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Coinbase Files Two New Motions In Bid To Gain Regulatory Clarity

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7 hours ago

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Coinbase has filed two new requests based on the Freedom of Information Act (FOIA) as they seek to gain regulatory clarity for the crypto industry and crypto assets in general. The crypto exchange’s Chief Legal Officer (CLO), Paul Grewal, revealed the details of the filings and mentioned the documents they hoped to obtain with each request.

Coinbase Files New Motions To Gain Regulatory Clarity

Coinbase’s CLO Paul Grewal revealed in an X post that they had filed two new sets of FOIA requests in their continued effort to gain clarity on how US regulators are approaching digital assets. He remarked that they will not relent in their efforts to provide the industry with some clarity. Grewal went on to provide insights into the specific details of each request.

He mentioned that the first request was for documents about a digital asset deposit cap that the Federal Deposit Insurance Corporation (FDIC) and other banking regulators had imposed on financial institutions. Meanwhile, the second is a request for logs showing how these agencies handle other FOIA requests. He remarked that these requests are separate from their FOIA filings from over a year ago, which are now the subject of federal lawsuits.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

CFTC Presses for Clear Laws on Crypto and Predictive Election Bets

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25 mins ago

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October 21, 2024

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The Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam recently emphasized the need for congressional action on cryptocurrency regulation and the oversight of predictive election betting. At the annual meeting of the Securities Industry and Financial Markets Association (SIFMA), Behnam outlined the urgency of establishing clear legal frameworks for these rapidly evolving sectors.

CFTC Calls for Urgent Action on Crypto Regulations and Election Betting Laws

At the SIFMA annual meeting, CFTC Chair Behnam reiterated his long-standing request for Congress to clarify its stance on crypto regulations. While acknowledging the rapid technological changes and the increasing prominence of digital assets, Behnam expressed concern about the current regulatory framework. He believes the framework lacks clarity to properly govern cryptocurrency markets.

Moreover, Behnam highlighted that the lack of comprehensive crypto regulations has left gaps in the system, particularly concerning the regulation of spot markets and the broader implications of blockchain and tokenization technology in financial markets. He stated,

 “Digital assets come top of mind when it comes to regulating spot markets, but the broader question is, what is blockchain and tokenization going to do for financial markets?” 

Behnam urged Congress to provide more explicit guidance on these issues.

Despite the pressing need for clearer laws, CFTC Chair expressed skepticism about the possibility of any meaningful legislative action on crypto regulations this year. Given the short legislative calendar and the focus on other urgent matters like passing a federal budget. He suggested that significant progress might have to wait until after the 2024 elections.

The Debate Over Predictive Election Betting

In addition, Behnam also called for legislative clarity on predictive election betting. The CFTC has found itself at the center of this issue, particularly regarding prediction markets that allow users to bet on the outcomes of events, including elections. Behnam noted that while these markets provide valuable forecasting tools for various sectors, they raise legal and ethical concerns when it comes to elections.

The CFTC has consistently maintained that contracts betting on election outcomes are unlawful. Behnam expressed frustration over the agency being placed in the role of an “election cop.” He suggested that the regulation of such markets should fall under more explicit legal guidelines set by Congress. He stated, 

“This is a classic area where Congress should weigh in.”

Additionally, the debate over election betting has recently come to a head in a legal battle between the CFTC and Kalshi, a predictions market platform. Last year, the commission blocked Kalshi from offering election contracts, arguing that such offerings were against the public interest. Kalshi responded by suing the commission, leading to a legal dispute that remains unresolved.

In September 2023, a federal court ruled that the commission had overstepped its statutory authority in attempting to block Kalshi’s election contracts. Despite this ruling, the CFTC has continued to fight the decision, filing an appeal last month. 

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ripple CLO Reveals The Likely Outcome Of The SEC Appeal

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1 day ago

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October 20, 2024

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Stuart Alderoty, the Chief Legal Officer (CLO) of Ripple, recently provided an insightful perspective on the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). As the case progresses, Alderoty suggests that the possibilities range from a full affirmation of Judge Torres’s decision by the Second Circuit to a potential expansion of her rulings. 

A less likely outcome, according to Alderoty, could see the case remanded back to Judge Torres for further deliberation.

Ripple CLO Stuart Alderoty Shares Major Insight Ahead of SEC Appeal

In a recent post on X platform, Alderoty suggested that the Second Circuit, might either affirm the decision by Judge Analisa Torres or possibly expand on her ruling. Further, Ripple CLO expressed confidence in the XRP company’s position, noting that the best outcome the SEC could hope for would be a remand to the lower court. 

He highlighted the improbability of the appeal succeeding in overturning Judge Torres’s original decisions, suggesting that the best the SEC could hope for would be a remand.

Such a scenario would reopen Ripple’s original defenses, including the “Fair Notice” defense. This defense questions whether a party of ordinary intelligence would have known that their actions were against the law.  Alderoty said,

“ The SEC could end up arguing to Judge Torres that she wasn’t a person of ‘ordinary intelligence’ when she ruled against them. Awkward.”

