Regulation
Judge Dismisses Most Ripple Claims, One Goes to Trial
Ripple has secured a procedural victory as a judge dismissed several claims in the Oakland class action lawsuit.
The U. S. District Court for the Northern District of California granted Ripple’s motion for summary judgment on federal class claims for unregistered securities and state law securities claims.
Dismissal of Ripple Federal and State Law Claims
Judge Phyllis Hamilton tossed out most of the class action claims against Ripple. Both the federal class claims for unregistered securities and the state law securities claims were dismissed, which is a procedural victory for Ripple.
However, the dismissal did not address the fundamental question of whether XRP is a security.
Ripple’s Chief Legal Officer, Stu Alderoty, showed his satisfaction with the court’s decision and said,
“We are glad that the California court has dismissed all the class action claims. The only individual state law claim that has been left will be addressed in the trial.”
XRP Security Status to Be Decided by Jury
However, the court stated that the status of XRP as a security is still uncertain even with the procedural wins. The court stated that it is for a jury to decide whether all three prongs of the Howey test are satisfied.
Besides the class action, another civil securities lawsuit against Ripple CEO Brad Garlinghouse will also go to trial. In this case, the court denied part of Ripple’s motion for summary judgment on the claim that Garlinghouse sold unregistered securities in 2017. The plaintiff alleges that Garlinghouse lied about being “very, very long XRP” while dumping millions of XRP on various exchanges.
However, legal expert Fred Rispoli noted on X that the likelihood of a settlement is high, given the low damages and potential negative jury verdict for Ripple if the plaintiff wins. Rispoli also stressed that the question as to whether XRP is a security or not remains unanswered and noted that federal legislation is required to address this issue.
The class action is now over at the district court level. As to whether XRP is a security, however, the Court held it is for a jury to decide whether all three prongs of the Howey test are met. That claim, a individual claim by one plaintiff, will go to trial (though…2/4
— Fred Rispoli (@freddyriz) June 20, 2024
Ripple’s attorneys stated that XRP does not fit the Howey Test’s definition of a security and therefore, the case should be thrown out. Nevertheless, Judge Hamilton decided that the case should proceed to trial and held that it cannot be decided as a matter of law that Ripple’s conduct would have led a reasonable investor to expect profits because of the company’s efforts.
Motions to Seal and Upcoming Deadlines
At the hearing, the court ordered both parties to reconsider their motions to seal any part of the briefs on the basis of the court’s decision to deny their motions. Both the parties have filed their unredacted briefs and have also moved the court to allow them an extra three weeks to file a motion to seal some of the exhibits they have used.
The court allowed this and set the new deadline to file the motion to seal with the narrowed grounds to July 8, 2024. As for the motion to seal, a separate order will be issued regarding the narrowed motion.
However, Judge Hamilton’s ruling is different from that of U.S. District Court Judge Analisa Torres in the Southern District of New York who held that XRP was not a security when sold to retail investors because it did not meet all the elements of the Howey Test.
Read Also: Jeremy Hogan Predicts No Clear SEC Win in Ripple Case Appeal
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.
-
Ethereum21 hours ago
Fundraising platform JustGiving accepts over 60 cryptocurrencies including Bitcoin, Ethereum
-
Market18 hours ago
South Korea Unveils North Korea’s Role in Upbit Hack
-
Market22 hours ago
Cardano’s Hoskinson Wants Brian Armstrong for US Crypto-Czar
-
Altcoin16 hours ago
Sui Network Back Online After 2-Hour Outage, Price Slips
-
Market21 hours ago
Litecoin (LTC) at a Crossroads: Can It Rebound and Rally?
-
Altcoin15 hours ago
Dogecoin Whale Accumulation Sparks Optimism, DOGE To Rally 9000% Ahead?
-
Altcoin20 hours ago
Why FLOKI Price Hits 6-Month Peak With 5% Surge?
-
Bitcoin13 hours ago
Marathon Digital Raises $1B to Expand Bitcoin Holdings
✓ Share: