September 14, 2024 marks a watershed moment for global cryptocurrency regulation, with landmark developments unfolding across the United States, Europe, and the United Kingdom. From the SEC’s surprising admission that it “regrets” calling crypto tokens securities, to Italy’s formal implementation of the EU’s MiCA framework, and the UK’s groundbreaking move to classify digital assets as personal property — the regulatory landscape is being rewritten in real time.
TL;DR
- The SEC files an amended complaint against Binance, acknowledging that crypto assets themselves are not securities — only the “contracts involved in their sale” can be — and explicitly regrets the “confusion” caused by the term “crypto asset securities.”
- Italy’s Legislative Decree No. 129/2024 enters into force on September 14, formally implementing the EU MiCA Regulation and placing CONSOB and the Bank of Italy as dual supervisors of crypto-asset service providers.
- The UK government introduces the Property (Digital Assets etc) Bill in the House of Lords on September 11, creating a legal framework that recognizes cryptocurrencies and NFTs as personal property under English and Welsh law.
- Four major stablecoin issuers — Tether, Circle, Paxos, and Techteryx — freeze nearly $5 million in wallets linked to North Korea’s Lazarus Group, demonstrating growing self-regulatory capacity.
- North Carolina’s Senate overrides the governor’s veto to ban state participation in any Federal Reserve CBDC testing program.
SEC Concedes Ground on “Crypto Asset Securities” Terminology
In one of the most significant regulatory reversals of the year, the U.S. Securities and Exchange Commission filed an amended complaint against Binance on September 12, just two days before this reporting. The filing explicitly acknowledges that the SEC “regrets any confusion it may have invited” by using the term “crypto asset securities” in its original complaint and prior enforcement actions.
The clarification is subtle but carries enormous implications. The SEC now concedes that crypto assets themselves — the tokens on a blockchain — are not securities. Rather, it is the “contracts or arrangements” involved in their sale and distribution that may constitute investment contracts under the Howey test. The distinction aligns with long-standing arguments from Coinbase, Ripple, and other industry participants who have maintained that a digital token is not inherently a security simply because it exists.
Coinbase Chief Legal Officer Paul Grewal responded swiftly on social media, noting that the SEC’s admission validates what the crypto industry has argued for years. Ripple’s CLO Stuart Alderoty echoed the sentiment, highlighting that the regulator’s concession undermines its own enforcement-first approach to the sector.
The amendment comes in response to a district court order in the SEC v. Payward (Kraken) case and reflects growing judicial pressure on the agency to precisely define what it considers a security in the crypto context. While the SEC maintains its core allegations against Binance — including claims of operating an unregistered securities exchange — the rhetorical retreat signals a potential shift in how the agency frames future enforcement actions.
Italy Officially Implements MiCA, Reshaping European Crypto Landscape
On September 14, 2024, Italy’s Legislative Decree No. 129 enters into force, formally implementing the European Union’s Markets in Crypto-Assets Regulation (MiCA) into Italian national law. Published in the Official Gazette on September 13, the decree represents one of the most comprehensive national implementations of the landmark EU regulatory framework.
The decree establishes a dual supervisory model, designating CONSOB (the Italian securities regulator) and the Bank of Italy as the competent authorities overseeing crypto-asset service providers (CASPs). CONSOB oversees investor protection and market integrity, while the Bank of Italy focuses on financial stability and payment-related crypto services.
For Italy’s existing virtual asset service providers (VASPs), the transition is significant. The decree replaces the country’s light-touch OAM registration system — which allowed VASPs to begin operating within 15 days — with substantially stricter MiCA-aligned requirements. New CASPs must be established as formal corporate entities (joint stock companies, limited liability companies, or cooperatives), with management satisfying the same fit-and-proper requirements applicable to Italian banks.
The decree also introduces a mandatory asset segregation regime, requiring CASPs to keep customer crypto-assets and funds completely separate from their own assets. These segregated assets cannot be subject to enforcement actions by CASP creditors — a critical consumer protection measure.
Italy has opted to shorten MiCA’s transitional period, aligning with ESMA recommendations. VASPs registered by December 27, 2024, can continue operating until June 30, 2025. Those who apply for CASP authorization by that deadline receive an extension through December 30, 2025. Companies that do not pursue authorization must cease operations and return customer assets.
