Author: Kevin Helms

Billionaire Paul Tudor Jones Now Prefers Crypto Over Gold as Inflation Hedge

Billionaire Paul Tudor Jones Now Prefers Crypto Over Gold as Inflation Hedge

Billionaire hedge fund manager Paul Tudor Jones says that bitcoin is currently “winning the race against gold.” He added that the cryptocurrency is his preferred inflation hedge over gold.
Paul Tudor Jones Chooses Bitcoin Over Gold
Paul Tudor Jones, the founder of asset management firm Tudor Investment Corp., talked about bitcoin being his preferred hedge against inflation in an interview with CNBC Wednesday. He said:
Clearly, there’s a place for crypto. Clearly, it’s winning the race against gold at the moment … It would be my preferred one over gold at the moment.
“I’ve got crypto in single digits in my portfolio,” he continued. “I do think we are moving into an increasingly digitized world.”
Jones said he is worried about rising inflation, noting that it’s posing a major threat to the U.S. financial markets and the recovering Covid-hit economy.
The price of bitcoin surpassed all-time highs Wednesday after the first bitcoin futures exchange-traded fund (ETF) in the U.S. started trading on the NYSE. Gold lost 8% over the past 12 months while bitcoin gained 437%.
The billionaire investor was asked to comment on investing in a bitcoin ETF as a way to get exposure to the cryptocurrency. Admitting that he is not “a real expert on ETFs,” Jones said:
I think a better way to get in would be to actually own the physical bitcoin, to take the time to learn how to own it … I think the ETF would be fine. I think the fact that it is SEC-approved should give you great comfort.

He was also asked if the approval of an ETF means that the regulators are saying that crypto is here to stay. Jones replied:
I think crypto is here to stay.
He proceeded to explain the reason the U.S. is “the most prominent economic power in the world is because we unleash our individual entrepreneurism and creativity.”
In contrast, he said, “China is doing the exact opposite. That place is on an economically slow boat to the south pole.”
The billionaire fund manager previously said that bitcoin was a store of wealth, like gold. He began recommending BTC for portfolios early last year. In October 2020, he said that he saw massive upside in bitcoin and likened investing in the cryptocurrency to investing in early Apple or Google.
What do you think about Paul Tudor Jones’ comments about bitcoin and gold? Let us know in the comments section below.

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US Senators Urge Facebook to Discontinue Crypto Wallet Pilot Citing ‘Insufficient’ Ability to Keep Consumers Safe

US Senators Urge Facebook to Discontinue Crypto Wallet Pilot Citing ‘Insufficient’ Ability to Keep Consumers Safe

A group of U.S. senators has asked Facebook CEO Mark Zuckerberg to discontinue his company’s crypto wallet pilot and commit to not bringing the cryptocurrency Diem to market. “Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient,” the lawmakers said.
US Senators Urge Facebook to Stop Crypto Wallet Pilot
U.S. Senators Brian Schatz, Sherrod Brown, Richard Blumenthal, Elizabeth Warren, and Tina Smith wrote a letter to Facebook CEO Mark Zuckerberg regarding the company’s cryptocurrency project Tuesday after the social media giant launched a pilot for its crypto wallet Novi.
Facebook has chosen the Nasdaq-listed crypto exchange Coinbase as its custody partner for the pilot. “Novi users who can participate in the pilot can acquire pax dollar (USDP) through their Novi account, which Novi will hold on deposit with Coinbase Custody. Novi users will then be able to transfer USDP between each other instantaneously,” Coinbase explained.
Citing several scandals involving Facebook, the senators wrote:
Given the scope of the scandals surrounding your company, we write to voice our strongest opposition to Facebook’s revived efforts to launch a cryptocurrency and digital wallet, now branded ‘Diem’ and ‘Novi,’ respectively.
The letter explains that Facebook has said on many occasions that it would not launch a digital currency absent federal financial regulators’ approval.
The lawmakers noted that “Despite these assurances, Facebook is once again pursuing digital currency plans on an aggressive timeline and has already launched a pilot for payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape — not only for Diem specifically, but also for stablecoins in general.”

