Regulation
Digital Chamber Files LEJILEX Amicus Brief in SEC Case
The Digital Chamber of Commerce has filed a motion for leave to file amicus brief in the existing lawsuit that is between LEJILEX and Crypto Freedom Alliance of Texas (CFAT) against SEC.
The organization intends to assist in the plaintiffs’ goal of blocking the SEC from governing the digital assets sector without a legislative basis.
Digital Chamber Files LEJILEX Amicus Brief
The Digital Chamber has joined LEJILEX and the Crypto Freedom Alliance of Texas in their legal fight against the Securities and Exchange Commission (SEC).
This filing was made to support the plaintiffs’ claim that the SEC has been acting beyond its jurisdiction in trying to regulate digital assets under securities laws even in the absence of clear legislation. The amicus brief focuses on the importance of having well-defined and equitable rules and guidelines that are not detrimental to the development of the digital asset industry.
We’re stepping in. We’ve submitted a motion for leave to file an amicus curiae brief in the case of @lejilex and @CryptoFreedomTX v. @SECgov. Our goal? To support plaintiffs’ efforts to end the SEC’s attempt to regulate the #digitalasset industry WITHOUT legislative authority.… pic.twitter.com/gfTkJxNFxr
— The Digital Chamber (@DigitalChamber) July 11, 2024
Subsequently, the brief states that the actions of the SEC could have dire consequences for not only LEJILEX and CFAT but the entire digital asset industry. It raises the issue that if the court does not step in, the SEC will keep on increasing its enforcement activities unjustly, and might categorize numerous digital assets as securities with no clear rules.
SEC’s Regulatory Approach
LEJILEX which is planning to launch a trading platform known as Legit. Exchange, in particular, is exposed to legal risks as the position of the SEC remains ambiguous. The firm claimed that it is impossible to apply for registration as a securities exchange or a broker since the SEC has not issued rules on the registration of digital asset trading platforms yet.
In launching their trading platform, the plaintiffs claim that they are at risk of being subjected to enforcement actions by the SEC for operating an unregistered securities exchange.
The amicus brief filed by the Digital Chamber also provides a wider perspective of the extent of the SEC’s actions, with previous enforcement actions against major companies such as Coinbase and Binance cited as examples of overregulation.
Need for Legislative Clarity and Innovation Support
According to The Digital Chamber, the current approach by the SEC is unconstitutional because it encroaches on the role of Congress in regulating the digital asset industry.
They advocate for appropriate cooperation between the SEC and other federal agencies together with Congress to formulate guidelines that would help guide the industry participants on compliance expectations. They argue that this is necessary in order to encourage innovation and develop the digital asset industry in the United States.
Perianne Boring of The Digital Chamber Foundation and CEO of The Digital Chamber said,
“With this motion we are trying to act before the SEC extends its authority beyond the legal bounds in anticipation of its overreach.”
Similarly, Coinbase has also supported LEJILEX by providing an amicus brief that opposes the SEC’s regulatory power. Paul Grewal, the Chief Legal Officer of Coinbase, has taken issue with the SEC’s expansive approach to regulation and has urged Congress to provide clear guidance on the regulation of digital assets.
Read Also: Rep McCormick Introduces Legislation To Secure Release of Binance Executive
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.
Regulation
“Crypto Dad” Chris Giancarlo Emerges Top For White House Crypto Czar Role
Chris Giancarlo, widely known as “Crypto Dad,” has emerged as the leading candidate for a newly proposed role of crypto czar in the White House under President-elect Donald Trump’s administration. The potential appointment underscores a strategic effort to advance crypto regulations and foster blockchain innovation in the United States.
This proposed position would be the first of its kind in the White House, aiming to bring clarity to the growing $3 trillion digital asset market. Chris Giancarlo, the former Chair of the Commodity Futures Trading Commission (CFTC), is known for his progressive approach to digital currencies and blockchain technologies.
Chris Giancarlo Leads Race for White House Crypto Czar Role Under Donald Trump
According to a Fox Business report, Chris Giancarlo is the top contender for the position of White House crypto czar, a role being considered by the Trump transition team to streamline crypto regulations and foster blockchain development.
As CFTC Chair from 2017 to 2019, Chris Giancarlo oversaw critical advancements in the digital asset space. This includes the launch of the first Bitcoin futures. He later co-founded the Digital Dollar Project, a nonprofit initiative exploring the potential of a U.S. central bank digital currency (CBDC). Giancarlo’s regulatory expertise and understanding of digital innovation position him as a key figure in shaping the future of the crypto sector.
The Trump administration aims to utilize this position to address industry concerns over the Biden administration’s perceived heavy-handed enforcement. The crypto czar would also collaborate with federal agencies to establish a framework for the $180 billion stablecoin market and enhance the overall regulatory landscape for blockchain and digital currencies.