UK Introduces Digital Assets Property Bill
The British government formally introduced the Property (Digital Assets etc) Bill in the House of Lords on September 11, 2024, marking the first time UK legislation explicitly addresses the legal status of cryptocurrencies, NFTs, and other digital tokens as property. The bill establishes a third category of personal property under English and Welsh law — beyond the traditional categories of “things in possession” and “things in action” — specifically designed to encompass digital assets.
The legislation implements recommendations from the Law Commission of England and Wales, which published its seminal digital assets report in June 2023. By creating statutory recognition of digital assets as property, the bill provides courts with a clear framework for resolving ownership disputes, enabling crypto-assets to be treated like other forms of property in cases involving fraud, theft, or insolvency.
The development follows a September ruling by the UK High Court, which determined that Tether’s USDT stablecoin constitutes property — further reinforcing the legal momentum behind digital asset recognition in British courts.
Stablecoin Issuers Freeze $5 Million in Lazarus Group Funds
In a demonstration of the crypto industry’s growing self-regulatory capabilities, four major stablecoin issuers — Tether (USDT), Circle (USDC), Paxos, and Techteryx — simultaneously blacklisted two wallet addresses linked to North Korea’s Lazarus Group on September 14. The coordinated freeze, first reported by blockchain investigator ZachXBT, locked approximately $4.96 million in stablecoin assets tied to the state-sponsored hacking group.
An additional $1.65 million in Lazarus-linked funds were frozen across various exchanges. However, the action also drew criticism: Circle reportedly took 4.5 months to execute its freeze, raising questions about the speed and consistency of stablecoin compliance protocols. The incident underscores both the power and the limitations of centralized stablecoin infrastructure in combating illicit finance.
North Carolina Bans CBDC Participation
On September 9, the Republican-controlled North Carolina Senate voted 27-17 to override Governor Roy Cooper’s veto of House Bill 690, officially enacting a state-level prohibition on participation in any Federal Reserve central bank digital currency (CBDC) testing program. The House had already voted to override the veto in late July. North Carolina becomes one of the first U.S. states to enact anti-CBDC legislation into law, reflecting broader political resistance to a digital dollar among conservative lawmakers.
Why This Matters
The regulatory developments of September 14, 2024, collectively signal a maturing global approach to cryptocurrency oversight — but with markedly different philosophies. In Europe, the approach is integrationist: MiCA brings crypto-assets into the regulated financial fold with clear rules, competent authorities, and consumer protections comparable to traditional finance. Italy’s swift and detailed implementation demonstrates that major EU economies are taking MiCA seriously, creating a competitive landscape among member states to attract compliant crypto businesses.
In the United States, the regulatory environment remains more adversarial but is showing cracks. The SEC’s concession that crypto assets themselves are not securities — while maintaining that their sale arrangements can be — represents a meaningful narrowing of its enforcement posture. For the crypto industry, this distinction is crucial: it preserves the argument that secondary market trading of tokens on exchanges does not inherently involve securities transactions. The outcome of the Binance case, informed by this amended complaint, will set important precedents for how digital assets are regulated (or not) under existing securities law.
The UK’s property bill addresses a more fundamental gap: without legal recognition as property, digital assets existed in a gray area where victims of theft or fraud had limited recourse. By creating a statutory third category of property, Britain positions itself as a jurisdiction where digital asset rights are enforceable — an attractive proposition for institutional investors and crypto businesses seeking legal certainty.
Meanwhile, the Lazarus Group freeze demonstrates that the stablecoin ecosystem, despite its centralized points of control, can function as an effective tool against illicit finance. But the 4.5-month delay by Circle highlights that compliance infrastructure remains uneven, and regulators will continue pressing for faster, more standardized response protocols.
For investors and market participants, the message is clear: the era of regulatory ambiguity is ending, but it is being replaced by a fragmented landscape where rules differ sharply across jurisdictions. Understanding which regulatory regime applies — and where — is becoming as important as understanding the technology itself.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Cryptocurrency investments carry significant risk, including the potential for total loss. Readers should consult qualified professionals before making any investment decisions. BitcoinsNews.com does not endorse any specific cryptocurrency, regulatory position, or compliance approach discussed in this article.