A United States federal court has penalized the Securities and Exchange Commission (SEC) for its dishonest actions in its lawsuit against Debt Box. Judge Robert Shelby denied the SEC’s motion to dismiss the case without prejudice, criticizing the regulator for deliberately deceiving the court about the evidence it presented to obtain a temporary restraining order and freeze Debt Box’s assets in August 2023. Shelby stated that the evidence provided by the SEC had no basis and was intentionally false and misleading.
In the meantime, several advocacy groups have submitted amicus briefs in support of Coinbase’s appeal, urging the SEC to establish clear regulations for the cryptocurrency industry. The Crypto Council for Innovation, the Satoshi Action Fund, the Texas Blockchain Council, Paradigm, Lejilex, and the U.S. Chamber of Commerce have all filed separate documents with the U.S. Court of Appeals for the Third Circuit, arguing that the SEC’s lack of clear guidelines for market participants in the United States could prompt companies to leave the country.
Despite these concerns, the SEC continues to expand its activities. On March 19, it requested an additional $158 million from the federal budget for 2025 to address the significant growth and changes in the crypto markets, which it referred to as the “Wild West.” The Congressional Budget Justification document outlines the SEC’s budgetary requirements for the upcoming fiscal year and requests over $2.5 billion for 2025, an increase from the $2.4 billion it requested for 2024.
Reports suggest that the SEC has issued subpoenas to companies related to the classification of Ether (ETH) as a security. Several U.S.-based companies allegedly received subpoenas from the SEC, requesting documents and financial records regarding their dealings with the Ethereum Foundation. The commission reportedly launched a campaign to classify ETH as a security following the blockchain’s transition from proof-of-work to proof-of-stake in 2022.
The International Monetary Fund (IMF) has urged Pakistan’s Federal Board of Revenue (FBR) to impose capital gains tax on cryptocurrency investments as a requirement to qualify for $3 billion in bailout funds. During discussions for a $3 billion stand-by arrangement, the IMF suggested that the FBR implement taxes on crypto capital gains. The recommended adjustment in tax rates aims to collect taxes on capital gains from real estate assets annually, regardless of whether the owner sells or retains the property. The real estate market may also face stricter tracking and reporting requirements, supported by substantial fines for noncompliance.
A Nigerian High Court has instructed Binance Holdings to provide comprehensive data and information about Nigerian traders on its platform to the Economic and Financial Crimes Commission. The court motion argued that Binance’s activities in Nigeria involve criminal elements. The Nigerian government has also reportedly initiated criminal proceedings against the exchange for tax evasion. Additionally, it has been reported that Binance executive Nadeem Anjarwalla evaded detention using a fake passport.
The Australian Securities and Investments Commission (ASIC) is developing “outcome-based” regulatory policies for the crypto sector. ASIC Commissioner Alan Kirkland revealed the agency’s plan to promote responsible financial innovation at “The Brief – Open Forum.” Kirkland emphasized the need to address the regulatory trilemma of consumer protection, market integrity, and financial innovation. The ASIC aims to enhance oversight and trust in crypto and decentralized financial systems by finding a balance among these factors. Since 2016, the ASIC has provided informal regulatory assistance to over 900 entities.