Trump’s Strategic Approach to Digital Asset Policy
President-elect Donald Trump has expressed plans to make the U.S. a global leader in cryptocurrency and blockchain innovation. Part of this strategy includes appointing a crypto czar to advance policies to support the industry’s growth.
Trump has also proposed the establishment of a presidential crypto advisory council to address ongoing regulatory challenges. This initiative aims to align federal policies with industry needs, fostering a competitive environment for blockchain businesses. The council will explore the creation of a Bitcoin reserve as part of the administration’s broader crypto policy agenda.
The transition comes as current SEC Chair Gary Gensler announced his resignation effective January 20, 2025, coinciding with Trump’s inauguration. Gensler faced criticism during his tenure for his enforcement-driven approach to crypto regulations.
Amid speculation, Chris Giancarlo clarified that he is not pursuing the SEC Chair role. Giancarlo said in a recent statement,
“I’ve already cleaned up earlier Gary Gensler mess at the CFTC and don’t want to have to do it again.”
His focus remains on advancing crypto-friendly policies through a potential new role. According to the report, the “Crypto Dad” stated,
“I would be honored to be considered for the role.”
The creation of the crypto czar position could mark a pivotal moment in the evolution of U.S. crypto policy. With Chris Giancarlo leading the race, the industry anticipates advancements in crypto regulations under the new administration.
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.
Regulation
UK to unveil crypto and stablecoin regulatory framework early next year
- The UK will introduce unified crypto regulations, including stablecoins, in early 2025.
- New rules aim to simplify oversight and avoid restrictive staking classifications.
- Labour government aims to compete with EU’s MiCA rules and US pro-crypto policies.
The United Kingdom is set to introduce a comprehensive regulatory framework for cryptocurrencies, stablecoins, and crypto staking services in early 2025, marking a pivotal shift in its approach to digital assets.
The announcement was made by the Economic Secretary to the Treasury Tulip Siddiq at City & Financial Global’s Tokenisation Summit in London on November 21.
Initially slated for December 2024, the regulatory rollout was delayed due to the change in government following the election of Prime Minister Keir Starmer’s Labour administration in July 2024.
The upcoming UK crypto regulatory framework
The upcoming framework consolidates regulations for crypto assets into a single, overarching regime, a decision Siddiq described as “simpler and more logical.”
The framework aims to provide clarity in a rapidly growing sector that has faced uncertainty in the UK.
Stablecoins will receive distinct treatment under these regulations, as their functionality does not align with existing payment services rules.
Siddiq highlighted that staking services would also avoid being designated as “collective investment schemes,” a classification that could impose burdensome restrictions.
UK aims to align with the global crypto regulatory landscape
The UK government’s renewed focus on digital asset regulation comes as it seeks to align with global developments. The European Union’s Markets in Crypto-Assets (MiCA) regulations will be fully enforced by the end of 2024, offering regulatory certainty that has positioned Europe as an attractive market for the crypto industry.
Meanwhile, the US, under President Donald Trump’s administration, has adopted a markedly pro-crypto stance, including the establishment of a White House “crypto czar” and SEC Chair Gary Gensler’s planned departure in January 2024.
The Labour government has shown its intent to catch up with international competition. In September 2024, it introduced a bill recognizing NFTs, cryptocurrencies, and carbon credits as property.
The new regulatory push reflects the UK’s ambition to regain credibility as a crypto hub while addressing criticisms of the Financial Conduct Authority’s perceived stringent oversight.
By delivering a robust, streamlined framework, the Labour government aims to bolster the UK’s standing in the multibillion-dollar crypto industry.
Regulation
Gary Gensler To Step Down As US SEC Chair In January
In a recent development, the US Securities and Exchange Commission (SEC) announced that Gary Gensler will step down from his position next year. This follows calls for Gensler to resign since Donald Trump won the US presidential elections.
Gary Gensler To Step Down As US SEC Chair
The US SEC announced in a press release that Gary Gensler will depart the Agency on January 20, 2025. The US SEC Chair also confirmed this development in an X post. Interestingly, this comes on the same day that Donald Trump will be inaugurated as the 47th president of the United States.
Following the announcement, Gensler also used the opportunity to reflect on his time at the Commission. He remarked that it has been an “honor of a lifetime” to serve alongside those at the SEC. He also thanked President Biden for the opportunity to serve in the position. Gensler has been the US SEC Chair since April 2021. During his time, he has spearheaded several litigations against the crypto industry.
This includes the long-running legal battle with Ripple, which Gensler took over from his predecessor Jay Clayton, which bordered on whether XRP was a security. Up till now, the Agency continues to reiterate this ‘digital asset securities’ claim.
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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