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SEC files to drop crypto promo case against YouTuber Ian Balina

The US Securities and Exchange Commission has filed to drop another of its crypto lawsuits, this time its unregistered securities sales case against crypto influencer and YouTuber Ian Balina. 

The SEC said in a May 1 joint stipulation with Balina to an Austin federal court that it “believes the dismissal of this case is appropriate,” citing the work of the agency’s Crypto Task Force.

The agency didn’t give a reason for wanting to dismiss its case, but said its decision “does not necessarily reflect the Commission’s position on any other case.”

Balina told Cointelegraph in March that the SEC had informed him it would recommend the court dismiss the case and claimed the agency’s actions were based on a shift in the agency’s priorities.

“Obviously, the new administration is pro-crypto,” Balina said. The SEC has seen a change in leadership under US President Donald Trump, who appointed former crypto lobbyist Paul Atkins to chair the agency.

The joint stipulation argued a dismissal would also conserve the court’s resources “without costs or fees to either party.”

Balina is the CEO of Token Metrics, a crypto influencer with 140,000 followers on X, and a YouTuber whom the SEC accused of improperly promoting crypto projects, particularly during the initial coin offering (ICO) boom circa 2017.

The SEC sued Balina in 2022, alleging that he conducted an unregistered securities offering of Sparkster (SPRK) tokens when he formed an investing pool on Telegram in 2018.

The SEC claimed that US-based investors participated in Balina’s investing pool, using Ether (ETH), which was validated by a network of nodes “which are clustered more densely in the United States than in any other country.”

Related: SEC drops investigation into PayPal’s stablecoin

The court sided with the SEC and, in May 2024, ruled that SPRK was an investment contract under US securities laws, where investors pooled money into a common enterprise expecting profits due to the efforts of others.

SEC files to drop crypto promo case against YouTuber Ian Balina
Excerpt of the joint stipulation. Source: PACER

Shift in crypto policy

The move is the latest in a long list of crypto-related court actions that the SEC has quashed under the Trump administration’s favorable stance toward the industry. 

Over the past month, it has dropped several cases and abandoned multiple investigations against crypto firms, including against Coinbase, Ripple, Kraken, Opensea and PayPal’s stablecoin

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Japan wrote the first stablecoin rulebook — so why is the US pulling ahead?

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Japan wrote the first stablecoin rulebook — so why is the US pulling ahead?

Japan wrote the first stablecoin rulebook — so why is the US pulling ahead?

“Japan prizes systemic stability above innovation speed, while the US is signaling a bigger market-opening play,” said Startale Group’s Takashi Tezuka.

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Binance and Tether are watching Korea closely: Here’s why

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Binance and Tether are watching Korea closely: Here’s why

Binance and Tether are watching Korea closely: Here’s why

Binance and Tether are eyeing Korea’s stablecoin rules that may boost coins pegged to the South Korean won or strengthen USD dominance.

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Nigel Farage’s deportation plan relies on these conditions – legal expert explains if it could work

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Nigel Farage's deportation plan relies on these conditions - legal expert explains if it could work

Explaining how they plan to tackle what they described as illegal migration, Nigel Farage and his Reform UK colleague Zia Yusuf were happy to disclose some of the finer details – how much money migrants would be offered to leave and what punishments they would receive if they returned.

But the bigger picture was less clear.

How would Reform win a Commons majority, at least another 320 seats, in four years’ time – or sooner if, as Mr Farage implied, Labour was forced to call an early election?

How would his party win an election at all if, as its leader suggested, other parties began to adopt his policies?

Politics latest: Starmer ‘angry’ about Farage’s language on migrant hotels

Highly detailed legislation would be needed – what Mr Farage calls his Illegal Migration (Mass Deportation) Bill.

But Reform would not have a majority in the House of Lords and, given the responsibilities of the upper house to scrutinise legislation in detail, it could take a year or more from the date of an election for his bill to become law.

Reform’s four-page policy document says the legislation would have to disapply:

The United Nations refugee convention of 1951, extended in 1967, which says people who have a well-founded fear of persecution must not be sent back to a country where they face serious threats to their life or freedom

The United Nations convention against torture, whose signatories agree not expel, return or extradite anyone to a country where there are substantial grounds to believe the returned person would be in danger of being tortured

The Council of Europe anti-trafficking convention, which requires states to provide assistance for victims

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Farage sets out migration plan

According to the policy document, derogation from these treaties is “justified under the Vienna Convention doctrine of state necessity”.

That’s odd, because there’s no mention of necessity in the Vienna Convention on the law of treaties – and because member states can already “denounce” (leave) the three treaties by giving notice.

It would take up to a year – but so would the legislation. Only six months’ notice would be needed to leave the European Convention on Human Rights, another of Reform’s objectives.

Read more:
Women and children will be detained under Farage plans
Far right ’emboldened’ says MP as Starmer faces mounting pressure over immigration

Mr Farage acknowledged that other European states were having to cope with an influx of migrants. Why weren’t those countries trying to give up their international obligations?

His answer was to blame UK judges for applying the law. Once his legislation had been passed, Mr Farage promised, there would be nothing the courts could do to stop people being deported to countries that would take them. His British Bill of Rights would make that clear.

Courts will certainly give effect to the will of parliament as expressed in legislation. But the meaning of that legislation is for the judiciary to decide. Did parliament really intend to send migrants back to countries where they are likely to face torture or death, the judges may be asking themselves in the years to come.

They will answer questions such as that by examining the common law that Mr Farage so much admires – the wisdom expressed in past decisions that have not been superseded by legislation. He cannot be confident that the courts will see the problem in quite the same way that he does.

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