US Court Allows Jump Crypto's Confidential Submission in SEC Case; SEC Requests Public Opinion on Bitcoin ETFs

By: Eliza Bennet

A recent court order allows Jump Crypto to privately submit information in the ongoing SEC case against Terraform Labs. The lawsuit, launched by the Securities and Exchange Commission, claims that Terraform Labs and its founder sold unregistered securities and engaged in fraud. Particularly under the lens is the events surrounding Terra's associated stablecoin, TerraUSD, which plummeted significantly in value earlier this year. The SEC believes that Jump Crypto may have played a fundamental role in the stablecoin's downfall.

In other news, the US Securities and Exchange Commission is looking for public input regarding the proposed Franklin Templeton and Hashdex Bitcoin ETFs. The SEC has requested written responses to the proposals to assess the susceptibility of these funds to manipulation and whether the exchanges that will host them are of significant size, among other issues. Templeton, in particular, has an agreement with Coinbase for surveillance sharing and price discovery, which is set to combat potential fraud and price manipulation.

Meanwhile, industry analysts speculate that Bitcoin spot exchange-traded funds (ETFs) may be poised for simultaneous approvals following the SEC's efforts to delay review of the Franklin Templeton and Hashdex ETFs applications. This move, executed ahead of the expected deadline, comes as some see a clear path towards possible approval of all pending applications.