1. Disgruntled ICO Investors Threaten to Bring in the Crypto Lawyers
Security lawsuits concerning cryptocurrencies have tripled this year. To date, around a dozen ICO-related class action lawsuits have been filed including Paragon Coin, Cloud With Me, Tezos, and Latium Network. Some investors believe the SEC will operate as their personal army, filing on their behalf and bearing the legal costs. As co-director of the SEC’s Enforcement Division Stephanie Avakian recently explained that ICO cases that do not involve fraud are unlikely to feel the full force of the law. The Telegram groups of many failed ICOs are seething with threats of legal action from enraged investors desperately seeking their tokens or ether back, but legal threats in Telegram groups come easy. Following through on them in a court of law is almost impossible.
2. Ripple Leads Crypto Coalition Seeking Gov’t Oversight Encouraging Crypto, Blockchain
Ripple will lead a group of crypto startups to lobby lawmakers and financial regulators in D.C. to support crypto and blockchain innovation. the coalition of San-Francisco-based crypto firms is planning to pay Klein/Johnson Group, a bipartisan lobby group, to assist the crypto and blockchain community in conveying to regulators that the industry needs support from the government. The new group, called the Securing America’s Internet of Value Coalition, aims to soften the government’s stance in order to encourage innovation and support competition in the ecosystem of global crypto markets. The coalition, together with the lobby group, will raise issues with Congress, as well as the Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS), and other agencies that have relations to cryptocurrencies.
3. Blockchain.com Launches OTC Trading Desk, Shapeshift Relaunches Coincap
Blockchain.com, the popular cryptocurrency wallet provider, has launched an over the counter (OTC) trading desk as part of its plans to attract institutional investors. The company already offers custodial services tailored to serve the needs of clients such as hedge funds and asset managers. The move will allow Blockchain to conduct large private crypto trades outside of public exchanges. A number of companies in the space already provide OTC services, including DRW and DV Trading as well as established cryptocurrency exchanges such as Kraken and Itbit. Blockchain.com claims to have 28 million downloads of its wallet offered as part of its retail business.