Top Stories This Week<\/strong><\/h2>\nPaxos \u2018categorically disagrees\u2019 with the SEC that BUSD is a security<\/strong><\/h3>\nThe United States Securities and Exchange Commission<\/a> (SEC) has defined the stablecoin Binance USD (BUSD) as a security in a Wells Notice sent to its issuer, Paxos Trust Company. The SEC alleges the organization failed to register BUSD under federal securities laws. The firm, however, \u201ccategorically disagrees\u201d with the authority\u2019s view, and it\u2019s prepared to \u201cvigorously litigate\u201d<\/a> the matter in the U.S. courts. Also this week, Paxos was given directions from the New York Department of Financial Services to halt the issuance of new BUSD<\/a> tokens. The department allegedly received a complaint last year<\/a> from Circle \u2014 another stablecoin issuer \u2014 claiming that Binance\u2019s reserves were insufficient to back BUSD.<\/p>\nSEC sues Do Kwon and Terraform Labs for fraud<\/strong><\/strong><\/h3>\nThe U.S. SEC has also filed a lawsuit<\/a> against Terraform Labs and its founder Do Kwon for allegedly \u201corchestrating a multi-billion dollar crypto asset securities fraud.\u201d The regulator said Kwon and Terraform offered and sold an \u201cinter-connected suite of crypto asset securities, many in unregistered transactions.\u201d It pointed to the firm\u2019s now-collapsed algorithmic stablecoin, TerraClassicUSD (USTC) and its connected cryptocurrency Terra Classic (LUNC). The complaint seeks charges for violations of registration and anti-fraud provisions of securities laws.<\/p>\n\nRead also<\/p>\n
\n\n
\n Features<\/span><\/p>\nAre CBDCs kryptonite for crypto?<\/p>\n
<\/a>\n <\/div>\n
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\n Features<\/span><\/p>\nCrypto innovators of color restricted by the rules aimed to protect them<\/p>\n
<\/a>\n <\/div>\n<\/div>\n<\/div>\n
Federal judge hints at denying Sam Bankman-Fried any internet access as condition of bail<\/strong><\/h3>\nSam Bankman-Fried appeared<\/a> in court for the first time in days after using a VPN for allegedly watching football. Prosecutors claim the use of a VPN<\/a> raised \u201cseveral potential concerns,\u201d after the former CEO contacted potential witnesses in his criminal case earlier this month. Prosecutors want Bankman-Fried to be prohibited from using cellphones, tablets, computers, or the internet, meaning no more League of Legends<\/a> or other video games.\u00a0In FTX bankruptcy news, a federal judge approved the release of the guarantors\u2019 names<\/a> for the $250 million bond. Bankman-Fried\u2019s criminal trial is scheduled to begin in October, while FTX\u2019s bankruptcy case is ongoing.<\/p>\nEl Salvador to open a \u2018Bitcoin Embassy\u2019 in the United States<\/strong><\/strong><\/h3>\nA \u201cBitcoin Embassy\u201d is being opened<\/a> by El Salvador in the United States. Ambassador Milena Mayorga said the country\u2019s representative office and the state of Texas will work on new joint projects to promote Bitcoin adoption. In another headline, the International Monetary Fund advised El Salvador to reconsider<\/a> plans to increase Bitcoin exposure, citing the \u201cspeculative nature\u201d of crypto markets, as well as its impacts on fiscal sustainability and consumer protection. Bitcoin has been a legal tender in El Salvador since 2021.<\/p>\nCelsius chooses NovaWulf\u2019s bid to exit from bankruptcy<\/strong><\/h3>\nBankrupt crypto lender Celsius Network<\/a> has chosen NovaWulf Digital Management as the sponsor for its proposed Chapter 11 restructuring plan, which will see the investment advisory firm take over the operations of a new company, with most former Celsius customers estimated to recover up to 70% of their funds. The proposed plan has the support of the unsecured creditors\u2019 committee and would see the creation of a new public platform called NewCo fully owned by Earn creditors. Six firms placed bids on Celsius crypto assets, including Binance and Galaxy Digital.<\/p>\n![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Paxos-Trust-Company-1024x682.png\")
