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Elon Musk Deems Donald Trump’s Conviction “Great Damage” To Public Faith

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Elon Musk, CEO of Tesla and SpaceX, has weighed in on the recent conviction of former President Donald Trump. Musk expressed his concerns on X, formerly known as Twitter. Moreover, he vehemently criticized the court ruling for negatively impacting the public faith. Whilst, this incident hasn’t significantly affected Trump’s election odds, which earlier was deemed important for a pro-crypto revolution in the U.S.

Elon Musk Backs Donald Trump

“Indeed, great damage was done today to the public’s faith in the American legal system,” Elon Musk wrote on X. In addition, Musk questioned the motivations behind the conviction, suggesting it was politically driven rather than a pursuit of justice.

“If a former President can be criminally convicted over such a trivial matter – motivated by politics, rather than justice – then anyone is at risk of a similar fate,” he added. Donald Trump, the first former US president to be convicted of a crime, was found guilty of falsifying business records on Thursday, May 30.

This verdict stems from his efforts to conceal a hush money payment to adult film actress Stormy Daniels. Moreover, Trump faced 34 counts and was found guilty on all. With the ruling in, Trump now faces significant legal and political ramifications.

Now, Judge Juan Merchan must approve the verdict and enter a final judgment, typically a formality. Sentencing usually follows within several weeks, but legal arguments could delay this process. Furthermore, both sides will recommend sentences, which will be debated at the sentencing hearing where Merchan will make the final decision.

Moreover, Trump is expected to appeal the conviction. He may argue that the indictment was legally flawed and politically motivated. In addition, his defense will likely focus on several legal points. These include that state election laws do not apply to federal elections and that the charges themselves were legally improper.

Will A Prison Sentence Be Considered?

In the public domain, the big question now is whether Trump will go to prison. While the maximum sentence for falsifying business records is four years, it is rare for first-time offenders of this crime in New York to receive prison time. Experts deem fines or probation as a possible punishment in this case.

Given the logistical challenges of imprisoning a former president with a lifetime Secret Service detail, alternatives like home confinement or curfews could be considered. Despite the conviction, Trump can still run for 2024 presidential elections.

The US Constitution only requires that presidents be at least 35 years old, natural-born US citizens, and have lived in the country for 14 years. Even if he were in jail, Trump could theoretically be sworn in as president on January 20, 2025. As long as Trump is not imprisoned in New York, he can vote for himself. Florida defers to other states’ rules on felony disenfranchisement.

In New York, felons regain their voting rights once they are out of prison, even if on parole. The Republican National Convention, scheduled shortly after his sentencing, has no rules disqualifying a convicted nominee. Trump remains popular among the GOP base, and the party’s leadership is aligned with him.

Also, the broader implications of this conviction are significant. It marks unprecedented territory in US politics, especially as Trump faces three other criminal cases. The Manhattan jury found Trump guilty on all 34 counts after deliberating for two days. The trial included explicit testimony and evidence that implicated Trump in approving a $130,000 payment to silence Stormy Daniels during the 2016 campaign.

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US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

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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.

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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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Sonic Labs To Abandon Plans For Algorithmic USD Stablecoin, Here’s Why

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Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.

Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin

In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.

Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.

Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.

“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.

In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.

Industry Players Are Bracing For New Stablecoin Regulations

Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.

For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.

Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.

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FDIC Revises Crypto Guidelines Allowing Banks To Enter Digital Assets

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The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.

New FDIC Guidelines on Crypto-Related Activities

The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.

Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.

This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.

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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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