Cryptocurrencies

Another Wells notice has hit the cryptocurrency industry as the Securities Commission steps up

Another Wells notice has hit the cryptocurrency industry as the US Securities and Exchange Commission (SEC) intensifies its scrutiny, targeting Robinhood.

The popular trading platform received the notice on May 4, signaling potential enforcement action regarding alleged securities violations related to cryptocurrency listings and custody operations.

Like other cryptocurrency companies that have received similar notices from the agency — including Coinbase, Kraken, and Uniswap — Robinhood has promised to fight any action from the SEC while complaining about the lack of federal guidance.

Meanwhile, Grayscale withdrew its application for an Ethereum (ETH) futures trading fund (ETF) just three weeks before the SEC was set to make a decision, and cryptocurrency exchange Coincheck is on track to become a Nasdaq-listed company.

Along with Robinhood’s Wells Notice and Grayscale’s Ether ETF Apps, Crypto Biz this week features a Coincheck merger deal and Block’s Billionaire Debt offering.

Robinhood’s crypto business has been denied an SEC Wells notice

The SEC issued a notice from Wells to Robinhood on May 4, indicating potential enforcement actions over the alleged securities violations. According to a regulatory filing, the SEC has been investigating the platform’s cryptocurrency listings and custody operations despite Robinhood’s attempts to comply with regulations — including avoiding listing certain tokens or offering cryptocurrency lending and staking services. Robinhood has criticized the lack of regulatory clarity at the federal level, claiming that this complicates compliance and hinders broader adoption of cryptocurrencies.

Grayscale withdraws implementation of its futures ETF

Grayscale has withdrawn its 19b-4 application for an Ether futures ETF just three weeks before the SEC was scheduled to make a decision on it. The cryptocurrency asset manager filed a notice of withdrawal from Grayscale Ethereum Futures Trust with the Securities and Exchange Commission on May 7. The Ether Futures ETF was initially filed on September 19, 2023, and if approved, would have been included in the new list. York Stock Exchange. Bloomberg analyst James Seyphart previously suggested that Grayscale intends to use the ETF as a “Trojan horse” to pressure the SEC to approve its spot ETF.

Deadlines for spot ETF filings before the SEC. source: James Seyphart

Coincheck and Thunder Bridge are moving closer to listing on the Nasdaq through a public filing

Japanese cryptocurrency exchange Coincheck and Thunder Bridge Capital are close to completing their merger and listing on the Nasdaq. According to a May 7 press release, the companies filed a Form F-4 registration statement with the U.S. Securities and Exchange Commission, marking a milestone in their two-year journey toward going public. The proposed business combination was initially revealed in March 2022, and aims to make Coincheck a publicly traded entity through a de-SPAC deal with Thunder Bridge. Originally valued at $1.25 billion, completion of the merger was delayed by severe bear market and regulatory uncertainties in the wake of the FTX collapse. The deal is now expected to be completed in the second or third quarter of 2024.

Jack Dorsey blocs to raise $1.5 billion through offering of preferred securities

Jack Dorsey’s fintech company Block announced a plan to raise at least $1.5 billion through a private placement of preferred securities. The company aims to use the funds for general corporate purposes, such as capital expenditures and repayment of existing debt. The bonds will be offered in two series, with maturities in 2027 and 2033. Among the investors allowed to join the round are pension funds, banks, mutual funds and high-net-worth individuals. The terms of the bonds, including interest rates and maturity dates, are subject to negotiation with the initial buyers, according to Block.

before you go: QANplatform has launched the world’s first quantum-resistant blockchain testnet compatible with the Ethereum virtual machine, enabling the development of quantum-resistant smart contracts.

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