The letter also points out that “In addition to the risks products like Diem pose to financial stability, you have not offered a satisfactory explanation for how Diem will prevent illicit financial flows and other criminal activity.”
“Facebook‘s decision to pursue a digital currency and payments network is just one more example of the company ‘moving fast and breaking things’ (and in too many cases, misleading Congress in order to do so). Time and again, Facebook has made conscious business decisions to continue with actions that have harmed its users and the broader society,” the letter continues.
The senators further wrote:
Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient.
“We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market,” the lawmakers concluded.
What do you think about U.S. lawmakers attempting to stop Facebook’s crypto wallet pilot? Do you agree that Facebook cannot be trusted? Let us know in the comments section below.

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Cboe Acquiring Erisx to Enter Cryptocurrency Spot and Derivatives Markets

Cboe Acquiring Erisx to Enter Cryptocurrency Spot and Derivatives Markets

Cboe is acquiring Erisx to enter the crypto spot and derivatives markets. “With Erisx, in a single step, Cboe is able to enter the digital asset spot, data, derivatives, and clearing ecosystem. Now is the right time to fully embrace and help define this emerging asset class,” said Cboe’s chief operating officer.
Cboe Entering Crypto Spot and Derivatives Markets
Cboe Global Markets Inc. (Cboe: CBOE) announced Wednesday that it has agreed to acquire Eris Digital Holdings LLC (Erisx).
Erisx’s futures exchange and clearing house are regulated by the Commodity Futures Trading Commission (CFTC). In addition, its clearing house is registered with the Financial Crimes Enforcement Network (FinCEN) and licensed in many U.S. states and territories.
Noting that “Erisx operates a U.S. based digital asset spot market, a regulated futures exchange, and a regulated clearing house,” the announcement details:
Ownership of Erisx provides Cboe with entry to digital asset spot and derivatives markets, including clearing and settlement.
“With Erisx, in a single step, Cboe is able to enter the digital asset spot, data, derivatives, and clearing ecosystem,” said Chris Isaacson, chief operating officer of Cboe. “Now is the right time to fully embrace and help define this emerging asset class.”
Erisx’s product suite includes multiple cryptocurrencies, stablecoins, physically delivered bitcoin and ether futures, and cash-settled futures. The acquisition is expected to close in the first half of 2022, pending regulatory approvals.
Cboe offered bitcoin futures back in 2017 but pulled the product in March 2019. The company now plans to operate a digital asset business as Cboe Digital with the help of Digital Advisory Committee, which will be formed to advise Cboe on the ongoing development of the Eris spot and derivatives markets. The committee’s members will include DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos, Robinhood, Virtu Financial, and Webull.

Tom Jessop, president of Fidelity Digital Assets, opined: “The Cboe-Erisx combination represents an attractive opportunity to collaborate with a global exchange operator who can bring increased regulatory proficiency, resilient technology and product expertise to digital asset markets. We look forward to collaborating with Cboe Digital.”
Matthew McDermott, Global Head of Digital Assets at Goldman Sachs, expressed his support, saying:
This is an exciting development for institutional adoption of cryptocurrencies, and we look forward to finding ways to work closely with the newly created group, Cboe Digital.
What do you think about Cboe acquiring Erisx to enter the crypto spot and derivatives markets? Let us know in the comments section below.

