper TI and Film Producer Charged The SEC announced Friday the charges against rapper and actor Clifford Harris Jr. (often known as TI or Tip), film producer Ryan Felton, and three others over two fraudulent initial coin offerings (ICOs). The SEC also charged two companies, Flik and…

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Grayscale Investments’ Ethereum Trust Filed With the SEC to Obtain Reporting Status

The digital currency asset manager Grayscale told investors on Thursday that the firm has publicly filed a Registration Statement on Form 10 with the Securities and Exchange Commission (SEC) for the company’s Ethereum Trust. The recent filing is voluntary and if the SEC approves the registration, the Ethereum Trust will be the second crypto asset investment vehicle to obtain the status of a reporting company by the SEC. Established in 2013 by Digital Currency Group, Grayscale Investments has been around for quite some time now. The firm manages a number…

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Grayscale Ethereum Trust Files To Become An SEC Reporting Company

On August 6, Grayscale Ethereum Trust filed to become an SEC reporting company. Amidst the Ethereum (ETH) bull run, Grayscale Investments voluntarily decided to make its Ethereum Trust an SEC reporting company. The company’s best known investment product is a Bitcoin Trust that holds around 400,000 Bitcoin (BTC). Additionally, its Ethereum Trust currently has 1.9 million ETH in its possession. Together, this represents $746 million in assets under management. As with other Grayscale products, Coinbase is acting as a custodian. Grayscale noted that the filing is under review. If approved,…

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CFTC Is Waiting on SEC to Allow Futures Trading of More Digital Assets, Says CFTC Chairman

In a July 7 interview with predecessor Jim Newsome, current Chairman of the Commodity Futures Trading Commission (CFTC) Heath Tarbert ran down a list of pending concerns standing between cryptocurrencies and the long-awaited promised land of regulatory clarity. Securities regulation and the CFTC’s purview Tarbert was careful to outline the distinction between the work of the CFTC and its elder brother regulator, the Securities and Exchange Commission, or SEC.  The determination of whether a digital asset is a security is “the sole province of the SEC,” Tarbert explained. “If their…

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SEC Commissioner Sees Increasing Demand for Cryptocurrency

Crypto-friendly commissioner with the U.S. Securities and Exchange Commission (SEC), Hester Peirce, said there is an increase in demand for cryptocurrency as investors seek to diversify their portfolios. The commissioner has been an avid proponent of the SEC approving bitcoin exchange-traded funds (ETFs). Growing Interest for Cryptocurrency SEC Commissioner Hester Peirce, also known in the crypto community as “Crypto Mom,” talked about cryptocurrency and digital dollars during a livestream discussion with Crypto Finance Conference St. Moritz on Tuesday. Noting that the covid-19 pandemic has affected all industries, including cryptocurrency, she…

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US SEC Allows $10B Hedge Fund to Offer Access to CME Bitcoin Futures

A secretive yet reportedly highly lucrative hedge fund now has the green light to invest in Bitcoin (BTC) futures markets.  In a brochure originally dated March 30, the United States regulator the Securities and Exchange Commission (SEC) confirmed that Renaissance Technologies’ Medallion Funds now have access to the burgeoning Bitcoin futures scene. Medallion Funds gets BTC futures go-ahead According to the literature, Renaissance will offer access to cash-settled contracts from CME Group, one of the two oldest-running Bitcoin futures providers. “The Medallion Funds are permitted to enter into bitcoin futures…

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