Regulation
Senator Cynthia Lummis Confirms Big Announcement In Bitcoin Conference
At the 10-year anniversary party of The Digital Chamber (TDC) in Nashville, Senator Cynthia Lummis hinted at a significant announcement regarding Bitcoin. This created a buzz within the cryptocurrency community. Moreover, Custodia Bank CEO Caitlin Long extended her support to Lummis and spotlighted the U.S senator’s impending announcement.
Senator Cynthia Lummis’ Major Announcement In Bitcoin Conference 2024
“Great to be in Nashville. Much to discuss,” Senator Cynthia Lummis wrote on X, quoting a post by The Digital Chamber that promised a notable revelation coming this Saturday. The Digital Chamber post noted, “At TDC’s 10 year anniversary party in #Nashville, Senator Cynthia Lummis hinted at a significant #bitcoin announcement coming this Saturday. Stay tuned for more details.”
According to a recent report, Senator Lummis plans to introduce groundbreaking legislation that could position Bitcoin as a strategic reserve asset for the US Federal Reserve. This move, if realized, could revolutionize the way digital currencies are perceived and integrated into the mainstream financial system. Hence, the latest statement in Nashville marks the first public acknowledgment of the impending announcement.
Earlier, Fox Business’ senior correspondent, Charles Gasparino, reported that Senator Cynthia Lummis aims to unveil this legislation at the Bitcoin Conference 2024. This bill would establish a pathway for the US Federal Reserve to hold Bitcoin as a strategic reserve asset, similar to gold and foreign currencies.
Additionally, Gasparino noted, “The Senator hopes to gain support from former President Donald Trump, who is also speaking at the event.” Furthermore, rumors have been swirling in the market that Donald Trump might announce Bitcoin as a US strategic reserve at the upcoming conference.
Dennis Porter, CEO of Satoshi Action Fund, fueled these speculations by claiming his sources are credible. Porter stated, “If the former U.S. President follows through, it could shift global economic strategies, reinforcing Bitcoin’s status as digital gold.”
Also Read: Bitcoin Conference: Donald Trump Plays ‘Uno Reverse’ On Kamala Harris
Significance Of The Bill
Moreover, A report from Fox Business elaborated on Senator Cynthia Lummis’ plan, revealing that she has been quietly working on this legislation. The bill’s primary goal is to direct the Federal Reserve to acquire and hold Bitcoin, integrating it into the US financial framework. The report suggests that Lummis might announce her intentions during the conference, possibly before Trump’s speech, aiming to secure his endorsement.
Alex Chizhik, Chief Commercial Officer at HarrisX, highlighted the potential significance of the bill. “Having the Federal Reserve hold Bitcoin as a strategic reserve asset would be a groundbreaking move, signaling the central bank’s embrace of innovation,” Chizhik noted. He added that this action could stabilize the U.S. dollar and bring legitimacy to Bitcoin as a financial asset.
Senator Cynthia Lummis, dubbed as the “Crypto Queen” on Capitol Hill, has been a vocal advocate for the cryptocurrency domain. She has expressed firm opposition to the implementation of Central Bank Digital Currencies (CBDCs), describing them as tools for government surveillance. Instead, she advocates for financial sovereignty.
“We want to make sure people can have individual wallets for their Bitcoin,” she stated. Lummis believes that integrating BTC into the US financial system could reinforce the strength of the US dollar. “We know that we want the US Dollar to remain strong. Having Bitcoin in reserves can actually help the US dollar to remain strong,” she asserted in a July post.
Political Odds
Adding to the complexity of the situation, Robert F. Kennedy Jr., another pro-crypto presidential candidate, has revealed his support for BTC. He plans to add a BTC reserve equivalent to the gold reserve, approximately $615 billion. “I am a huge supporter of Bitcoin,” Kennedy said at a recent conference.
This statement indicates that if either Trump or Kennedy wins the presidential race, the likelihood of a Bitcoin reserve may increase significantly. However, the political landscape remains uncertain.