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Treasury Says Crypto Reduces Efficacy of US Sanctions, Seeks More Funding

Treasury Says Crypto Reduces Efficacy of US Sanctions, Seeks More Funding

The U.S. Department of the Treasury says that the growing use of crypto assets challenges the efficacy of American sanctions. “We are mindful of the risk that, if left unchecked, these digital assets and payments systems could harm the efficacy of our sanctions,” the Treasury Department explained.
Treasury Says Crypto Threatens Efficacy of U.S. Sanctions
The U.S. Department of the Treasury released its 2021 Sanctions Review Monday. “Technological innovations such as digital currencies, alternative payment platforms, and new ways of hiding cross-border transactions all potentially reduce the efficacy of American sanctions,” the report details, elaborating:
While sanctions remain an essential and effective policy tool, they also face new challenges including rising risks from new payments systems, the growing use of digital assets, and cybercriminals.
“We are mindful of the risk that, if left unchecked, these digital assets and payments systems could harm the efficacy of our sanctions,” the Treasury Department stated.
To “mitigate those challenges and bolster the effectiveness of Treasury’s role in sanctions moving forward,” the report provides several recommendations.
One of them is “modernizing Treasury’s sanctions technology, workforce, and infrastructure.” The Treasury Department “must have the right expertise, technology, and staff to support a robust and effective sanctions policymaking and implementation process,” the report emphasizes, adding:
Treasury should invest in deepening its institutional knowledge and capabilities in the evolving digital assets and services space to support the full sanctions lifecycle of activities.

On Tuesday, Wally Adeyemo, deputy secretary of the Treasury, told lawmakers that the Biden administration’s financial intelligence and sanctions units need significantly more funding and staff to combat national security threats, including those arising from ransomware and cryptocurrency markets, the Wall Street Journal reported.
“One of the most important areas for us, frankly, is ensuring that we have a workforce that understands these issues going forward,” Adeyemo said, noting:
Many of these crypto exchanges and cybercriminals that facilitate ransomware exist outside of the United States and have an impact here.
Do you think cryptocurrency challenges the efficacy of U.S. sanctions? Let us know in the comments section below.

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Chainalysis Adds Bitcoin to Balance Sheet — Its First Cryptocurrency Acquisition

Chainalysis Adds Bitcoin to Balance Sheet — Its First Cryptocurrency Acquisition

Blockchain data platform Chainalysis has announced that it is adding bitcoin to its corporate investment portfolio. This is the company’s first acquisition of cryptocurrency, the CEO revealed. Chainalysis is valued at $4.2 billion.
Chainalysis’ First Acquisition of Cryptocurrency
Blockchain data analytics firm Chainalysis announced Tuesday the addition of bitcoin to its balance sheet.
Chainalysis will acquire bitcoin using the brokerage services of the New York Digital Investment Group (NYDIG), the bitcoin investment arm of Stone Ridge Asset Management. NYDIG will also provide custody of the coins purchased. Chainalysis has been NYDIG’s compliance technology partner since 2018.
“Digital assets have emerged as an alternative asset class for consumers, enterprises, governments, banks, and financial institutions,” Chainalysis noted, adding that it “is laser-focused on its commitment to building trust in cryptocurrency as a digital asset.”
Michael Gronager, co-founder and CEO at Chainalysis, commented:
We are thrilled to be adding bitcoin to our corporate investment portfolio … This is Chainalysis’ first acquisition of cryptocurrency, and we will continue to pursue other digital assets as potential future investments.

Chainalysis raised $300 million in the past year, with the most recent fundraising round valuing the company at $4.2 billion, the blockchain data firm added.
A growing number of companies have added bitcoin to their balance sheets. According to a curated list of bitcoin treasuries, the public corporation that has acquired the most BTC is Microstrategy, which is currently holding 114,042 bitcoins. Elon Musk’s electric car company, Tesla, came second with about 42,000 BTC.
What do you think about Chainalysis adding bitcoin to its balance sheet? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Gary Gensler Explains Why SEC Approves a Bitcoin Futures ETF

