Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
A former executive at FTX is planning to plead guilty to several criminal charges. The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have published a joint paper containing policy recommendations at the request of the Indian G20 presidency. Meanwhile the race for the United States’ first spot Ethereum exchange-traded fund has officially begun after new 19b-4 filings by the Chicago Board Options Exchange (CBOE).
Former FTX exec to plead guilty to criminal charges
Former FTX executive Ryan Salame plans to plead guilty to several criminal charges related to his involvement in the failed crypto exchange, according to Bloomberg.
Citing “people familiar with the case,” Bloomberg reported on Sept. 7 that Salame will plead guilty to several charges, but did not specify what they were. Previous reports indicated that prosecutors were investigating Salame for violations of campaign finance law.
Salame’s guilty plead is not unusual as many former FTX executives have rolled over on former CEO Sam Bankman-Fried. The exchange collapsed in epic fashion in November 2022, exposing an empire of fraud and deceit.
Judge Netburn: You are charged in seven counts [Count 8, campaign finance charges, is gone] How do you plead?
Bankman-Fried: Not guilty.
AUSA: We'd like to exclude time until the trial, October 3.
Mark Cohen for SBF: We'd like to raise two topics regarding the MDC— Inner City Press (@innercitypress) August 22, 2023
Last month, Bankman-Fried pleaded not guilty to fraud and money laundering charges.
Court documents from the Bahamas revealed that Salame was one of the first FTX employees to inform authorities about the commingling of funds between FTX and its sister company Alameda Research.
IMF, FSB release joint policy recommendations for crypto assets
The International Monetary Fund (IMF) and the Financial Stability Board (FSB) have published a joint paper containing policy recommendations at the request of the Indian G20 presidency. The organizations have created the paper to combine the standards and consolidate collective recommendations to provide guidance and help various jurisdictions address risks associated with crypto asset activities.
The policy paper includes recommendations for regulating activities related to stablecoins and decentralized finance (DeFi). It also describes how regulatory frameworks and policies developed by both the IMF and the FSB can interact and fit together. However, it does not set or establish new policies, recommendations or expectations for relevant authorities.
According to the paper, stablecoins which are created with the intention of holding a stable value can abruptly become volatile and hold a huge risk to financial stability. Meanwhile, when it comes to DeFi protocols, the paper argued that while the processes used to provide DeFi services may be different from traditional financial platforms, DeFi “does not differ substantially from the tranditional financial system in the functions it performs.”
The paper also noted that as DeFi attempts to replicate some functions of the traditional financial system, it also may amplify and inherit the risk and vulnerabilities in traditional systems. This may include liquidity and maturity mismatches, operational fragilities, interconnectedness and leverage. According to the paper:
“Claims of decentralisation often do not hold up to scrutiny. Presently, DeFi may exhibit unclear, opaque, untested or easy-to-manipulate governance frameworks that may expose users to risks.”
The report also reaffirmed the IMF’s stance about a blanket ban on crypto. On June 22, the IMF pointed out that banning crypto may not be effective in the long run. The IMF said that instead of banning crypto, various authorities should focus on addressing what drives the demand for crypto, including the consumers’ needs for digital forms of payment.
VanEck, ARK filings ‘officially’ start the clock for spot Ether ETFs
The race for the United States’ first spot Ethereum exchange-traded fund has officially begun after new 19b-4 filings by the Chicago Board Options Exchange (CBOE), which will “ultimately start the clock” for an SEC decision.
On Sept. 6, the CBOE filed two 19b-4 applications to the United States securities regulator, requesting for the ARK 21Shares Ethereum ETF and VanEck Ethereum ETF investment products to be listed on CBOE’s BZX Exchange.
BOOM: 19b-4 filing from @vaneck_us AND @ARKInvest/@21co__ for spot Ethereum ETFs.
This is different from the earlier Ark/21shares S-1 filing because this will ultimately start that clock we are so used to following with spot Bitcoin filings. pic.twitter.com/qP7nydc33w
— James Seyffart (@JSeyff) September 6, 2023
In a series of tweets, Bloomberg ETF analyst James Seyffart noted that as opposed to the previously submitted S-1 filings, the 19b-4 filings mean that the countdown for a decision by the SEC is now in motion.
“The Spot #Ethereum ETF Race is officially on,” Seyffart declared, estimating a final deadline around May 23, 2024.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
