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.
Cryptocurrency investors in Japan are bracing for impact following a plan to reclassify digital assets as financial products. While the plan has elicited excitement from cryptocurrency enthusiasts in the Far East, the ambitious plan will have to scale several legislative hurdles.
Japan Targets Reclassification Of Cryptocurrencies As Financial Products
According to a report by Nikkei, Japan’s Financial Services Agency (FSA) is inching toward classifying cryptocurrencies as financial products. Per the report, the FSA intends to achieve the reclassification via an amendment to the Financial Instruments and Exchange Act.
Currently, digital assets in Japan are considered crypto assets conferred with property rights and seen as payment means. Under the FSA’s plans, cryptocurrencies in Japan will be treated as financial products in the same manner as traditional financial products.
The FSA says it will adopt a slow and steady approach toward the reclassification, carrying out “a private expert study group” to test the waters. If everything goes according to plan, the FSA will submit the amended bill to Parliament in early 2026.
The classification of cryptocurrencies as financial products will have far-reaching consequences for the local ecosystem. Experts say treating cryptocurrencies as financial products will bring Japan closer to a crypto ETF launch amid a changing regulatory landscape.
Furthermore, the move may lower current cryptocurrency taxation for local investors since existing capital market rules will apply to the asset class.
A Fresh Bill For Crypto Insider Trading Is Underway
Apart from the reclassification, the FSA disclosed plans for new legislation against insider trading. The move flows treating cryptocurrencies as financial products and will strengthen existing investor protection rules.
“It is a direction to establish a new insider trading regulation that prohibits trading based on unpublished internal information,” said the FSA. “We will develop laws to prevent unfair transactions.”
However, Japan’s cryptocurrency scene is heating up to a boil, driven by local and international players. Last week, stablecoin issuer Circle secured approval from the FSA for USDC with top exchanges set to list the stablecoin.
Japan’s Metaplanet has tapped Eric Trump to join its Strategic Board of Advisors as it continues to load up Bitcoin.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
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.
In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.
Bitcoin Rights Bill Comes Into Effect
Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.
In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:
The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.
The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.
The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.
On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.
Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.
Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.
Renewed Optimism Under Trump Administration
Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.
Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.
The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.
Featured Image from Unsplash.com, chart from TradingView.com
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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
This Is A Developing News, Please Check Back For More
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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