Gary Gensler Explains Why SEC Approves a Bitcoin Futures ETF

SEC Chairman Gary Gensler has shared why the U.S. Securities and Exchange Commission (SEC) decided to approve a bitcoin futures exchange-traded fund (ETF) to trade on the NYSE. Meanwhile, the Commission has not approved a spot bitcoin ETF.
Why SEC Approves Bitcoin Futures ETF
As the first futures-based bitcoin exchange-traded fund (ETF) in the U.S. debuted on the NYSE, the chairman of the U.S. Securities and Exchange Commission (SEC) explained why the regulator greenlighted a bitcoin futures ETF but not a spot bitcoin ETF.
In an interview with CNBC Tuesday, SEC Chairman Gary Gensler reiterated that his agency “should be technology neutral, but not policy neutral.” He elaborated:
What we’re trying to do is ensure to the best we can within our authorities to bring projects into the investor protection perimeter.
“Bitcoin futures have been overseen by our sibling agency, the Commodity Futures Trading Commission [CFTC], which I was once honored and proud to serve there and that’s been four years,” the SEC chief continued.
He added that one of the applications “went effective with regard to those products over at the Chicago Mercantile Exchange [CME] that our sibling agency oversees.”
Responding to a question about why the SEC has approved a bitcoin futures ETF but not a spot bitcoin ETF, Gensler noted that he will not comment on any specific application or project. However, the SEC chief clarified:
What you have here is a product that’s been overseen for four years by a U.S. federal regulator, the CFTC, and that’s being wrapped inside of something that within our jurisdiction called the Investment Company Act of 1940. So, we have some ability to bring it inside of investor protection.

While emphasizing that bitcoin is “still a highly speculative asset class and listeners should understand that underneath this, it still has that same aspect of volatility and speculation,” the SEC chairman concluded: “Our sister agency is overseeing this for four years and then it brings it inside an 80-year-old law here at the SEC.”
The Proshares Bitcoin Strategy ETF, ticker “BITO,” began trading Tuesday on the New York Stock Exchange (NYSE). “The fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts,” its website details, adding that it “does not invest directly in bitcoin.”
What do you think about the SEC approving the first bitcoin-based ETF and Gensler’s comments? Let us know in the comments section below.

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approves bitcoin etf, bitcoin etf, bitcoin futures contract, bito, CFTC, CME, Gary Gensler, Investment Company Act, investor protection, Proshares, sec chairman

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Coinbase Becomes Exclusive Cryptocurrency Platform for NBA, WNBA, USA Basketball

Coinbase Becomes Exclusive Cryptocurrency Platform for NBA, WNBA, USA Basketball

Cryptocurrency exchange Coinbase has partnered with the National Basketball Association (NBA). The Nasdaq-listed crypto company is now the exclusive cryptocurrency platform partner of the NBA, Women’s National Basketball Association (WNBA), NBA G League, NBA 2K League, and USA Basketball.
NBA’s First Cryptocurrency Platform Partnership
The Nasdaq-listed cryptocurrency exchange Coinbase and the National Basketball Association (NBA) announced “a multiyear partnership” Tuesday.
The partnership “makes Coinbase the exclusive cryptocurrency platform partner of the NBA, Women’s National Basketball Association (WNBA), NBA G League, NBA 2K League and USA Basketball,” the announcement details, adding:
The deal, which marks the first cryptocurrency platform partnership for each league, will consist of unique content, innovations, activations and experiences from Coinbase to educate fans on the increasing advancements happening across the cryptoeconomy.
The NBA G League, or the G League, is the National Basketball Association’s official minor league basketball organization. The NBA 2K League is a joint venture between the NBA and video game publisher Take-Two Interactive.
USA Basketball is a nonprofit organization and the national governing body for men’s and women’s basketball in the U.S. It represents the country in the International Basketball Federation (FIBA) and the men’s and women’s national basketball teams in the U.S. Olympic and Paralympic Committee.
Coinbase’s tweet about its partnership with the NBA. Source: Twitter.

