SEC’s New Approach to Crypto Securities

The Securities and Exchange Commission (SEC), under the leadership of Chair Paul Atkins, is embarking on a mission to redefine which tokens are classified as crypto securities. This strategic initiative, known as “Project Crypto,” promises a shift away from the enforcement-heavy approach of previous administrations. The aim is to create a “token taxonomy” based on the Howey Test, reflecting the dynamic nature of digital assets.

Atkins emphasized that this new framework does not imply leniency. The SEC will continue to oversee and address cases of fraud and tokenized securities. Moreover, this initiative is designed to complement legislative efforts by Congress, offering a holistic approach to market regulation.

Circle’s Arc Token Exploration

Meanwhile, Circle is making headlines with its exploration of a native token for its Arc Layer 1 blockchain. As the company reported a substantial growth in USDC supply, this move could significantly enhance its network’s utility. In Q3 alone, Circle achieved a total revenue of $740 million, with USDC circulation skyrocketing to $73.7 billion, marking a 108% increase year-over-year.

Circle’s management also raised its 2025 revenue outlook, projecting up to $100 million in “other revenue” streams, driven by subscriptions, services, and transactions. The potential development of a native token could further solidify Circle’s position in the stablecoin-centric ecosystem.

Visa’s Innovative Pilot Program

Visa is also making waves with its new pilot program allowing businesses to send payouts in USDC. This initiative targets creators, freelancers, and gig workers, offering near-instant, cross-border payments. Initially, only USDC is supported, but Visa plans a broader rollout by 2026.

Stablecoins are becoming a central element of Visa’s strategy, as evidenced by over 130 stablecoin-linked card programs across 40 countries. The pilot significantly expands Visa Direct’s capabilities, providing users with fast and borderless access to earnings.

JPMorgan’s JPM Coin on Base

JPMorgan has officially launched its USD-denominated deposit token, JPM Coin (JPMD), on the Ethereum Layer 2 network Base. This development follows a successful pilot phase and proof-of-concept testing. Institutional clients can now benefit from 24/7, near-instant onchain settlements.

JPM Coin represents existing JPMorgan bank deposits on a public blockchain, promising regulated, KYC-compliant transactions. The bank is also considering expanding JPMD to other blockchains and exploring a euro-denominated version.

As the digital asset landscape continues to evolve, these developments highlight the importance of regulatory clarity and innovation in the crypto space. With SEC’s new crypto securities guidelines and Circle’s potential Arc token, the industry is poised for significant advancements.

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The case, lodged by the SEC against Gemini Trust and Genesis Global Capital, accused the firms of engaging in an unregistered offer and sale of securities to US retail investors from February 2021 to November 2022. With this resolution, both parties have requested the court to indefinitely stay all litigation, pending review and approval by the SEC.

Gemini Trust Case: A Closer Look

The initial complaint by the SEC highlighted that investors were funneled into Genesis’s assets via Gemini’s Earn Program with the expectation of earning interest. The SEC alleged that Gemini Trust and Genesis raised billions of dollars’ worth of crypto assets without the necessary registration, leaving investors without crucial information.

According to the complaint, Gemini and Genesis failed to provide the full range of information required by federal securities laws, opting instead for selective disclosures. This lack of transparency was central to the SEC’s case, underscoring the need for regulatory compliance in crypto markets.

Resolution and Future Implications

The agreement in principle is a critical step in resolving the case, which also saw a $21 million settlement announced in 2024 between the SEC and Genesis. Acting SEC Chair Mark Uyeda had previously informed Gemini Trust that no further enforcement actions would be recommended in a separate investigation.

This resolution could pave the way for clearer regulatory guidelines and bolster investor confidence in the crypto sector. It highlights the ongoing efforts of the SEC to ensure that crypto companies adhere to securities laws to protect investors.

Political Ties and Market Movements

Gemini Trust’s co-founders, Cameron and Tyler Winklevoss, are noted for their political connections, having supported US President Donald Trump during his 2024 campaign. Their influence extends into crypto policy, as they were present during the signing of the GENIUS stablecoin bill. They also advocated for Trump’s reconsideration of Brian Quintenz’s nomination for the US Commodity Futures Trading Commission chair.

Amid these developments, Gemini Trust’s initial public offering, which reportedly raised $425 million, marks another significant milestone. This IPO demonstrates investor confidence and highlights the firm’s market position despite its regulatory challenges.

