Regulation
White House Rejects FIT 21, Calls for Fair Crypto Laws
The White House has opposed the Financial Innovation and Technology for the 21st Century Act (FIT 21) due to lack of proper investor protection. This move comes even after the bill holds the possibility of influencing new legislation in the cryptocurrency market.
The statement also points out the willingness of the administration to work with the Congress in order to establish a better legal framework for the digital assets.
White House Rejects FIT 21
The US administration has officially voiced its opposition to the FIT 21 bill, which seeks to reform the market rules for digital assets. The White House has noted that the current version of the bill is insufficient in terms of consumer and investor protection in digital asset transactions.
“H. R. 4763 in its current form is inadequate in terms of consumer and investor safeguards,” the administration pointed out. This position points to a more extensive legislative strategy where it would be possible to include all the existing financial authorities into the array of the balanced legislation.
🚨NEW: The @WhiteHouse says it opposes passage of FIT 21 in its current form but also says it’s eager to work with Congress to “ensure a comprehensive and balanced regulatory framework for digital assets.” pic.twitter.com/CUP860dPsR
— Eleanor Terrett (@EleanorTerrett) May 22, 2024
Unlike previous occasions where the White House has threatened to veto other legislative initiatives, the administration has not ruled out further discussions with regard to FIT 21. This approach testifies to the continuous efforts to enhance the regulation of the digital assets, thus strengthening the position of the USA in the global financial space.
SEC Chair Gary Gensler Stance
Simultaneously, the Chair of the Securities and Exchange Commission, Gary Gensler, expressed equally intense criticism of the FIT 21 Act, noting that it will open new loopholes in the regulation of the cryptocurrency market and traditional financial markets. Gensler’s worries are especially on the possibility of creating a loophole for firms to escape a tough regulation from the SEC by simply declaring that they are decentralized.
This, he claims, could reverse the progress made in financial regulatory policies over the last few decades and make investors more vulnerable to risks.
Gensler’s statement also pointed out the possibility of using self-certification to bypass the securities laws and argued that bad players will be able to use it for fraudulent activities. This firm stand is indicative of the fact that the SEC continues to uphold high standards of investors’ protection in the domain of digital assets.
Concurrently, Graham Steele, a former Treasury official, opposed the regulation calling it a light-touch regulatory framework for cryptocurrencies.
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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.
A week after Custodia Bank filed an appeal in the 10th Circuit Court challenging the Fed’s power to deny it a master account, former Solicitor General Paul Clement has now filed an amicus brief on behalf of the crypto industry.
Paul Clement Takes Custodia Bank vs Fed Fight Ahead
As said, in the recent Custodia Bank vs. Fed case, Paul Clement filed an Amicus brief on Wednesday, July 3, while supporting the crypto industry. Clement has gained popularity in his recent success in overturning the Chevron Defence in the Supreme Court case in the Supreme Court case involving Loper Bright fishermen.
Also Read: US SEC Takes Major Blow In Chevron Howey Test Case, Implication For Crypto
In this ongoing legal fight, The Digital Chamber (TDC) and the Global Business Blockchain Council-USA (GBBC-USA) have expressed their significant interest and unique perspective. With extensive experience in the digital assets industry, the two organizations have argued that denying state-chartered banks a reliable path to participate in the national banking just because of the involvement with digital assets will threaten the growth and success of the trillion-dollar blockchain industry.
The two organization argue that upholding the lower court’s decision will give politically unaccountable federal officials and unchecked power to stiffle innovation thereby cutting off legitimate businesses from having crucial access to the global financial system.
The District Court stated that the “Federal Reserve Bank of Kansas City (“FRBKC”) has unreviewable discretion to denynonmember depository institutionsa master account”.
TDC and GBBC argued that despite following the legal boundaries, this court decision set dangerous precedence for any industry that might fall out with the Fed officials.
Paul Clement Raises Constitutional Concerns on Fed’s Structure
In the amicus brief, the former Solicitor General has raised some constitutional questions regarding the Fed’s structure. Clement states: “In sum, by affording Federal Reserve Bank presidents significant and largely unconstrained discretionary power, the district court’s decision raises serious constitutional questions under Article II.”
“The district court’s decision threatens the dual system by granting Federal Reserve Bank officials unreviewable discretion to “effectively crippl[e]” state-chartered banks operating legally,” he added.
Also Read: Custodia Bank CEO Predicts “Rip Roaring” Bitcoin Bull Market
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.
Kamala Harris has recently surged ahead of President Joe Biden in the prediction markets. This marks a significant shift in the political landscape as the 2024 U.S. presidential election race intensifies. However, the fight between Republican candidate Donald Trump and Biden isn’t over yet.
Kamala Harris Oversteps Biden In Betting Markets
On Predict It, Kamala Harris U.S. 2024 election winning bets surged to 22 cents while Biden’s dropped to 21 cents. Furthermore, Trump took the lead with a major gap as the bet was priced 59 cents on his win. Nevertheless, it could be too early to deem Harris as Trump’s ultimate opponent.
According to a new Reuters poll, President Biden is now neck-and-neck with his Republican challenger, Donald Trump, in the upcoming November election. This poll also reveals a shifting sentiment among Democrats, with approximately one-third believing Biden should consider stepping aside following a ‘ridiculous’ debate performance.
The debate in question has sparked internal discussions among Democrats. Moreover, some Biden loyalists are now questioning his viability for re-election in 2024. In addition, sources within the party indicate that Vice President Kamala Harris is emerging as the preferred candidate to step in should Biden decide to withdraw from the race.
Biden recently offered an explanation for his debate performance, admitting he “wasn’t very smart” for undertaking extensive travel before the event. “I didn’t listen to my staff… and then I almost fell asleep on stage,” he remarked during an event with Representative Don Beyer. “It’s not an excuse, but an explanation,” he added.
Also Read: U.S. Election Won’t Alter Positive Crypto Regulations, Says Mike Novogratz
The U.S. Election Race Intensifies
The political momentum appears to be shifting towards Trump, who now holds a 3-point advantage over Biden in key battleground states and a 2-point lead nationally. This change underscores a critical dynamic in the race: voter motivation. Currently, Republicans show higher enthusiasm, with more indicating they will “definitely” vote compared to their Democratic counterparts.
Over 90% of Biden and Trump supporters are firmly opposed to voting for the other candidate. Despite this strong partisan divide, the overall stability of the election race has not significantly changed. Biden experienced a brief uptick in support in June after Trump was convicted of felonies in New York. However, this did not significantly alter the broader election dynamics.
In light of the recent debate and shifting polls, the Democratic Party faces a pivotal decision regarding its candidate for the 2024 election. Kamala Harris’s rise in the prediction markets signals growing support within the party and among political analysts. If Biden’s campaign continues to face challenges, Harris may become the Democratic frontrunner.
Also Read: Binance Unveils Changes In Turkey In Compliance With Regulation
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.
Coinbase and Ripple Labs are using Binance’s pivotal legal victory to challenge ongoing cases with the U.S. Securities and Exchange Commission (SEC). Both companies argue that the SEC’s approach needs more clarity and consistency, necessitating formal rulemaking to better define the regulatory perimeter for digital assets.
Ripple, Coinbase Cite Binance Case Against SEC
Ripple Labs and Coinbase have intensified their legal defenses by referencing a recent court order involving Binance, which achieved a partial dismissal in its SEC lawsuit. The companies argue that this precedent highlights the need for the SEC to establish clear regulations. In its latest court filing, Ripple emphasized the judge’s remark that cryptocurrency does not align seamlessly with existing securities laws, such as those established by the 1946 Howey Test. This test is crucial for determining whether a transaction qualifies as an investment contract and thus falls under securities regulation.
Coinbase has concurrently voiced concerns over the SEC’s expansive interpretation of securities laws applied to the crypto industry. The exchange asserts that this broad application could be more extensive and better defined, pushing for a definitive rulemaking process to provide legal clarity. In its appeal, Coinbase cited the recent Binance ruling to bolster its case for rulemaking, arguing that the decision underscores the inconsistencies in current regulatory applications.
Also Read: Bybit Exchange Unveils Support For ASI Alliance, Will FET Rebound?
Coinbase Demands Clarity in SEC Regulatory Battle
The SEC has engaged with various cryptocurrency platforms and assets, deeming some of their operations as securities offerings without proper registration. In the case of Ripple, the SEC’s lawsuit initiated in December 2020 alleged that Ripple raised over $1.3 billion through sales of its XRP token, which the SEC classified as an unregistered security. However, in a significant turn, Judge Analisa Torres ruled that certain “programmatic sales” of XRP did not constitute securities transactions, introducing a nuanced interpretation Ripple now seeks to leverage to challenge broader SEC claims.
Coinbase faces similar regulatory scrutiny. The SEC argues that the platform operated as an unregistered securities exchange, a claim that Coinbase refutes, urging a formal rulemaking process to clarify these regulatory boundaries. Both Coinbase and Ripple use recent judicial outcomes, notably the Binance case, to argue for a more structured and transparent regulatory framework from the SEC, stressing that the current state of affairs is inefficient and unclear.
Crypto Firms Rally Around Binance Court Decision
The partial victory for Binance in its own SEC lawsuit has become a strategic reference point for other crypto entities embroiled in legal challenges with the regulator. Despite Judge Amy Berman Jackson’s decision to proceed with most of the SEC’s claims against Binance, her dismissal of the charge regarding secondary sales of Binance Coin (BNB) as securities has been perceived as a significant legal precedent. Coinbase and Ripple have particularly highlighted this aspect of the ruling in their ongoing litigation.
Further developments are anticipated, with a scheduled conference for the SEC’s case against Binance set for July 9. Meanwhile, Coinbase and Ripple continue to press for regulatory clarity, which they argue is crucial for the industry’s stability and growth.
Also Read: Genesis Digital Is Considering Going Public Via IPO In US: Report
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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