“Beginning with tonight’s tip-off of the NBA’s 75th Anniversary season, Coinbase will have a brand presence featured during nationally televised games,” the announcement adds. “The company will also become the presenting partner of the WNBA Commissioner’s Cup and the USA Basketball men’s and women’s national team exhibition tours, as well as a partner of NBA G League Ignite.”
Kerry Tatlock, NBA’s senior vice president of Global Marketing Partnerships and Media, commented:
We look forward to collaborating with Coinbase to provide fans with new ways to engage with the league and each other, while also enhancing the experience for fans who are already Coinbase users.
What do you think about Coinbase’s partnership with the NBA? Let us know in the comments section below.

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Hindu Paramilitary Group Calls on Indian Government to Regulate Cryptocurrencies

Hindu Paramilitary Group Calls on Indian Government to Regulate Cryptocurrencies

Hindu nationalist group Rashtriya Swayamsevak Sangh (RSS) has called on the Indian government to regulate cryptocurrencies. “The government has to ensure that it is regulated in the larger interest of the society,” the group reportedly said.
Rashtriya Swayamsevak Sangh Calls for Crypto Regulation
Mohan Bhagwat, head of the Rashtriya Swayamsevak Sangh (RSS), said during his speech at an annual event marking the Hindu festival of Dussehra Friday:
Clandestine, uncontrolled currency like bitcoin has the potential to destabilize the economy of all countries and pose serious challenges.
The RSS is a Hindu nationalist paramilitary group founded in 1925 by Dr. Keshav Baliram Hedgewar in Nagpur. According to the group’s website, any Hindu male can become a member of the group by attending an RSS shakha, a daily gathering. There is no formal membership procedure and there are no fees to join.
The group’s website further states that the RSS does not keep a record of the number of members. However, it notes that in March 2017, there were 57,185 daily RSS shakhas held at 36,729 places (including rural and urban), in addition to weekly gatherings at 14,896 places and monthly meetings at 7,594 places in Bharat. According to the Muslim Mirror, there are now more than 10 million active RSS members across India and over 100 affiliated bodies. Prime Minister Narendra Modi was also a member of the group.
Bhagwat was also quoted as saying, “I have no idea which country regulates a currency like bitcoin or if there are any rules governing them.” He added:
The government has to ensure that it is regulated in the larger interest of the society.

The Indian government is currently working on a cryptocurrency bill. In July, Finance Minister Nirmala Sitharaman said that the crypto bill was ready for the Cabinet. In September, Jayant Sinha, a lawmaker with the ruling Bharatiya Janata Party, revealed that the cryptocurrency legislation will be distinct and unique.
However, the Reserve Bank of India (RBI) continued to have “serious concerns” regarding cryptocurrencies. In addition, the RBI is working on a central bank digital currency (CBDC), which will be launched in phases. The central bank expects to unveil a digital rupee model by the end of the year.
What do you think about the Rashtriya Swayamsevak Sangh calling for Indian crypto regulation? Let us know in the comments section below.

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Financial Advisors Managing $110 Trillion Can Now Offer Crypto Trading to Clients via Interactive Brokers

Financial Advisors Managing $110 Trillion Can Now Offer Crypto Trading to Clients via Interactive Brokers

Registered investment advisors (RIAs) with about $110 trillion under management can now offer their clients cryptocurrency trading through Interactive Brokers. RIAs manage portfolios of almost 61 million clients.
Registered Investment Advisors Can Now Offer Cryptocurrencies to Clients
Global investment firm Interactive Brokers Group (Nasdaq: IBKR) announced Monday the launch of cryptocurrency trading for registered investment advisors (RIAs) in the U.S.
This offering will enable RIAs to “trade and custody bitcoin (BTC), ethereum (ETH), litecoin (LTC) and bitcoin cash (BCH) via Paxos Trust Company on behalf of clients.” They will be able to manage their clients’ crypto holdings alongside traditional investments, including stocks, options, futures, bonds, mutual funds, and exchange-traded funds (ETFs).
Nearly 14,000 investment advisors registered with the U.S. Securities and Exchange Commission (SEC) have reported nearly 61 million clients in 2020, according to a joint study by the Investment Adviser Association and National Regulatory Services. Both numbers are new highs for the industry. In addition, the industry has approximately $110 trillion in total assets under management.
A tweet by Bitcoin Archive regarding the Interactive Brokers news. Source: Twitter.
The Interactive Brokers platform has about 1.33 million customer accounts and $330.6 billion in customer equity as of the first quarter. Clients from over 200 countries and territories invest globally in stocks, options, futures, currencies, bonds, and funds from a single integrated account.

