Cryptocurrency: SEC to make a “Potentially Big” Announcement Tomorrow?

Lavina Daryanani
Source: The Wall Street Journal

Regulators have been keenly observing the cryptocurrency space for quite some time now. To cater to the changing market conditions and to protect investors, they have been tweaking existing regulations. Additionally, they have not been hesitating from adding new ones and expanding the scope.

Alongside, enforcement action is also being taken to curb illegal activities and uphold the spirit of justice. Right from issuing search warrants to questioning and arresting lawbreakers, regulators have been on their toes the whole time.

Citing unnamed sources, Fox Business Journalist Eleanor Terrett recently asked people from the community to brace themselves for a “potentially big announcement” from the SEC tomorrow.

According to the SEC’s official website, a ‘closed meeting‘ is scheduled for Feb. 9 at 2:00 p.m. ET. And perhaps, the announcement could be made after that concludes the following:

Kraken settlement

Earlier today, Bloomberg reported that Kraken was in legal trouble. At the moment, the exchange is involved in a probe by the SEC. The scrutiny is on to assess if the exchange broke securities rules by offering unregistered securities to American clients.

The probe is reportedly at “an advanced stage” and “could lead to a settlement in coming days,” according to Bloomberg’s unnamed source. The case has not been made public yet. So, if an announcement is made tomorrow, there are odds that it could be Kraken related.

Advocating the same, the Fox Business Journalist questioned,

“Could it have something to do with a Kraken settlement following a closed meeting at 2pm?”

Ripple lawsuit related

Leaving aside Kraken, blockchain payments firm Ripple is already being sued by the SEC. The said lawsuit was officially filed in December 2020 and has not yet wound up. So, another speculation doing the rounds on social media is related to the same.

Prominent XRP Army member XRPcryptowolf questioned,

Does it [the SEC announcement] have anything to do with the Ripple lawsuit?

Meanwhile, Yassin Mobarak, Founder of private equity firm Dizer Capital tweeted,

Could it be a Ripple settlement?

After coming this far, it doesn’t seem like the defendants want to give up and settle. It should be noted that Ripple executive Brad Garlinghouse said last month that he was optimistic that a ruling in the case will be reached in 2023, likely in the first half of this year.

Staking ban

Moving on, it is worth recalling that Coinbase CEO Brian Armstrong said revealed on Twitter today that the SEC was allegedly looking to get rid of cryptocurrency staking in the U.S. for retail customers. If the agency is indeed considering the same, it could perhaps make an announcement related to it tomorrow.

Of late, people from the space have not been satisfied with the SEC and its way of handling issues. For instance, Messari’s Co-Founder Dab McArdle recently tweeted:

In January, another U.S. agency, the Department of Justice proclaimed that it will “announce a major, international cryptocurrency enforcement action.” Initially, there were speculations that something “huge” will be announced, and the same was expected to have a substantial impact on the price of top assets.

The agency eventually revealed that the government had taken action against the never-heard-before cryptocurrency exchange Bitzlato. Thus, that episode turned out to be a classic example of loud thunder, but no rain.

Also Read: Bitcoin, ‘Bitzlato’ and the DOJ: What Just Happened?