SEC Commissioner Calls Out Watchdog’s Accounting Warning for Crypto Firms

• A suite of crypto legislation was passed by the House Financial Services Committee this week.
• Sam Bankman-Fried surrendered Caroline Ellison’s personal writings to court.
• Democratic Congressman Ritchie Torres called Gensler’s SEC “arbitrary and capricious”.

Legislation Passes House Financial Services Committee

A suite of crypto legislation passed the House Financial Services Committee this week, allowing greater control and oversight over digital currency trading. The passing of the legislation is seen as a major step forward for the cryptocurrency industry, which has long been viewed with suspicion by some in the financial world.

Sam Bankman-Fried Surrenders Writings

Sam Bankman-Fried, CEO of FTX, a popular cryptocurrency trading platform, surrendered Caroline Ellison’s personal writings to court this week in response to an ongoing investigation into insider trading allegations against him and his company. Bankman-Fried has consistently denied any wrongdoing and is confident that he will be vindicated when all the facts come out in court.

Ritchie Torres Criticizes Gensler’s SEC

Democratic congressman Ritchie Torres voiced his disapproval with Gary Gensler’s approach to regulating cryptocurrencies at the Securities and Exchange Commission (SEC). He claimed that Gensler’s actions were „arbitrary and capricious,“ calling for more clarity on how cryptocurrency will be regulated going forward.

Jason Lowrey Book Removed From Circulation

Jason Lowrey’s book exploring Bitcoin and its strategic significance was removed from circulation—including from MIT library—for unknown reasons last week. Many have speculated that it might have something to do with Lowrey’s views on privacy coins such as Monero or Zcash, which may have prompted someone to try to keep his book from reaching a wider audience.

Hester Peirce Calls Warning Into Question

SEC commissioner Hester Peirce expressed her disagreement with watchdog’s public accounting warning in a July 27 tweet . Despite conceding that crypto firms should be clear about proof of reserve, she argued that good faith efforts should not be discouraged by regulators if they lead to greater transparency in an industry often plagued by frauds and scams.