Weekly Highlights from Financial Regulators
Date: 2023-12-15 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Regulatory Insights from the Crypto World
Colin Wu, a well-known figure in the cryptocurrency journalism space, has highlighted several key events and statements from financial regulators in the past week. These developments shed light on the evolving landscape of cryptocurrencies and their legal status.
CFTC Chairman's Stance
Rostin Behnam, the head of the Commodity Futures Trading Commission (CFTC), made a significant statement on CNBC Squawk Box, asserting that "according to the law, the majority of cryptocurrencies are considered commodities." He also acknowledged an ongoing "battle for influence" among leading financial regulators in the United States.
Tether Freezes 41 Wallets
Tether (USDT), a stablecoin issuer, took action by freezing 41 wallets associated with individuals listed under the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) specially designated nationals (SDN) list. The company stated that these actions were taken as "preventive measures."
It was revealed that several wallet owners had used the Tornado Cash service. Paolo Ardoino, the CEO of Tether, expressed the company's commitment to building a secure stablecoin ecosystem for all users. Additionally, Tether later blocked an additional 161 addresses on the Ethereum network, some of which were linked to an attack on the Stake protocol.
SEC to Examine Binance
Representatives from the U.S. Securities and Exchange Commission (SEC) emphasized their intent to review statements made by Binance representatives, including its former CEO Changpeng Zhao, as part of a global agreement with U.S. financial regulators and authorities.
IRS Demands Tax Payment from FTX
In a noteworthy development, the U.S. Internal Revenue Service (IRS) has requested FTX to pay $24 billion in taxes. The exchange's legal team insists that the IRS must substantiate its claims and clarify how it assessed the amount owed. FTX maintains that the platform's leadership did not hide income, employment, and failed to pay fines owed by FTX and its subsidiaries from 2018 to 2022.
