US Courts Restraining SEC Spark Hopes for Crypto Resurgence; Australia's Crypto Legislation Lags
Summary:
Recent court rulings restraining the Securities and Exchange Commission (SEC) in the United States have sparked hopes for a resurgence in the crypto industry. The rulings have challenged the SEC's stance that most digital assets are securities. Experts believe that as the courts rein in the SEC, the industry may ignite again. Additionally, concerns were raised about Australia's lagging crypto legislation compared to other jurisdictions.
There is anticipation of a potential revival of cryptocurrencies in the United States following recent court rulings that have restrained the Securities and Exchange Commission (SEC), as stated by a digital asset lawyer from K&L Gates. Jeremy McLaughlin, a partner at the law firm, highlighted how several U.S. court cases have challenged SEC chair Gary Gensler's assertion that most digital assets are securities. McLaughlin expressed optimism that the industry in the U.S. is reawakening after facing regulatory obstacles due to the involvement of the SEC and the Commodity Futures Trading Commission.
McLaughlin's comments were made during a panel discussion at Intersekt23 in Melbourne, where he was joined by Effie Dimitropoulos, the chief of payment services firm Novatti, and King Leung, the head of Invest Hong Kong's fintech division. He explained that early regulation of cryptocurrencies primarily occurred at the state level and was relatively straightforward. However, once the SEC and the Commodity Futures Trading Commission intervened, many companies withdrew from the U.S. market due to the SEC's aggressive stance. McLaughlin noted that now that the courts are reining in the SEC, there is hope for a resurgence of the crypto industry in the country.
In recent months, the SEC suffered setbacks in legal proceedings against crypto firms. On August 29, a U.S. District Court judge ruled against the SEC in the case involving Grayscale Investments' application to convert its Bitcoin fund into an exchange-traded fund. Additionally, in July, a judge ruled in favor of Ripple Labs in the SEC's case against them regarding XRP sales, stating that XRP did not qualify as a security when sold to retail traders. These developments have brought some optimism to the digital asset industry.
However, McLaughlin acknowledged the challenges faced by lawyers in the crypto space, as providing clear advice to clients is difficult due to the evolving regulatory landscape. He expressed frustration at being unable to provide definitive answers. Nevertheless, he believes that the industry is gradually emerging from the chaotic state of regulation, with recent court decisions favoring the digital asset industry.
During the panel discussion, the panelists were also asked about their views on Australia's crypto legislation compared to other jurisdictions. Effie Dimitropoulos of Novatti described Australia as "lagging" behind other countries, citing the introduction of new regulatory frameworks in Hong Kong and the European Union as evidence. She emphasized the challenges faced by Australian businesses operating with digital assets, including the need for expensive legal advice that might quickly become outdated. Dimitropoulos expressed disappointment at the lack of clear resolution and timing regarding the regulatory developments in Australia, supporting her assertion that the country's crypto regulations are falling behind.
This news story was originally published on Cointelegraph under the title "Hopes Rise for New Crypto Surge in US as Courts 'Rein in' SEC".
Published At
8/31/2023 5:43:00 AM
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