The SEC is accusing Binance.US of not cooperating in the agency’s probe of the company, according to a court filing.

Senate Banking Committee Chair Sherrod Brown (D-OH) sent a letter to Treasury Secretary Janet Yellen, SEC Chair Gary Gensler, and CFTC Chair Rostin Behnam regarding the lack of full disclosure in cryptocurrency markets. He urged the regulators to use existing tools to strengthen transparency and hold bad actors accountable.

The House Financial Services Committee Digital Assets Subcommittee held a hearing on CBDCs and stablecoins. Members agreed that a digital dollar in some form is inevitable, but Republicans are united in prohibiting a retail CBDC, while some Democrats see a government-run digital dollar as a potentially safer and more financially inclusive alternative to private stablecoins.

Rep. Stephen Lynch (D-MA) introduced the Electronic Currency and Secure Hardware Act (ECASH Act), which would direct the Treasury to develop and deploy an electronic version of the US dollar, capable of peer-to-peer transfers. The bill envisions offline transactions using hardware devices rather than relying on a blockchain. The bill has three original cosponsors– Reps. Ayanna Pressley (D-MA), Rashida Tlaib (D-MI), and Chuy Garcia (D-IL). Prospects for the bill are unclear at this time. Rep. Lynch also announced a new Congressional Digital Dollar Caucus, which he plans to use to foster discussion and education around the development of a US digital dollar.

US District Judge Lewis A. Kaplan rejected Sam Bankman-Fried’s effort to be released from jail to prepare for his trial.

US District Judge Edgardo Ramos sentenced Ruja Ignatova to 20 years in prison for his role in cofounding and promoting the $4 billion OneCoin pyramid scheme.

US Bankruptcy Judge John T. Dorsey approved FTX’s request to begin selling as much as $100 million of crypto per week from its hoard of $3.4 billion worth of cryptoassets, in order to raise money for creditors who claim they are owed tens of billions of dollars.

The SEC charged Stoner Cats 2 LLC with conducting an unregistered offering of crypto asset securities in the form of NFTs that raised approximately $8 million from investors to finance an animated web series. Commissioners Hester Pierce and Mark Uyeda dissented from the settlement, arguing that, "Rather than arbitrarily bringing enforcement actions against NFT projects, we ought to lay out some clear guidelines for artists and other creators who want to experiment with NFTs as a way to support their creative efforts and build their fan communities."

SEC Chair Gary Gensler testified before the Senate Banking Committee on September 12, defending the agency’s rulemaking pace and process. While many of the questions posed by Senators focused on the various rulemakings at the SEC, there were a few questions that touched on digital assets. At the hearing, Gensler stated that the SEC is too small, pointing specifically to a “daunting” amount of misconduct in the cryptocurrency sector. Committee Chair Sherrod Brown (D-OH) asked Chair Gensler if strong investor protections in crypto would help protect Americans from abuses, to which Gensler replied that there is significant noncompliance within the crypto industry, and investors must have complete information from companies when making investment decisions.