SEC Targets Robinhood, Grayscale Ethereum ETF, and Others
Another Welsh announcement has hit the crypto industry, targeting Robinhood as the US Securities and Exchange Commission (SEC) ramps up its scrutiny.
The popular trading platform received the notice on May 4, that it could take enforcement action against alleged security breaches related to cryptocurrency listings and custodian operations.
Like other crypto firms — including Coinbase, Kraken and Uniswap — that have received similar notices from the agency, Robinhood has vowed to fight any SEC action while complaining about the lack of federal guidance.
Meanwhile, Grayscale has withdrawn its application for an Ether (ETH) futures exchange-traded fund (ETF) three weeks before the SEC is due to make a decision on it, and crypto exchange Coincheck is on track to become a Nasdaq-listed company.
Along with Robinhood's Wells announcement and Grayscale's Ether ETF applications, this week's Crypto Biz features Coincheck's merger deal and Blockchain Billionaire's debt offering.
Robinhood crypto business slapped with SEC Wells announcement
The US SEC issued a notice to Robinhood of Wales on May 4, indicating that enforcement action may be taken over alleged securities violations. According to a regulatory filing, the SEC has been scrutinizing the platform's crypto listings and custodial operations despite Robinhood's attempts to comply with regulations — including delisting certain tokens or offering crypto lending and savings services. Robinhood criticized the lack of regulatory transparency at the federal level, which complicates compliance and hinders widespread crypto adoption.
Grayscale Releases Ethereum Futures ETF App
Grayscale withdrew its 19b-4 filing for its ether futures ETF three weeks before it was scheduled to decide. The cryptocurrency asset manager filed a withdrawal notice for Greyscale Ethereum Futures Trust with the SEC on May 7. The Ether Futures ETF was first offered on September 19, 2023 and will be listed on the new if approved. York Stock Exchange. Bloomberg analyst James Seifert previously suggested that grayscale intends to use ETFs as a “Trojan horse” to pressure the SEC to approve the spot Ether ETF.
Coincheck, Thunder Bridge close to Nasdaq listing with public filing
Japanese crypto exchange Coincheck and Thunder Bridge Capital are close to completing their merger and Nasdaq listing. According to a May 7 press release, the companies have filed an F-4 Form F-4 registration with the US SEC, marking their two-year journey toward a public offering. Announced in early March 2022, the proposed business combination aims to make Coincheck a publicly traded entity through a de-SPAC from Thunder Bridge Transactions. Originally valued at $1.25 billion, completion of the merger was delayed by a severe bear market and regulatory uncertainties following the FTX collapse. The transaction is now expected to close in the second or third quarter of 2024.
Jack Dorsey Block to issue $1.5 billion in senior notes
Jack Dorsey's fintech firm Block has announced plans to raise at least $1.5 billion in a private offering of senior notes. The company intends to use the funds for general corporate purposes, such as capital expenditures and paying off current debt. The notes will be offered in two tranches with maturities in 2027 and 2033. Investors allowed to join the round include pension funds, banks, mutual funds and high net worth individuals. The terms of the notes, including interest rates and maturity dates, are subject to negotiation with the original purchasers of the block.
Before you go: QANplatform has launched the world's first quantum-resistant blockchain testnet, compatible with the Ethereum virtual machine, which enables the creation of quantum-resistant smart contracts.
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