U.S. Securities and Exchange Commissioner (SEC) Hester Peirce, well known for her pro-cryptocurrencies views, said increased interest in the space will necessarily force the regulatory body to shift toward a more accommodating stance, according to a recent interview with Cointelegraph.

  • “While we’ve been very slow in giving guidance, there is more and more interest from a wide spectrum of people, both inside the crypto space as well as inside the traditional financial institutions who are asking us for guidance,” Peirce said.
  • “So I think we’re going to be forced to confront that more and more in the coming years.”
  • Peirce also said that pro-crypto moves in the U.S. by the Commodity Futures Trading Commission and the Office of the Comptroller of the Currency as well as actions by regulators in other countries are also slowly prodding the SEC into action.
  • While there are a lot of people at the SEC who want the body to become more innovation-friendly, the regulator’s bureaucracy acts as an impediment to change and discourages risk-taking, Peirce said. The number of people interested in innovation and in crypto at the SEC is “growing,” she said.
  • The commissioner also said Congress needs to be thinking about smart contracts and decentralized finance so it can give the SEC directives on how it wants the regulator to handle them.
  • Peirce said that while she hopes the SEC will revisit its decisions to reject BTC Exchange-Traded Funds, she declined to predict whether the regulator will ever approve them, saying the SEC seems to have made up its own standards just for BTC.
  • Though the commissioner called the prospect of a digital dollar “likely,” that’s not where she says the real action is.
  • “I think a lot of the really interesting innovation is happening outside sort of the central bank digital

A worker cleans units at a cryptocurrency mining farm. 

Photographer: Andrey Rudakov/Bloomberg

A slew of regulatory moves announced this week is positive for the famously free-market-oriented cryptocurrency space, according to Fundstrat Global Advisors LLC.

Developments like the U.K. Financial Conduct Authority banning the sale of crypto derivatives and the U.S. Department of Justice issuing an enforcement framework are beneficial in the long term because they will help reduce nefarious activity in the industry, according to a report by David Grider, Tom Lee and Ken Xuan.

They cited regulators “cleaning up bad actors” as also helping. The market’s focus on news that Square Inc. bought Bitcoin and Bitcoin’s ability to push past $11,000 show that crypto can power through these things, the report said.

“Actions unsurprisingly indicate U.S. and global regulators are committed to stomping out illicit activity, securities violations, money laundering, price manipulation, and noncompliance with banking regulations,” the strategists wrote. “On balance, we view recent news as a positive for crypto markets, despite select smaller pockets of risk, and we believe the prevailing bull market trend is intact.”

Bitcoin has moved back above $11,000 after a successful defense of the $10,000 level in early September. Crypto enthusiasts were also cheered by Square Inc.’s purchase of $50 million in Bitcoin in a bet by Chief Executive Officer Jack Dorsey that it will be an instrument of financial empowerment.

Bitcoin is rising for a fourth day and has retaken the $11,000 level

In other recent developments, the founders of crypto trading giant BitMEX resigned their executive roles after being charged by U.S. authorities with skirting laws preventing money laundering. Cybersecurity pioneer John McAfee, who had been promoting cryptocurrencies, was arrested in Spain on U.S. tax-evasion charges.

Fundstrat cautioned that some areas within crypto might be vulnerable given the regulatory trajectory.

“We do see select crypto market segments as more exposed to

HONG KONG, Oct 8 (Reuters)Top executives at BitMEX, one of the world’s largest cryptocurrency derivatives exchanges, will step back from their roles, the company said on Thursday, a week after U.S. prosecutors filed criminal charges against them.

The company said last week it would “vigorously” fight the allegations after the U.S Department of Justice charged the exchange’s three founders, Arthur Hayes, Samuel Reed and Benjamin Delo with violating the federal Bank Secrecy Act. Gregory Dwyer, its first employee, was also charged.

Prosecutors said BitMEX had made itself a “vehicle” for money laundering and sanctions violations.

BitMEX said Hayes and Reed have “stepped back from all executive management responsibilities for their respective CEO and CTO roles with immediate effect,” adding they and Delo would not hold executive positions and that Dwyer would take a leave of absence from his role as head of business development.

