Blockchain Association calls for SEC leadership shift amid ‘shameful’ FDIC reveal: Law Decoded

As a seasoned analyst with over two decades of experience in the financial sector, I’ve witnessed the ebb and flow of regulatory landscapes across various industries. The recent developments in the crypto space are no exception, and they paint a complex picture that demands careful consideration.


According to the Blockchain Association, a non-profit organization promoting cryptocurrencies and blockchain technology, the United States Securities and Exchange Commission’s legal actions regarding digital assets have resulted in over $425 million in costs for various companies.

On October 31st, the BA (presumably referring to the Bureau of Accountancy or similar body) updated its “regulation by enforcement” webpage, disclosing that the Securities and Exchange Commission had brought 104 legal actions against the cryptocurrency sector between 2021 and 2023.

Based on reports from member companies within the association, who represent a modest sector of the industry, an estimated $426 million was expended for legal actions primarily aimed at defending against allegations by the Securities and Exchange Commission (SEC).

According to the BA, both the crypto sector and American voters are open to fresh changes, and they urged for a shift in management at the Securities and Exchange Commission (SEC) to put an end to the ongoing legal battles facing the industry.

Coinbase finds over “20 examples” of FDIC telling banks to avoid crypto

On November 1st, Paul Grewal, Coinbase’s top legal official, stated that they had discovered approximately 20 instances where the Federal Deposit Insurance Corporation (FDIC) had advised banks against dealing with cryptocurrency.

Grewal mentioned that the FDIC advised banks to temporarily halt, abstain from initiating, or forgo offering cryptocurrency banking services.

The finding emerged following Coinbase submitting two Freedom of Information Act (FOIA) petitions to the Federal Deposit Insurance Corporation (FDIC), asking them to share details regarding the current trend of U.S. banks refusing cryptocurrency-related activities.

Coinbase’s Grewal expressed disappointment, stating that the government agency’s handling of the FOIA requests was a regrettable attempt to restrict financial services for legitimate U.S. businesses.

FTX estate sues KuCoin to recover over $50 million in assets

As an analyst, I’m reporting that Alameda Research, a key entity associated with the now-defunct cryptocurrency exchange FTX, has initiated legal action against another crypto exchange, KuCoin. The aim is to retrieve over $50 million worth of assets that have been immobilized on their platform.

On October 28th, a document submitted to the United States Bankruptcy Court for the District of Delaware, which is overseeing FTX’s Chapter 11 proceedings, disclosed that KuCoin had stopped access to the funds following FTX’s financial downturn in November 2022.

The filing claimed that KuCoin had refused to release the assets, originally worth $28 million, despite multiple attempts to obtain the frozen funds.

In simpler terms, Alameda’s submission asserts that the cryptocurrency platform’s refusal to hand over the promised assets breaches the Bankruptcy Law. It also demands the return of these assets and may seek additional compensation for the time lost due to the delay.

Australian police’s “new powers” lead to $142,679 crypto seizure

As a crypto investor, I recently learned about an exciting development: The Victoria Police Department in Australia announced on October 31st that they’ve successfully seized cryptocurrency for the first time, thanks to newly granted “enhanced authorities.

After an amendment to the Confiscation Act of 1997, Victoria Police successfully obtained control over digital assets worth approximately $142,679.

As a researcher, I’m sharing an update about the latest development in Victoria: Law enforcement officials now have the power to seize cryptocurrency assets from suspected criminals using a search warrant. This move is aimed at disrupting criminal activities involving digital currencies.

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2024-11-04 23:16