Additionally, the Ripple CLO drew an analogy between the SEC’s persistent legal pursuit and the literary work “Moby Dick,” with SEC Chair Gary Gensler cast in the role of Captain Ahab. More so, Ripple CLO humorously added that the situation now mirrors comedic elements similar to the movie “My Cousin Vinny.” This light-hearted comparison underscores the perceived overreach and determination of the SEC in its regulatory enforcement against Ripple.

Previous Rulings and Community Reactions

In the earlier stages of the litigation, the court ruled in favor of Ripple, rejecting the Securities and Exchange Commission’s arguments regarding XRP status as a security. Most recently, Alderoty shared updates with the XRP community, reassuring them that the verdict that “XRP is not a security” remains unchallenged. This clarification boosted community sentiment, with expectations of a potential rebound in XRP price.

In addition, legal analysts like James Murphy and Fred Rispoli, along with former Securities and Exchange Commission lawyer Marc Fagel, have commented on the proceedings. They highlighted that while the SEC opted not to appeal the decision on disgorgement during the remedies phase, the final judgment remains open for argument in the appellate briefs. 

However, despite the Ripple vs SEC legal challenges, the impending launch of its RLUSD stablecoin could elevate XRP price towards $2 milestone.

At press time, XRP price is $0.54, marking a 3.5% increase over the past week. The cryptocurrency’s market cap stands at $30 billion, with a 24-hour trading volume of $622 million.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Lawyer Calls Out Mistakes In Brad Garlinghouse & Chris Larsen’s Deal

Published

3 days ago

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October 19, 2024

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Fred Rispoli, a lawyer in the Ripple vs SEC case, has criticized Brad Garlinghouse and Chris Larsen for agreeing to drop only some of the charges that the U.S. Securities and Exchange Commission (SEC) has leveled against them. According to Rispoli, the executives should have sought for the dismissal of all the charges instead of coming to a partial settlement.

Fred Rispoli Criticizes Brad Garlinghouse and Chris Larsen’s Deal

Through a series of posts on the X platform, Fred Rispoli, a lawyer, pointed out what he called blunders in the legal approach that Garlinghouse, Ripple’s CEO, and Larsen, the company’s executive chairman, took. 

He personally expressed concern with their decision to drop some of the claims while not seeking a full trial on the “aiding and abetting” charges raised by the US SEC.

In the view of Rispoli, Ripple’s leaders were in the best position to defend themselves against the SEC’s allegations, especially the “Institutional Sales” claim, which would only hold if there was evidence of recklessness. He stated that the agency lacked compelling evidence to meet that burden, and a jury would likely have been frustrated by the SEC’s case, possibly resulting in a unanimous verdict in favor of Garlinghouse and Larsen.

Missed Opportunities for Key Testimonies in Ripple vs SEC Case

Rispoli also added that had Ripple CEO Brad Garlinghouse and Larsen proceeded to trial, there was a possibility that potential witnesses would have come into the picture. He said that the SEC’s former chairman Jay Clayton and its former co-director of the corporation finance division Bill Hinman, alongside other industry players, might have been called to give evidence. 

These testimonies in the Ripple Vs SEC case could have given a clue on internal SEC determinations regarding the classification of cryptocurrencies, specifically XRP.

Additionally, a trial would have allowed presenting some documents that were previously shielded from discovery. Rispoli noted that this could have been advantageous for Ripple and other digital currency companies in the future as the data disclosed could be applied in legal concerns with the US SEC.

Ripple’s Cross-Appeal and the SEC’s Latest Move

In response to the SEC’s ongoing attempts to appeal certain aspects of a 2023 judgment given by the U.S. District Judge Analisa Torres, Ripple Labs filed a cross-appeal. In her decision, Torres stated that Ripple’s sales of XRP to retail investors on digital platforms were not securities sales. 

However, the regulator is now appealing other parts of the decision in the Ripple Vs SEC case, including the firm’s institutional sales, and the distribution of XRP for non-cash considerations.

Stuart Alderoty, Ripple’s legal chief, also sounded optimistic about the case stating that the agency’s appeal would not go well. “I felt good about our case in the Southern District of New York. I feel even better about our case in the Second Circuit,” Alderoty said in a recent interview.

US SEC’s Filing Deadline and Response

Some controversy had arisen regarding whether the SEC filed its brief within the time allowed for filing an appeal. Some of the X users argued that the agency failed to file its Form C within the 14 days’ period for filing the appeal in the Ripple Vs SEC case. The form itself had been submitted on October 16 while the Second Circuit’s docket reflected the filing as having been made on October 17 thus raising questions as to the validity of the filing.

When asked about the deadline of the filing, the US SEC spokesperson said, “It was filed on time.” Meanwhile, despite all this, the US SEC’s appeal doesn’t challenge the part of the decision that states that XRP sales to retail investors through exchanges are not securities. That decision is still valid, still leaving the court’s finding that XRP is not a security when sold to retail investors intact.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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