<\/figure>\nWinners and Losers<\/strong><\/h2>\n![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/WL-feb-18-01-1024x826.jpg\")
<\/figure>\nAt the end of the week, Bitcoin (<\/strong>BTC<\/strong><\/a>)<\/strong> is at $24,372<\/strong>, Ether (<\/strong>ETH<\/strong><\/a>)<\/strong> at $1,694<\/strong> and XRP<\/strong><\/a> at $0.39<\/strong>. The total market cap is at $1.11 <\/strong>trillion, according<\/a> to CoinMarketCap.<\/p>\nAmong the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Filecoin (FIL) <\/strong>at 51.13%, Internet Computer (ICP) <\/strong>at 46.86% and Astar (ASTR) <\/strong>at 43.80%. <\/p>\nThe top three altcoin losers of the week are The Graph (GRT) <\/strong>at -1.62%, Nexo (NEXO) <\/strong>at -1.49% and UNUS SED LEO (LEO) <\/strong>at -1.05%.\u00a0<\/p>\nFor more info on crypto prices, make sure to read Cointelegraph\u2019s market analysis<\/a>.<\/p>\n\nRead also<\/p>\n
\n\n
\n Features<\/span><\/p>\nCrypto scoring big with European football<\/p>\n
<\/a>\n <\/div>\n
\n
\n Features<\/span><\/p>\nBefore NFTs: Surging interest in pre-CryptoPunk collectibles<\/p>\n
<\/a>\n <\/div>\n<\/div>\n<\/div>\n
Most Memorable Quotations<\/strong>
<\/h2>\n\n\u201cPaxos categorically disagrees with the SEC staff because BUSD is not a security under the federal securities laws.\u201d<\/p>\n<\/blockquote>\n
Paxos Trust Company<\/strong><\/a>, issuer of the Binance USD stablecoin<\/strong><\/p>\n\n\u201cBut regulation by enforcement that does nothing to help consumers and drives innovation offshore is not the answer. Getting it right on staking matters.\u201d<\/p>\n<\/blockquote>\n
Paul Grewal<\/strong><\/a>, chief legal officer at Coinbase<\/strong><\/p>\n\n\u201cThe SEC has done more to confuse rather than clarify the application of U.S. securities laws.\u201d<\/p>\n<\/blockquote>\n
Kristin Smith<\/strong><\/a>, CEO of Blockchain Association<\/strong><\/p>\n\n\u201cAs an industry we have the power and responsibility to prevent digital assets becoming a haven for money launderers and sanctions evaders.\u201d<\/p>\n<\/blockquote>\n
Simone Maini<\/strong><\/a>, CEO of Elliptic<\/strong><\/p>\n\n\u201cMake no mistake: Based upon how crypto platforms generally operate, investment advisers cannot rely on them as qualified custodians.\u201d<\/p>\n<\/blockquote>\n
Gary Gensler<\/strong><\/a>, chairman of the U.S. Securities and Exchange Commission<\/strong><\/p>\n\n\u201cWhen I look at the price action, when I look at the excitement of the customers calling, the FOMO building up, it wouldn\u2019t surprise me if we [Bitcoin] were at $30,000 by the end of the quarter.\u201d<\/p>\n<\/blockquote>\n
Mike Novogratz<\/strong><\/a>, CEO of Galaxy Digital Holdings<\/strong><\/p>\nPrediction of the Week\u00a0<\/strong><\/h2>\nBitcoin metric prints \u2018mother of all BTC bullish signals\u2019 for 4th time ever<\/strong><\/h3>\nA Bitcoin price indicator has flashed<\/a> green for just the fourth time ever this week in a major warning to bears.<\/p>\nAccording to crypto market analyst Mohit Sorout, the dollar cost average indicator was now \u201csuggesting a raging bull market.\u201d Its buy signals are rare, with Sorout seeing just three throughout Bitcoin\u2019s history, each precluding serious BTC price upside.\u00a0<\/p>\n
\u201cToday marks the 4th time this signal is suggesting a raging bullmarket,\u201d he wrote in comments, describing the event as \u201cthe mother of all $btc bullish signals.\u201d<\/p>\n
FUD of the Week\u00a0<\/strong><\/h2>\n![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Paul-Grewal-1024x682.png\")
