This week marks a significant moment in the legal realm of cryptocurrency as several high-profile cases take centre stage in courtrooms. Let’s delve into the key developments unfolding in the legal landscape:
Custodia Bank vs. Federal Reserve: Notable Legal Talent Enters the Fray
Today marks a pivotal moment as Custodia Bank’s legal representatives, including prominent figures Ian Gershengorn and Michelle Kallen, step into the courtroom to contest against the Federal Reserve. With both lawyers renowned for their contributions to significant Supreme Court cases, Custodia Bank’s appeal regarding its application for a Federal Reserve master account holds implications that extend far beyond the immediate case, potentially influencing the regulatory stance of the U.S. market towards cryptocurrencies.
SEC vs. Coinbase: Crucial Responses Awaited in Two Legal Clashes
May 10th holds significant importance for the ongoing legal battles between the Securities and Exchange Commission (SEC) and Coinbase. On this date, the Commission faces a deadline to submit responses to two separate cases against Coinbase.
Response to Interlocutory Appeal:
Coinbase’s plea for an interlocutory appeal centres around a critical question regarding the definition of an investment contract. The appeal seeks to address whether a transaction must entail contractual obligations post-sale to be considered an investment contract. A favourable ruling on this appeal could potentially redefine the SEC’s jurisdiction over crypto transactions.
Response to SEC’s Refusal of Crypto Rule-Making:
Simultaneously, Coinbase challenges the SEC’s reluctance to establish clear regulatory frameworks for the crypto industry. The SEC is expected to file its response brief by May 10th to elucidate its stance on this contentious issue.
Robinhood Faces SEC Scrutiny: Wells Notice Issued
In the latest development, Robinhood’s crypto arm finds itself under the SEC’s microscope after receiving a Wells notice, a prelude to potential enforcement actions. This notice stems from previous investigative subpoenas received by Robinhood. Despite assertions from Dan Gallagher, Robinhood’s Chief Legal, Compliance, and Corporate Affairs Officer, that the listed assets on their platform are not securities, the SEC’s actions add another layer of regulatory pressure to the crypto space, following similar actions against Coinbase and Kraken.
What Lies Ahead?
With three significant cases unfolding this week alone, the legal landscape of the cryptocurrency industry is poised for upheaval. Stay tuned for updates on these legal battles and any unforeseen developments that may arise, shaping the future trajectory of crypto regulation.
Discussion about this post