Chief Operating Officer Vivien Khoo, will take over as chief executive. She previously held roles at Goldman Sachs and Hong Kong’s markets watchdog.

The statement said the management changes had been made with the “full approval” of the founders.

“These changes to our executive leadership mean we can focus on our core business of offering superior trading opportunities for all our clients,” David Wong, chairman of 100x Group, BitMEX’s parent, said in the statement.

Hayes and Delo did not immediately respond to requests for comment sent via their social media profiles and Reed could not be reached for comment. Dwyer’s lawyer, Sean Hecker, who earlier said his client would contest the charges, did not immediately respond to an emailed request for comment.

BitMEX is one of the world’s largest bitcoin futures trading platforms, popular for its high liquidity and compliance requirements that are seen as less onerous than those for futures venues regulated in

What’s hot in crypto this week? 

BitMEX — it’s a peer-to-peer cryptocurrency exchange and derivatives trading website dealing in bitcoin. It was founded in 2014 in Hong Kong, but is currently based in the Seychelles. BitMEX offers a variety of trading services, including margin trading with up to 100-times leverage. That means a deposit of $1,000 will result in a trader having the ability to trade $100,000 worth of BTC and futures trading, allowing investors to bet on the future prices of BTC. 

The platform only handles prices in bitcoin, rather than fiat currencies, meaning that all gains and losses are in BTC. In 2016, BitMEX became the first Bitcoin denominated futures contract on a Chinese A Share index.

Why? 

On Oct. 1, the U.S. Attorney’s Office for the Southern District of New York unsealed a criminal indictment against several BitMEX executives, including the chief technology officers, alleging they failed to comply with the Bank Secrecy Act before allowing U.S. residents to trade funds on the platform. Specifically, the authorities said the exchange did not conduct know-your-customer checks, which opened the door for potential criminal activity. The U.S. Attorney even alleges that BitMEX failed to register with the Commodity Futures Trading Commission, or CFTC.

This is a big deal. BitMEX, which has objected to the charges, is one of the industry’s largest trading platforms. In 2016, it introduced a derivative known as perpetual swaps (futures that don’t expire) to the market, with up to 100-times leverage, and for many years it was the market leader by derivative volume and open interest. 

“BitMEX touts itself as the world’s largest cryptocurrency derivatives platform in the world with billions of dollars’ worth of trading each day. Much of this trading volume and its profitability derives from its extensive access to United States markets

Two weeks ago, Kraken Financial received the first Special Purpose Depository Institution (SPDI) charter from the Wyoming Banking Division to much fanfare. With the hard work of well-known players such as Tyler Lindholm (R-Sundance) and Caitlin Long, CEO of Avanti Bank, the foundation has been established for Wyoming to be the most crypto-friendly jurisdiction in the U.S. Now that the laws are passed and the charter is issued, it is up to the Wyoming Banking Division regulators to begin the first-ever crypto bank examinations.

By way of background, I have prior experience at the Federal Deposit Insurance Corporation (FDIC) where I have examined banks in Texas, Louisiana, and Arkansas. Almost always, banks have a combination of federal and state examiners if the charter is issued by the state, with either the FDIC or the Federal Reserve as the federal regulator. If the charter is national, the Office of the Comptroller of the Currency (OCC) will examine the bank, meaning only federal regulators go on bank examinations.

However, Wyoming’s new SPDI charter for Kraken Financial creates a very unique circumstance that I believe has created ‘Unicorn Regulators’ for Fintech, who are at a historic moment in preparing for digital asset bank examinations, similarly to when the FDIC began its first exams in 1933 and the OCC started exams in 1863. I had a unique opportunity to spend some time speaking to both Commissioner Albert L. Forkner of the Wyoming Banking Division and Chris Land, General Counsel, to get an inside view of this historic moment in bank examinations. Below is my Q&A with them.

Jason Brett: All regulators started somewhere from scratch. Whether it was the FDIC in 1933 about to conduct its first examination, there is likely a sense