<\/figure>\n<\/h3>\n<\/strong><\/strong>Circle squashes rumors of planned SEC enforcement action<\/strong><\/h3>\nCircle, the company behind the USDC stablecoin<\/a>, has been hit by fear, uncertainty, and doubt after a Fox Business reporter said on Twitter that the company was ordered by the U.S. securities regulator to stop selling USDC, claiming it is an unregistered security. The rumors were later denied by Circle\u2019s chief strategy officer, although fears of regulatory action against stablecoin issuers are still running high after Paxos, the issuer of the stablecoin Binance USD, received a Wells Notice for allegedly failing to register the offering under federal securities laws.<\/p>\n<\/strong>Korean e-commerce exec accused of accepting LUNA for shilling Terra Labs<\/strong><\/h3>\nSouth Korean prosecutors<\/a> have requested an arrest warrant for the former CEO of Tmon, a Korean e-commerce platform, for allegedly receiving billions in bribes from Terra\u2019s co-founder, Daniel Shin, in return for promoting Terra\u2019s token (LUNC) as a payment method. The e-commerce company reportedly advertised the token as a safe asset, therefore increasing its price, before selling it with a multibillion return.<\/p>\nSen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi<\/strong><\/h3>\nVocal crypto critic<\/a> U.S. Senator Elizabeth Warren will reintroduce to Congress a bi-partisan Anti-Money Laundering (AML) bill that covers \u201cdecentralized entities\u201d such as decentralized finance protocols and decentralized autonomous organizations. According to Warren, the crypto community wants decentralized entities running on code to be exempt from AML requirements.<\/p>\nBest Cointelegraph Features<\/strong><\/h2>\n![\"\"](\"https:\/\/cointelegraph.com\/magazine\/wp-content\/uploads\/2023\/02\/Mike-Novogratz-1-1024x682.png\")
<\/figure>\n<\/strong><\/strong>Can you trust crypto exchanges after the collapse of FTX?<\/strong><\/h3>\nExperts say that most CEXs<\/a> only offer basic contractual protection in the event of a mishap, but things are improving.<\/p>\n<\/strong>Bitcoiner Simon Dixon on bankruptcies and Elon Musk: Hall of Flame<\/strong><\/h3>\n
The United States Securities and Exchange Commission<\/a> (SEC) has defined the stablecoin Binance USD (BUSD) as a security in a Wells Notice sent to its issuer, Paxos Trust Company. The SEC alleges the organization failed to register BUSD under federal securities laws. The firm, however, \u201ccategorically disagrees\u201d with the authority\u2019s view, and it\u2019s prepared to \u201cvigorously litigate\u201d<\/a> the matter in the U.S. courts. Also this week, Paxos was given directions from the New York Department of Financial Services to halt the issuance of new BUSD<\/a> tokens. The department allegedly received a complaint last year<\/a> from Circle \u2014 another stablecoin issuer \u2014 claiming that Binance\u2019s reserves were insufficient to back BUSD.<\/p>\n The U.S. SEC has also filed a lawsuit<\/a> against Terraform Labs and its founder Do Kwon for allegedly \u201corchestrating a multi-billion dollar crypto asset securities fraud.\u201d The regulator said Kwon and Terraform offered and sold an \u201cinter-connected suite of crypto asset securities, many in unregistered transactions.\u201d It pointed to the firm\u2019s now-collapsed algorithmic stablecoin, TerraClassicUSD (USTC) and its connected cryptocurrency Terra Classic (LUNC). The complaint seeks charges for violations of registration and anti-fraud provisions of securities laws.<\/p>\n Read also<\/p>\n Are CBDCs kryptonite for crypto?