Steve Sanders, Executive Vice President of Marketing and Product Development at Interactive Brokers, commented:
Allocating a small percentage of assets to cryptocurrency as part of a well-diversified portfolio has steadily become more commonplace, and advisors may wish to recommend cryptocurrency to their clients.
Cryptocurrency trading with Paxos on Interactive Brokers’ RIA platform has commissions of between 0.12% and 0.18% of trade value, depending on monthly volume, the company detailed. Moreover, the notice adds that there are no added spreads, markups, or custodial fees.
The company noted that while the offering is only available to RIAs in the U.S. initially, it plans to “launch the service for financial advisors in other parts of the world, in the future.”
What do you think about RIAs being able to offer clients crypto trading through Interactive Brokers? Let us know in the comments section below.

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NY Attorney General Targets 5 Crypto Companies: 2 Lending Platforms Ordered to Shut Down

NY Attorney General Targets 5 Crypto Companies: 2 Lending Platforms Ordered to Shut Down

New York Attorney General Letitia James has ordered two cryptocurrency lending platforms to shut down and requested three other platforms to answer questions regarding their activities immediately. The letters to the companies published on the attorney general’s website indicate that the two platforms are Nexo and Celsius Network.
New York Cracks Down on Unregistered Crypto Lending Platforms
New York Attorney General (NYAG) Letitia James announced Monday her new efforts to crack down on unregistered cryptocurrency companies.
In New York, lending platforms must register with the Office of the Attorney General (OAG) to operate in the state or offer products to its residents. The announcement details:
Today, Attorney General James directed two of these lending platforms to immediately cease their unregistered and unlawful activities in New York and directed three other platforms to immediately provide information about their activities and products.
The notice explains that crypto lending platforms “are essentially interest-bearing accounts that offer investors a rate of return on virtual currencies that are deposited with them.” Under the Martin Act, “The nature and function of the most common virtual currency lending products or services demonstrate that they fall squarely within any of several categories of ‘security.’”
The U.S. Securities and Exchange Commission also views lending products as securities. SEC Chairman Gary Gensler recently told cryptocurrency exchange Coinbase that its Lend products were securities.

The NYAG website also published cease and desist letters to the two lending platforms in question. While the letters were redacted, the file names indicated that they were sent to Nexo and Celsius Network. Three other firms received a letter asking for information about their activities.
Nexo tweeted after the news broke: “Nexo is not offering its Earn Product & Exchange in New York, so it makes little sense to be receiving a C&D for something we are not offering in NY anyway. But we will engage with the NY AG as this is a clear case of mixing up the letter’s recipients. We use IP-based geoblocking.”
Attorney General James emphasized:
Cryptocurrency platforms must follow the law, just like everyone else, which is why we are now directing two crypto companies to shut down and forcing three more to answer questions immediately.
Last month, Attorney General James shut down the cryptocurrency trading platform Coinseed after filing a lawsuit against the company earlier this year. In February, she announced an agreement with Bitfinex, Tether, and related entities that ended their trading activity in the state of New York and imposed an $18.5 million penalty on the companies.
What do you think about New York Attorney General Letitia James taking action against unregistered crypto lending platforms? Let us know in the comments section below.

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