The resolution between Gemini Trust and the SEC not only marks a turning point in the regulatory landscape but also exemplifies the potential for cooperation and compliance within the evolving crypto industry.

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Understanding Liquid Staking

Liquid staking refers to the process where cryptocurrency holders can earn rewards by staking their assets while maintaining liquidity. Unlike traditional staking, liquid staking allows users to access their funds at any time, providing flexibility and potential financial benefits.

SEC’s Stance on Liquid Staking

In a recent announcement, the SEC stated that certain liquid staking activities do not qualify as securities offerings. This statement provides much-needed clarity, as it delineates the boundaries of the SEC’s jurisdiction over these activities. By referencing the Securities Act of 1933 and the Securities Exchange Act of 1934, the SEC aims to provide a framework that aids in understanding which activities might require regulatory compliance.

Implications for the Cryptocurrency Market

This clarification by the SEC is a monumental step forward for the cryptocurrency sector. Companies engaging in liquid staking can now better align their practices with regulatory expectations, reducing the risk of legal entanglements. For investors, this means more confidence in participating in liquid staking activities without the fear of inadvertently violating securities laws.

Industry Reactions

The response from the industry has been largely positive. Paul Atkins, the SEC Chairman, emphasized that this statement is part of a broader effort to provide clear regulatory guidance for digital assets. “Today’s staff statement on liquid staking is a significant step forward in clarifying the staff’s view about crypto asset activities that do not fall within the SEC’s jurisdiction,” he remarked.

Future of Liquid Staking and SEC Regulation

As the cryptocurrency landscape continues to evolve, the SEC’s role in regulating these assets is becoming increasingly critical. This recent guidance on liquid staking is just one of many steps the SEC is taking to provide clearer guidelines for the industry. Stakeholders can expect further updates as the SEC continues to refine its regulatory framework to adapt to new technologies and market trends.

In conclusion, the SEC’s clarification on liquid staking activities is a crucial development for the cryptocurrency market. It not only aids in aligning practices with regulatory expectations but also fosters a more transparent and secure environment for investors. As the industry advances, ongoing dialogue between regulatory bodies and market participants will be essential in shaping the future of digital asset regulation.

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The purpose of the meeting was to examine how open standards like ERC-3643, as well as compliance frameworks such as Chainlink’s Automated Compliance Engine (ACE), can merge blockchain technology with traditional regulatory requirements. The ERC-3643 token standard is designed to be the backbone for compliant capital markets on the Ethereum network and is championed by the ERC-3643 Association and firms such as Chainlink. Meanwhile, Chainlink ACE is a smart-contract-oriented framework for tokenized assets like securities or real-world assets (RWAs).

According to Dennis O’Connell, president of the ERC-3643 Association, the SEC’s approach to the meeting was noticeably different from previous encounters. He said the task force was very receptive and eager to position the U.S. as a leader in the sector.

O’Connell also noted that the SEC displayed a willingness to consider industry-led standards, despite previously overlooking the significance of open standards in blockchain. He said, “We presented our argument on why, like other sectors including traditional finance, standards are crucial for expanding crypto in the U.S. and facilitating the onboarding of securities onto the blockchain.”

The industry representatives pitched proposals on all key aspects of a regulatory framework for tokenized securities during the meeting, including identity, compliance, registry, and control. While the task force did not take a firm position on tokenized securities, they were open to learning how new blockchain technologies can address concerns related to identity, control, and compliance.

The meeting was the culmination of months of preparatory work and signifies a “significant progress for the industry,” according to O’Connell. The ERC-3643 Association and its partners intend to maintain open communication with the SEC Crypto Task Force and other U.S. government agencies, with the aim of catching up with global regulation and eventually leading in blockchain adoption for capital markets.

In a follow-up to the meeting, SEC Chair Paul Atkins made positive comments about tokenization in the U.S. Bloomberg reported that Atkins is considering an innovation exemption within its framework to foster tokenization. He stated, “If it can be tokenized, it will be tokenized,” illustrating the inevitability of asset movement to the blockchain.

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The exchange, in a May 16 submission to a New York federal court, emphasized that its terms of service, agreed upon by the claimants, include a clause mandating arbitration for all disputes, and another clause that prohibits users from instigating class actions against the firm.