<\/p>\n <\/a>\n <\/div>\n Crypto innovators of color restricted by the rules aimed to protect them<\/p>\n <\/a>\n <\/div>\n<\/div>\n<\/div>\n Sam Bankman-Fried appeared<\/a> in court for the first time in days after using a VPN for allegedly watching football. Prosecutors claim the use of a VPN<\/a> raised \u201cseveral potential concerns,\u201d after the former CEO contacted potential witnesses in his criminal case earlier this month. Prosecutors want Bankman-Fried to be prohibited from using cellphones, tablets, computers, or the internet, meaning no more League of Legends<\/a> or other video games.\u00a0In FTX bankruptcy news, a federal judge approved the release of the guarantors\u2019 names<\/a> for the $250 million bond. Bankman-Fried\u2019s criminal trial is scheduled to begin in October, while FTX\u2019s bankruptcy case is ongoing.<\/p>\n A \u201cBitcoin Embassy\u201d is being opened<\/a> by El Salvador in the United States. Ambassador Milena Mayorga said the country\u2019s representative office and the state of Texas will work on new joint projects to promote Bitcoin adoption. In another headline, the International Monetary Fund advised El Salvador to reconsider<\/a> plans to increase Bitcoin exposure, citing the \u201cspeculative nature\u201d of crypto markets, as well as its impacts on fiscal sustainability and consumer protection. Bitcoin has been a legal tender in El Salvador since 2021.<\/p>\n Bankrupt crypto lender Celsius Network<\/a> has chosen NovaWulf Digital Management as the sponsor for its proposed Chapter 11 restructuring plan, which will see the investment advisory firm take over the operations of a new company, with most former Celsius customers estimated to recover up to 70% of their funds. The proposed plan has the support of the unsecured creditors\u2019 committee and would see the creation of a new public platform called NewCo fully owned by Earn creditors. Six firms placed bids on Celsius crypto assets, including Binance and Galaxy Digital.<\/p>\n At the end of the week, Bitcoin (<\/strong>BTC<\/strong><\/a>)<\/strong> is at $24,372<\/strong>, Ether (<\/strong>ETH<\/strong><\/a>)<\/strong> at $1,694<\/strong> and XRP<\/strong><\/a> at $0.39<\/strong>. The total market cap is at $1.11 <\/strong>trillion, according<\/a> to CoinMarketCap.<\/p>\n Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Filecoin (FIL) <\/strong>at 51.13%, Internet Computer (ICP) <\/strong>at 46.86% and Astar (ASTR) <\/strong>at 43.80%. <\/p>\n The top three altcoin losers of the week are The Graph (GRT) <\/strong>at -1.62%, Nexo (NEXO) <\/strong>at -1.49% and UNUS SED LEO (LEO) <\/strong>at -1.05%.\u00a0<\/p>\n For more info on crypto prices, make sure to read Cointelegraph\u2019s market analysis<\/a>.<\/p>\n Read also<\/p>\n Crypto scoring big with European football<\/p>\n <\/a>\n <\/div>\n Before NFTs: Surging interest in pre-CryptoPunk collectibles<\/p>\n <\/a>\n <\/div>\n<\/div>\n<\/div>\n \u201cPaxos categorically disagrees with the SEC staff because BUSD is not a security under the federal securities laws.\u201d<\/p>\n<\/blockquote>\n Paxos Trust Company<\/strong><\/a>, issuer of the Binance USD stablecoin<\/strong><\/p>\n \u201cBut regulation by enforcement that does nothing to help consumers and drives innovation offshore is not the answer. Getting it right on staking matters.\u201d<\/p>\n<\/blockquote>\n Paul Grewal<\/strong><\/a>, chief legal officer at Coinbase<\/strong><\/p>\n \u201cThe SEC has done more to confuse rather than clarify the application of U.S. securities laws.\u201d<\/p>\n<\/blockquote>\n Kristin Smith<\/strong><\/a>, CEO of Blockchain Association<\/strong><\/p>\n \u201cAs an industry we have the power and responsibility to prevent digital assets becoming a haven for money launderers and sanctions evaders.\u201d<\/p>\n<\/blockquote>\n Simone Maini<\/strong><\/a>, CEO of Elliptic<\/strong><\/p>\n \u201cMake no mistake: Based upon how crypto platforms generally operate, investment advisers cannot rely on them as qualified custodians.