A Utah judge released SafeMoon CEO Braden John Karony on $500,000 bond, despite a request from federal prosecutors that he be held without bail. Karony, along with SafeMoon co-founder Kyle Nagy and Chief Technology Officer Thomas Smith, were arrested last week and accused of stealing tens of millions of dollars in customer funds.

The SEC has reportedly started talks with Grayscale on the company’s spot BTC ETF application. Relatedly, November 8 marked the last day for rebuttal comments on pending ETF applications, including those from Grayscale, BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie.

SEC Chair Gary Gensler told CNBC that a revived FTX under new leadership could work if it is done “within the law.” Gensler told CNBC that any new leadership must "Build the trust of investors in what you're doing and ensure that you're doing the proper disclosures— and also that you're not commingling all these functions, trading against your customers. Or using their crypto assets for your own purposes."

The SEC responded to Binance’s motion to dismiss the agency’s case against it, objecting to Binance’s attempt to escape the lawsuit and arguing that internal discussions at the company demonstrate that leadership was aware that they were breaking the law. Binance argued in its motion to dismiss that the SEC is going beyond its Congressional mandate in engaging in enforcement actions against the crypto industry.

House Financial Services Committee Chair Patrick McHenry (R-NC) announced a Digital Assets, Financial Technology and Inclusion Subcommittee hearing titled, "Crypto Crime in Context: Breaking Down the Illicit Activity in Digital Assets." The hearing is scheduled for Wednesday, November 15.

Reps. Zach Nunn (R-IA) and Abigail Spanberger (D-VA) introduced the Creating Legal Accountability for Rogue Innovators and Technology (CLARITY) Act, which would prohibit the federal government from utilizing blockchain technology developed by China and other foreign adversaries in order to protect American data. Specifically, the bill would prevent the government from utilizing blockchain network infrastructure, blockchain service providers, and distributed ledger technology developed by the Chinese government and adversaries, and would direct the Secretary of Treasury, Secretary of State, and Director of National Intelligence to develop a plan to prevent the risks posed by China and other foreign adversaries' development of these technologies.

The House passed Majority Whip Tom Emmer’s (R-MN) amendment to the FY 2024 Financial Services and General Government appropriations bill. The amendment would prohibit the SEC from using funds for enforcement activities related to digital asset transactions until Congress passes legislation that gives the SEC jurisdiction over digital assets. Emmer also criticized SEC Chair Gary Gensler in a speech on the amendment, calling his actions a "pattern of regulatory abuse... that is crushing American innovation and capital formation." However, the amendment is not expected to be adopted or signed in to law.

The Consumer Financial Protection Bureau (CFPB) released a proposal to supervise larger nonbank companies that offer services such as digital wallets and payment apps. A CFPB official noted that while the proposal could conceivably allow the agency to supervise larger crypto wallet providers, most of these wallets are not being used for the kinds of purchases that the transaction definition in the proposal would cover.

Federal Reserve Vice Chair for Supervision Michael Barr said at a DC Fintech Week event that stablecoins could amount to private money that might be destabilizing for the US financial system if left unchecked, and advocated for federal regulation. He stated that, "There is interest in strong, federal regulation of stablecoins that makes sure the Federal Reserve can approve, regulate and enforce against stablecoin issuers, including wallets."