“The Court should rule that the Plaintiffs must arbitrate all claims that arose after February 20, 2019, even if the Court persists in its initial decision concerning claims that arose prior to this date, and that the class-action waiver in the 2019 Terms of Use is valid for all of the Plaintiffs’ claims,” Binance stated.

In March, Judge Andrew Carter rejected Binance’s bid to send all of the class action claims to arbitration for users who purchased tokens on the platform between April 1, 2017, and February 20, 2019. He also partially turned down the motion for users who bought tokens post-2019, until a verdict could be reached on the extent of the arbitration clause’s application. Binance, in its recent filings, argued that it updated its terms in February 2019 to incorporate the arbitration clause, and a prior version of the terms had a clause enabling Binance to modify the terms as necessary without individual notice.

In March 2022, Binance secured a dismissal of the case by Judge Carter after arguing that it is not subject to U.S. securities laws as it lacks a physical headquarters in the country. However, in March 2024, the U.S. Court of Appeals for the Second Circuit overturned this decision, and the Supreme Court later declined to hear Binance’s appeal in January of that year.

Binance has seen its legal difficulties in the U.S. intensify since mid-2023, culminating in a Securities and Exchange Commission lawsuit for the sale of unregistered securities, which was settled for $4.3 billion in November 2023. Binance also faced a class action in Canada in April 2024 for alleged violations of securities laws after announcing its exit from the country in May 2023.

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This call to action is relevant to those who have suffered significant losses in Bakkt within the period from March 25, 2024, to March 17, 2025. The objective of this move is to potentially lead the ongoing Bakkt Holdings Securities Fraud Lawsuit in collaboration with Faruqi & Faruqi, LLP.

Investors are encouraged to either login or create a free account to access more details about this unfolding crypto news.

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The post Investors of Bakkt Holdings Inc. (BKKT) Urged to Address Securities Fraud Lawsuit Before Deadline appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

The lawsuit was filed in the United States District Court for the Southern District of New York. It represents all individuals and entities who have bought or otherwise obtained Bakkt securities between March 25, 2024, and March 17, 2025 – a period under close scrutiny. Investors have until June 2, 2025, to submit an application to the Court for the position of lead plaintiff in the lawsuit.

The firm encourages all investors who have stake in Bakkt during the aforementioned period to get in touch. This call to action suggests the gravity of the situation and highlights the importance for all affected parties to step forward.

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Located in SAN FRANCISCO, the news was issued on March 18, 2025. Investors first learned about these possible adverse circumstances on Mar. 23, 2023, when Hindenburg Research published a highly critical report about the company. The information in this report has sparked the current securities class action.

To read the full details of this news, create a free account or log in.

The post Urgent Notice for Block, Inc. (XYZ) Shareholders: Securities Class Action Lead Plaintiff Deadline Today appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Jomkwan Kongsakul, the Deputy Secretary-General of the Thai SEC, highlighted that the successful execution of this platform could potentially enhance the efficiency of the domestic capital market by eliminating current obstacles.

As per the SEC official, acquiring bonds from the primary market can take up to two weeks before they become tradable in the secondary market, leading to significant inefficiencies. Moreover, bond issuers are obligated to handle large volumes of manual data, resulting in further delays.

“Future regulations will be introduced to ease the issuance of electronic securities and online purchases of debentures,” stated Kongsakul.

The Thai SEC’s goal is to completely digitize the local bond trading system, encompassing settlement, trading, investor registration, and return payments for both primary and secondary markets.

The plan is to issue digital securities in Thailand in two forms — traditional products that are digitalized for the trading platform, and electronic securities created on the upcoming platform. The SEC has already greenlit four digital token projects and is currently evaluating two more. Additionally, preliminary discussions have been initiated with five other parties.

The SEC official also revealed the regulator’s plan to permit private sector firms to create their own independent chains, provided they comply with a unified standard set by the SEC.

“Multiple chains for trade may exist in the future. Trading across all systems via Distributed Ledger Technology (DLT) is connected by a shared ledger, expected to be finalized soon,” added Kongsakul.

Last month, the Thai SEC was reportedly considering the approval of Bitcoin exchange-traded funds on local exchanges to align with global trends. This followed the regulator’s launch of a regulatory sandbox for cryptocurrency businesses in August of the previous year.

Please note: The Block operates independently and aims to provide objective, impactful, and timely information about the crypto industry. This article is intended for informational purposes only and should not be considered as legal, tax, investment, financial, or other advice. © 2024 The Block. All Rights Reserved.

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