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SEC SAYS ‘DON’T RUSH US’ TO COINBASE

This week the Securities and Exchange Commission issued a strong rebuttal to a legal maneuver from cryptocurrency exchange Coinbase that sought to force the regulator to create rules for cryptocurrency issuance and trading. “Coinbase’s preference for faster or different regulatory action by the commission does not entitle it to extraordinary relief from this court,” the commission’s lawyers stated in their brief. “The petition should be denied.” This exchange comes as Coinbase stares down the barrel of a likely enforcement action from the SEC. For its part, the SEC has remained steadfast that it has sufficient regulatory authority to oversee crypto, with Chair Gary Gensler intimating that virtually every digital asset with the exception of bitcoin is a security.

Source: Forbes Digital Assets. Prices as of 4:00 p.m. on May 19, 2023.

TETHER DIPS TOES FURTHER INTO BITCOIN

The company behind tether, the most popular stablecoin, is buying bitcoin as part of a reserves-management strategy. In an early-May report, Tether International disclosed a bitcoin holding of 2% of reserves, representing $1.5 billion. It plans to add new bitcoin to the tune of 15% of its net profit. Business has been good for Tether this year, which was a major beneficiary of the crisis of confidence that befell the rival stablecoin usd coin during the Silicon Valley Bank collapse. The firm reported a $1.48 billion profit in the first quarter.

IRS TRIES TO JUMP THE LINE AT FTX

The Internal Revenue Service has filed 45 claims totaling $44 billion against FTX and its affiliated entities, including a pair of demands—$20.7 billion and $7.9 billion—against Alameda Research that are specifically related to unpaid partnership taxes. Worryingly for investors and depositors, the IRS has labeled these claims as administrative priorities, which puts them ahead of those of unsecured creditors. As of April, the legal team from Sullivan & Cromwell running FTX had only recovered $7.3 billion of liquid assets.

ELSEWHERE

Is Ledger’s New Bitcoin Key Recovery Feature Safe? Experts Have Doubts [CoinDesk]

Voyager Cleared To Liquidate, Start Repaying Customers’ Crypto [Bloomberg]

U.S. Crypto Tsar Promises Crackdown On Digital Platforms [Financial Times]

Nina Bambysheva
Reporter
Forbes Money & Markets

Steven Ehrlich
Editor 
Forbes CryptoAsset & Blockchain Advisor

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