Crypto Rundown: BlockFi Shuts Web Platform, Shifts to Coinbase; Kraken Challenges SEC Authority

By: Isha Das

In recent cryptocurrency updates, BlockFi, the crypto lending platform, has announced the shutdown of its web platform and a shift to Coinbase as a distribution partner. This move aims to ensure continued access to withdrawals for clients involved in the bankruptcy claims process. All crypto-eligible customers with an open or approved Coinbase account can access funds if they meet certain conditions.

Moving forward, proceeds from BlockFi's expected $875 million settlement with FTX might be distributed through Coinbase. This distribution is, however, contingent upon FTX's capability to make payments in its ongoing bankruptcy case.

In another development, Kraken, the crypto trading platform, has challenged the U.S. Securities and Exchange Commission's (SEC) definition of "investment contracts" in the digital asset space. In a form of counter-argument against the SEC's allegations, Kraken's lawyers have highlighted that the digital assets offered on their platform are not securities. They suggest that the SEC is overstepping its boundaries, and this debate should move to Congress rather than the courtroom.

This court fillings points out that claims from SEC could lead to the 'significant reordering' of the U.S. financial regulatory structure and disrupt established and acknowledged financial norms.