Democrat candidate Kamala Harris, who believes Bitcoin is primarily used for “criminal” activities, also boasts significant odds of winning. Hence, her stance could complicate the potential for Bitcoin to be adopted as a strategic reserve asset.
Also Read: Kamala Harris Releases First Election Ad Ahead Bitcoin Conference
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
Texas Court Dismisses Consensys Suit Against SEC on Procedural Basis
The United States District Court for the Northern District of Texas dismissed Consensys Software Inc.‘s case against the Securities and Exchange Commission. This was after a long legal battle to determine the status of Ethereum and other similar software products.
Texas Court Ends Consensys Suit Against SEC
The U.S. District Court in Fort Worth has thrown out the allegations made by Consensys against the Securities and Exchange Commission in a recent legal move. The court, presided over by Judge Reed O’Connor, ruled on procedural grounds. The judge determined the claims concerning Ethereum classification and the regulatory approach to MetaMask were not ripe for judicial review. This decision effectively puts an end to the current litigation initiated by Consensys in April of this year.
The dismissal focused particularly on the lack of final agency action from the SEC, which the court noted was a requisite for a substantial legal challenge. This procedural dismissal indicates that despite the issues raised, the court decided not to proceed with evaluating the merits of the case.
Legal Battle Over Ethereum and MetaMask
Initially, Consensys challenged the SEC’s classification of Ethereum and its derivatives as securities. The complaint highlighted concerns over the SEC’s focus on MetaMask, a software service provided by Consensys that facilitates crypto transactions and staking.
Despite an earlier notification in June about the SEC dropping its investigation into Ethereum, the broader implications of this regulatory scrutiny remained a contentious issue.
Subsequent to the initial lawsuit, the SEC initiated a separate enforcement action in June, accusing Consensys of operating its MetaMask swaps service without proper registration.
In addition, according to Judge O’Connor, this case lacked the necessary finality from the Securities and Exchange Commission side to be considered ready for court adjudication.
Reactions and Future Regulatory Steps
The court’s decision to dismiss on procedural grounds does not conclude the legal issues surrounding the regulation of Ethereum and other blockchain technologies.
More so, Consensys has expressed its intention to continue advocating for blockchain developers and to challenge the SEC’s actions in other jurisdictions, indicating that the struggle over crypto regulation in the U.S. is far from over. The case’s dismissal in Texas does not preclude the blockchain company from pursuing other legal avenues to address their grievances.
In addition, most recently, a US Bankruptcy judge Brendan Shannon approved Terraform Labs plan to liquidate its assets following an ongoing SEC lawsuit.
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
UN Calls for Global AI Governance As Meta & OpenAI Face Challenges
AI News: The United Nations has issued seven recommendations for reducing the risks of artificial intelligence (AI) based on input from a UN advisory body. The final report of the council’s advisory body focuses on the importance of developing a unified approach to the regulation of AI and will be considered at a UN meeting scheduled for later this month.
AI News: UN Calls for Global AI Governance
The council of 39 experts noted that large multinational corporations have been able to dominate the development of AI technologies given the increasing rate of growth, which is a major concern. The panel stressed that there is an ‘unavoidable’ need for the governance of artificial intelligence on a global scale, since the creation and use of artificial intelligence cannot be solely attributed to market mechanisms.
According to the UN report, to counter the lack of information between the AI labs and the rest of the world, it is suggested that a panel should be formed to disseminate accurate and independent information on artificial intelligence.
The recommendations include the creation of a global AI fund to address the capacity and collaboration differences especially in the developing countries that cannot afford to use AI. The report also provides recommendations on how to establish a global artificial intelligencedata framework for the purpose of increasing transparency and accountability, and the establishment of a policy dialogue that would be aimed at addressing all the matters concerning the governance of artificial intelligence.
While the report did not propose a new International organization for the regulation, it pointed out that if risks associated with the new technology were to escalate then there may be the need for a more powerful global body with the mandate to enforce the regulation of the technology. The United Nation’s approach is different from that of some countries, including the United States, which has recently approved of ‘a blueprint for action’ to manage AI in military use – something China has not endorsed.
Calls for Regulatory Harmonization in Europe
Concurrent with the AI news, leaders, including Yann LeCun, Meta’s Chief AI Scientist and many CEOs and academics from Europe, have demanded to know how the regulation will work in Europe. In an open letter, they stated that the EU has the potential to reap the economic benefits of AI if the rules do not hinder the freedom of research and ethical implementation of AI.
Meta’s upcoming multimodal artificial intelligence model, Llama, will not be released in the EU due to regulatory restrictions, which shows the conflict between innovation and regulation.
“Europe needs regulatory certainty on AI”
An open letter signed by Mark Zuckerberg, me, and a number of European CEOs and academics.The EU is well positioned to contribute to progress in AI and profit from its positive economic impact *if* regulations do not impair open…
— Yann LeCun (@ylecun) September 19, 2024
The open letter argues that excessively stringent rules can hinder the EU’s ability to advance in the field, and calls on the policymakers to implement the measures that will allow for the development of a robust artificial intelligence industry while addressing the risks. The letter emphasizes the need for coherent laws that can foster the advancement of AI while not hindering its growth like the warning on Apple iPhone OS as reported by CoinGape.
OpenAI Restructures Safety Oversight Amid Criticism
In addition, there are concerns about how OpenAI has positioned itself where the principles of safety and regulation of AI are concerned. As a result of the criticism from the US politicians and the former employees, the CEO of the company, Sam Altman, stepped down from the company’s Safety and Security Committee.
This committee was formed in the first place to monitor the safety of the artificial intelligence technology and has now been reshaped into an independent authority that can hold back on new model releases until safety risks are addressed.
The new oversight group comprises individuals like Nicole Seligman, former US Army General Paul Nakasone, and Quora CEO Adam D’Angelo, whose role is to ensure that the safety measures put in place by OpenAI are in line with the organization’s objectives. This United Nations AI news comes at the heels of allegations of internal strife, with former researchers claiming that OpenAI is more focused on profit-making than actual artificial intelligence governance.
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
SEC requests for more time to produce documents in Coinbase case
- SEC reportedly seeks an extension to February 2025 for it to provide case documents to Coinbase.
- Coinbase, Binance and Kraken all facing SEC lawsuits.
The US Securities and Exchange Commission has filed for an extension from the court, asking for more time as it looks to provide documents related to its case against crypto exchange Coinbase. Cointelegraph reported this on Sept. 19
SEC asks for extension
Court documents filed on Sept. 18 reveal that the SEC wants the court to extend the timeline for them to furnish Coinbase with key material by four months.
The regulator filed its request at the US District Court for the Southern District of New York, and if granted, will see it have until February 2025 for the deadline to share over 133,000 documents.
SEC’s court filing comes a month to the end of the initial timeline on Oct. 18, which is when the securities watchdog was to hand over documents as part of the case’s discovery proceedings phase. According to the regulator, an extension will allow it to produce the necessary documents.
SEC has sued several crypto companies
These latest developments in the SEC vs. Coinbase lawsuit adds to several others in recent months and weeks. It includes court filings and verdicts in the regulator’s cases against crypto exchanges Binance and Kraken, which are the other major industry players in a legal battle with the SEC.
Both the courts and US lawmakers have taken issue with the SEC’s use of the term “digital asset securities’. This is part of the main allegations against crypto exchanges, with the regulator alleging securities laws violations by these firms.
The term ‘digital asset security’ does not appear anywhere in any law enacted by Congress or in any rule promulgated by the SEC or in any decision rendered by the Supreme Court. It appears nowhere in the 2 million pages of the Federal Register. If it comes from neither statute… pic.twitter.com/ucSaCzEvOU
— Rep. Ritchie Torres (@RepRitchie) September 19, 2024
In 2020, the agency sued Ripple Labs over the XRP cryptocurrency – a case that dragged for three years before a notable ruling in July 2023 declared XRP not a security. The regulator also reached a $4 billion settlement with Terraform Labs.
A judge denied Kraken’s motion to dismiss the SEC’s lawsuit agaisnt the exchange in August this year.
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