John Reed Stark Supports SEC's Firm Stance!

Stark believes the agency is not practicing "regulation by enforcement" but rather enforcing existing laws as part of its duties.

Author

Danielle du Toit
May 08, 2024

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Here's what we've got for you today:

  • John Reed Stark Criticizes Crypto’s Claims of Unfair SEC Enforcement

  • Traders Rush to Short Ether as Grayscale Pulls its Futures ETF Plan

  • Hong Kong Debuts First $1 Billion ETF Liquidity Fund

  • FTX Unveils New Repayments Plan Amid Skepticism

❗️ John Reed Stark Criticizes Crypto’s Claims of Unfair SEC Enforcement

According to Stark, the crypto industry needs to adapt to the laws rather than expecting legal norms to adjust to its needs.

  • John Reed Stark defended the SEC's actions during a U.S. House Financial Services Committee hearing, and believes the agency is not practicing "regulation by enforcement" but rather enforcing existing laws as part of its duties.

  • Stark brushed off the crypto industry's claims that the SEC is creating precedents through enforcement actions. He sees these actions as standard law enforcement that is necessary considering the industry's non-compliance with already established legal norms.

  • He also touched on difficulties when it comes valuing digital assets, pointing out their absence of traditional financial metrics like cash flow, management quality, or historical performance.

Ether traders have stacked up their short positions over the last 24 hours, just as Grayscale pulled its application for an Ethereum futures ETF.

  • Liquidation maps indicate that traders anticipate a decline in ETH’s price, with $345 million in short positions at risk of liquidation if prices rise by 3%.

  • This very cautious market sentiment follows Grayscale's recent withdrawal of its Ether futures ETF application, just weeks before the SEC's decision deadline.

  • Analysts are now increasingly skeptical about the likelihood of the SEC approving a spot Ether ETF by the upcoming May 23 deadline.

Hong Kong has taken a big step towards solidifying its position as a digital asset hub with the launch of its first-ever ETF liquidity fund.

  • A new $1 billion HKD liquidity fund was created by LD Capital, Antalpha Ventures, and Highblock to enhance liquidity and stability in Hong Kong's emerging ETF market.

  • The Securities and Futures Commission recently approved six new Hong Kong-listed ETFs, including Bitcoin and Ethereum spot ETFs managed by ChinaAMC, Harvest Global, and Bosera International.

  • The liquidity fund will provide market-making services to these ETFs, ensuring there are always interested parties on both sides of a trade.

FTX proposed a new repayment plan promising full recovery plus additional compensation to creditors after its 2022 collapse.

  • FTX proposed a new plan to reimburse its creditors, promising to cover all claims and additional "billions in compensation" for the time value of their investments.

  • The repayment plan is pending finalization and approval by a Delaware Bankruptcy Court.

  • The proposed total distribution under this plan ranges from $14.5 to $16.3 billion. Payments are expected to start within 60 days after the plan's approval.

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