Abra, the Cryptocurrency investment platform owned by Plutus Lending, has reached a settlement with the U.S. Securities and Exchange Commission (SEC) after being accused of inappropriately promoting its Abra Earn product. According to the agency, it qualified as a security that should have been registered.
Since 2020, Abra began offering Abra Earn to its clients, promising high returns in exchange for allowing the firm to use their assets, the SEC complaint alleges. At its peak, the program handled around $600 million, of which nearly $500 million came from U.S. investors. However, the platform operated for at least two years as an unregistered investment firm, a serious violation under U.S. regulations.
While Abra neither admitted nor denied the allegations, the company agreed to comply with the penalties imposed by the SEC and pledged not to violate securities registration laws again in the future. Additionally, the company could face civil penalties to be determined by a court.
Controversy in France over the arrest of Pavel Durov, founder of Telegram
The arrest of Pavel Durov, the man behind the popular messaging app Telegram, has sparked a whirlwind of reactions in France and abroad. Durov was arrested on August 24 at Le Bourget airport, north of Paris, after landing on a private flight from Azerbaijan.
French President Emmanuel Macron was quick to respond to the speculation. In a message on social media, Macron said that Durov’s arrest was part of an “ongoing judicial investigation” and strongly denied that it was “a political decision.”
With this statement, the French president sought to put a stop to rumours that point to possible violations of freedom of expression. A concern that has resonated strongly on social media.
I have seen false information regarding France following the arrest of Pavel Durov.
France is deeply committed to freedom of expression and communication, to innovation, and to the spirit of entrepreneurship. It will remain so.
In a state governed by the rule of law,…
— Emmanuel Macron (@EmmanuelMacron) August 26, 2024
Although French authorities have yet to provide details on the exact reasons for the arrest, the uncertainty has not stopped high-profile figures such as Tesla CEO and X chairman Elon Musk from expressing their concern and demanding Durov’s release.
Cryptocurrency investments reach $533 million in a week, driven by Bitcoin
Investments in digital assets have seen a significant inflow of $533 million over the past week, marking the highest figure in five weeks. Bitcoin has been the main beneficiary, attracting $543 million. While Ethereum suffered outflows of $35.7 million, according to the latest report from CoinShares.
This surge in investments suggests a renewed interest in Bitcoin, with analysts noting that the cryptocurrency’s bull market has already begun. The world’s largest cryptocurrency is targeting $65,000. And, the final phase of this bull cycle is expected to begin once the dollar index falls below a key support level.
The report attributes this strong capital flow to recent comments by Federal Reserve Chairman Jerome Powell during the Jackson Hole Symposium. Powell hinted that there could be a first interest rate cut in September and expressed confidence that inflation is approaching the 2% target. This has been interpreted by investors as a positive sign for risk assets, including cryptocurrency investment products.
TD Cowen warns of risk of stagnation in cryptocurrency legislation by 2024
Investment bank TD Cowen has urged caution regarding the passage of cryptocurrency legislation in the coming year, warning of a potential political stalemate that could significantly delay any progress on regulating the sector.
Jaret Seiberg, managing director of TD Cowen’s Washington Research Group, noted that expectations for the passage of the FIT21 cryptocurrency market structure bill and the Senate Agriculture Committee bill are fading.
“We believe that optimism is unfounded, as we believe that the prospects for a vote on either bill are diminishing this year, and there is a growing risk that the bills could become politically deadlocked next year,” Seiberg wrote in a research note issued Monday.
TD Cowen’s analysis suggests that even in 2024, the odds of progress are slim, regardless of the election outcome. Seiberg warned that both parties could delay passage of the legislation to maximize political contributions from the industry before following through on what they promised.
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