SEC sanctioned for ‘abuse of power,’ probes Ethereum: Law Decoded – image of blockchain technology with keywords
SEC sanctioned for ‘abuse of power,’ probes Ethereum: Law Decoded

A U.S. District Court has imposed sanctions on the Securities and Exchange Commission (SEC) for acting in “bad faith” in their lawsuit against Debt Box.

The SEC initially filed a motion to dismiss without prejudice, but Judge Robert Shelby denied it, accusing the regulator of intentionally deceiving the court about evidence they obtained to obtain a temporary restraining order and freeze Debt Box’s assets in August 2023.

Judge Shelby explained that the “critical evidence” provided by the SEC was “baseless” and presented in a “deliberately false and misleading manner.”

Meanwhile, multiple advocacy groups have filed amicus briefs in support of Coinbase’s appeal, urging the SEC to establish clear regulations for the cryptocurrency industry.

In separate filings with the U.S. Court of Appeals for the Third Circuit, the Crypto Council for Innovation, the Satoshi Action Fund, the Texas Blockchain Council, Paradigm investment firm, Lejilex digital asset company, and the U.S. Chamber of Commerce all argued that the SEC lacks clear guidelines for market participants to follow in the United States.

Many of these filings also stated that without clear regulations, companies may be more inclined to leave the country.

However, this has not stopped the SEC from expanding its operations. On March 19, they requested an additional $158 million from the federal budget for 2025 to address the “significant growth and change in our markets,” including the “Wild West of the crypto markets.”

The Congressional Budget Justification document, which outlines the SEC’s budgetary needs for the upcoming fiscal year, is requesting over $2.5 billion for 2025, up from the $2.4 billion requested for 2024.

Reports have also surfaced that the commission has issued subpoenas to companies related to efforts to classify Ether (ETH) as a security. Several U.S.-based companies allegedly received subpoenas from the SEC requesting financial records and documents related to their dealings with the Ethereum Foundation.

According to sources familiar with the matter, the SEC launched a campaign to label ETH as a security after the blockchain’s transition from proof-of-work to proof-of-stake in 2022.

IMF Urges Pakistan to Implement Crypto Taxation

The International Monetary Fund (IMF) has requested that the Federal Board of Revenue (FBR) in Pakistan impose capital gains tax on investments in cryptocurrency as a condition for receiving $3 billion in bailout funds.

As part of the review process for a $3 billion stand-by arrangement, the IMF has advised the FBR to levy taxes on profits made from crypto investments.

The proposed changes to tax rates, as recommended by the IMF, aim to generate annual revenue from capital gains on real estate assets, regardless of whether the owner decides to sell or keep the property.

Moreover, stricter monitoring and reporting requirements may be imposed on property developers, with significant penalties for non-compliance, ultimately enforcing new tax regulations in the real estate market.

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Nigeria Demands Binance to Reveal User Data, Launches Criminal Probe

A Nigerian High Court has ordered Binance Holdings to provide the Economic and Financial Crimes Commission with detailed information on all Nigerian traders using its platform. The agency’s lawyer, Ekele Iheanacho, argued that Binance’s operations in Nigeria have criminal elements.

Additionally, the Nigerian government has initiated criminal proceedings against the exchange for tax evasion.

Meanwhile, Binance executive Nadeem Anjarwalla reportedly evaded detention with a counterfeit passport, according to sources familiar with the matter. Anjarwalla and colleague Tigran Gambaryan have been held in an Abuja guest house for several weeks.

Read on to learn more about these developments.

Australian Regulator Focused on “Outcome-Based” Crypto Policies

The Australian Securities and Investments Commission (ASIC) is prioritizing desired regulatory outcomes as it nears the completion of a range of regulatory reforms for the cryptocurrency sector.

At “The Brief – Open Forum” during Blockchain APAC’s Policy Week, ASIC Commissioner Alan Kirkland outlined the agency’s strategy for promoting responsible financial innovation.

Kirkland emphasized the importance of addressing the “regulatory trilemma” posed by financial innovations, which includes protecting consumers, maintaining market integrity, and encouraging financial innovation.

In order to foster trust in cryptocurrencies and decentralized financial systems, ASIC is enhancing oversight and balancing the factors of the trilemma. According to Kirkland, the agency has provided informal regulatory assistance to over 900 entities since 2016.

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