The FTX bankruptcy case highlights the issues with "dollarization" in crypto bankruptcies.

The U.S. House of Representatives has passed the Financial Innovation and Technology for the 21st Century Act (FIT21), marking a significant bipartisan effort to provide regulatory clarity for the cryptocurrency sector, enhance consumer protection, and foster American innovation. As the bill progresses to the Senate, advocates are encouraged to actively support responsible crypto regulation through social media engagement and outreach to senators.

SEC Chair Gary Gensler has criticized the Financial Innovation and Technology for the 21st Century Act (FIT21), arguing that it would create regulatory gaps and reduce the oversight of crypto assets as securities, thus jeopardizing investor protection.

- Justin Sun announces SunPump, the first memecoin launch platform on TRON, aiming to innovate within the meme culture ecosystem. - Kamala Harris is expected to maintain a tough stance on crypto, continuing Biden's regulatory approach. - Robinhood's CEO reveals the firm now earns more revenue from crypto trading than equities, highlighting the growing importance of crypto in financial services.

Mango DAO and Mango Markets have reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding charges related to the unregistered sale of MNGO tokens. The settlement involves a total payment of $700,000 in penalties, which will be shared among Mango DAO, Mango Labs, and Blockworks Foundation. The SEC's charges highlighted that these entities engaged in the unregistered offer and sale of governance tokens on the Mango Markets platform, which is considered a violation of securities laws. In addition to the penalties, the involved parties have agreed to destroy their MNGO tokens. The SEC emphasized that the designation of a project as a "DAO" does not exempt it from regulatory scrutiny. Jorge G. Tenreiro, the acting chief of the Crypto Assets and Cyber Unit, stated that the underlying activities and the individuals behind the project remain subject to registration requirements, regardless of the use of automated or open-source software. The SEC's complaint also identified SOL, a cryptocurrency sold on Mango Markets, as a security. This classification aligns with previous assertions made by the SEC in a separate lawsuit against the crypto exchange Binance, where SOL and other cryptocurrencies were similarly categorized. This settlement comes in the wake of significant issues faced by Mango Markets, including a major exploit that resulted in a loss of approximately $116 million, attributed to Avraham Eisenberg, who has since been convicted for his actions. The resolution of these charges marks a critical moment for Mango DAO and its associated entities as they navigate the complex regulatory landscape surrounding cryptocurrencies and digital assets.

Austin Campbell discusses the recent developments surrounding Binance and the broader implications for the cryptocurrency industry in the context of traditional finance (tradfi) and regulatory scrutiny. He begins by acknowledging the significant compliance issues that Binance faced between 2018 and 2021, which made it vulnerable to exploitation by bad actors. He draws parallels between Binance's challenges and those faced by traditional financial institutions, highlighting that compliance failures are not unique to crypto but are prevalent in the traditional banking sector as well. Campbell points out that major banks have faced substantial fines for similar issues, yet the consequences for their executives have been minimal compared to what Binance's CEO, CZ, has experienced. He questions the fairness of the regulatory response, suggesting that if the conduct of Binance warrants severe penalties, then similar actions in tradfi should also lead to significant repercussions for bank executives. He argues that the public nature of blockchain transactions makes it easier to detect crime in the crypto space, which can create a misleading perception of the prevalence of crime compared to the opaque nature of traditional finance. Campbell expresses concern that political efforts to combat crime in crypto may hinder progress in addressing financial crime more broadly. He emphasizes that the visibility of crypto transactions does not equate to a higher incidence of crime, and he challenges the notion that the choice of ledger technology is the root of the problem. The discussion also touches on the political landscape, with Campbell criticizing politicians for scapegoating crypto while ignoring more significant issues within the traditional financial system. He suggests that the regulatory focus on crypto may be a distraction from deeper systemic problems and calls for a reevaluation of how financial crime is addressed across both sectors. In conclusion, Campbell presents two possibilities: either the conduct of Binance is not as severe as portrayed, and CZ has been unfairly treated, or the conduct is indeed serious, and regulators have failed to hold traditional financial institutions accountable. He advocates for a more equitable approach to regulation that addresses the root causes of financial crime in both crypto and traditional finance, urging for reforms that prioritize transparency and accountability.

Changpeng “CZ” Zhao, the founder of Binance, has been released from U.S. custody after serving a four-month sentence in a low-security correctional facility. His sentence stemmed from a federal investigation that revealed Binance's failure to prevent extensive criminal activities on the cryptocurrency exchange, which is the largest in the world. CZ pleaded guilty to charges brought by the Department of Justice (DOJ), resulting in a $50 million fine and an agreement that he would no longer serve as an executive at Binance. Additionally, the company itself faced a monumental $4.3 billion settlement with the U.S. government, marking one of the largest corporate fines in U.S. history. Despite these legal challenges, CZ retains a significant 90% stake in Binance, which positions him as the 25th richest person globally, with a net worth estimated at $61 billion. Following his release, CZ announced his next venture, Giggle Academy, an educational platform that reportedly does not generate revenue. With his freedom restored, he is now focused on developing this new project, which is currently in the hiring phase. This situation highlights the ongoing scrutiny and regulatory challenges facing major players in the cryptocurrency industry, as authorities seek to enforce compliance and accountability in a rapidly evolving financial landscape.

Gurbir S. Grewal, the Enforcement Director of the Securities and Exchange Commission (SEC), is set to leave the agency after a notable 21-year career, with his official departure date scheduled for October 11, 2024. During his three years as the top enforcement official, Grewal was instrumental in filing enforcement actions against approximately 100 cryptocurrency firms, including major players like Coinbase, Kraken, and Ripple Labs, as well as international entities such as Binance. His tenure has been marked by a significant focus on the cryptocurrency sector, which has often been met with skepticism from industry participants who view the SEC's approach as "regulation by enforcement" rather than providing clear guidance. SEC Chair Gary Gensler praised Grewal's commitment to protecting investors and ensuring compliance with securities laws, highlighting his leadership in a division that has acted decisively based on facts and legal standards. Under Grewal's direction, the SEC authorized over 2,400 enforcement matters, resulting in more than $20 billion in financial recoveries, including disgorgement, prejudgment interest, and civil penalties. Additionally, the agency awarded over $1 billion in whistleblower awards during his time. As Grewal prepares to step down, speculation has arisen regarding the timing of his departure, particularly in relation to the cryptocurrency landscape. Some industry observers, including Bill Hughes from Consensys, have suggested that Grewal's exit may be planned as he transitions to a new role in the private sector in 2025. The SEC's fiscal year recently concluded, which may have influenced the timing of his announcement. Gensler's own term as SEC Chair is set to expire on June 5, 2026, adding another layer of uncertainty to the agency's future direction regarding cryptocurrency regulation. The SEC has faced criticism for its broad assertion that all crypto tokens are securities, a claim that has been challenged by lawmakers and has faced scrutiny in various court cases. Overall, Grewal's departure marks a significant moment for the SEC and the cryptocurrency industry, as it raises questions about the agency's regulatory approach and the potential for changes in leadership and policy direction in the coming years.