\u201d<\/p>\n<\/blockquote>\n Gary Gensler<\/strong><\/a>, chairman of the U.S. Securities and Exchange Commission<\/strong><\/p>\n \u201cWhen I look at the price action, when I look at the excitement of the customers calling, the FOMO building up, it wouldn\u2019t surprise me if we [Bitcoin] were at $30,000 by the end of the quarter.\u201d<\/p>\n<\/blockquote>\n Mike Novogratz<\/strong><\/a>, CEO of Galaxy Digital Holdings<\/strong><\/p>\n A Bitcoin price indicator has flashed<\/a> green for just the fourth time ever this week in a major warning to bears.<\/p>\n According to crypto market analyst Mohit Sorout, the dollar cost average indicator was now \u201csuggesting a raging bull market.\u201d Its buy signals are rare, with Sorout seeing just three throughout Bitcoin\u2019s history, each precluding serious BTC price upside.\u00a0<\/p>\n \u201cToday marks the 4th time this signal is suggesting a raging bullmarket,\u201d he wrote in comments, describing the event as \u201cthe mother of all $btc bullish signals.\u201d<\/p>\n Circle, the company behind the USDC stablecoin<\/a>, has been hit by fear, uncertainty, and doubt after a Fox Business reporter said on Twitter that the company was ordered by the U.S. securities regulator to stop selling USDC, claiming it is an unregistered security. The rumors were later denied by Circle\u2019s chief strategy officer, although fears of regulatory action against stablecoin issuers are still running high after Paxos, the issuer of the stablecoin Binance USD, received a Wells Notice for allegedly failing to register the offering under federal securities laws.<\/p>\n South Korean prosecutors<\/a> have requested an arrest warrant for the former CEO of Tmon, a Korean e-commerce platform, for allegedly receiving billions in bribes from Terra\u2019s co-founder, Daniel Shin, in return for promoting Terra\u2019s token (LUNC) as a payment method. The e-commerce company reportedly advertised the token as a safe asset, therefore increasing its price, before selling it with a multibillion return.<\/p>\n Vocal crypto critic<\/a> U.S. Senator Elizabeth Warren will reintroduce to Congress a bi-partisan Anti-Money Laundering (AML) bill that covers \u201cdecentralized entities\u201d such as decentralized finance protocols and decentralized autonomous organizations. According to Warren, the crypto community wants decentralized entities running on code to be exempt from AML requirements.<\/p>\n Experts say that most CEXs<\/a> only offer basic contractual protection in the event of a mishap, but things are improving.<\/p>\nSEC sues Do Kwon and Terraform Labs for fraud<\/strong><\/strong><\/h3>\n
\n Features<\/span><\/p>\n
\n Features<\/span><\/p>\nFederal judge hints at denying Sam Bankman-Fried any internet access as condition of bail<\/strong><\/h3>\n
El Salvador to open a \u2018Bitcoin Embassy\u2019 in the United States<\/strong><\/strong><\/h3>\n
Celsius chooses NovaWulf\u2019s bid to exit from bankruptcy<\/strong><\/h3>\n
<\/figure>\nWinners and Losers<\/strong><\/h2>\n
<\/figure>\n
\n Features<\/span><\/p>\n
\n Features<\/span><\/p>\nMost Memorable Quotations<\/strong>
<\/h2>\n\n
\n
\n
\n
\n
\n
Prediction of the Week\u00a0<\/strong><\/h2>\n
Bitcoin metric prints \u2018mother of all BTC bullish signals\u2019 for 4th time ever<\/strong><\/h3>\n
FUD of the Week\u00a0<\/strong><\/h2>\n
<\/figure>\n<\/h3>\n
<\/strong><\/strong>Circle squashes rumors of planned SEC enforcement action<\/strong><\/h3>\n
<\/strong>Korean e-commerce exec accused of accepting LUNA for shilling Terra Labs<\/strong><\/h3>\n
Sen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi<\/strong><\/h3>\n
Best Cointelegraph Features<\/strong><\/h2>\n
<\/figure>\n<\/strong><\/strong>Can you trust crypto exchanges after the collapse of FTX?<\/strong><\/h3>\n
<\/strong>Bitcoiner Simon Dixon on bankruptcies and Elon Musk: Hall of Flame<\/strong><\/h3>\n
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