- Crypto law is approaching the United States – and it is possibly to have a great influence over the future of the industry.
- The first major point to acknowledge while analyzing the current state of play of crypto regulatory framework in the United States is the contrast between the government’s legislative and enforcement access.
The legislative
From the legislative point of view, there has been a vital growth in crypto-related bill offers in the past year, such as Senators Cynthia Lummis and Kirsten Gillibrand’s Responsible Financial Innovation Act, Representative Josh Gottheimer’s Stablecoin Innovation and Protection Act of 2022, John Boozman’s Digital Commodities Consumer Protection Act 2022, etc. If these bills come to pass as offered, the crypto law and industry framework will witness vital changes, majority of which industry stakeholders have valued as positive.
The enforcement
From the enforcement point of view, there are many serious cases that – relying on their result – could adjust the crypto landscape within country. The most broadly recorded of these cases is the SEC v. Ripple in which the securities agency is taking action against blockchain company for reportedly operating an illicit security proposal by publicly selling XRP tokens.
The second serious case is SEC v. Wahi, where the securities agency is taking action on an ex-Coinbase employee and two co-schemer on insider trading charges.
Likewise, the third case is SEC v.Ian Balina where the authority has stated that Ethereum transactions should be acknowledged as ‘taking place’ in the United States as the Ethereum nodes are situated in the U.S more than any other country. Taking that point into consideration, SEC claims that Ethereum should fall under its authority.
CFTC is also taking steps according to the SEC. it is also taking action against decentralized autonomous organization and its token holders on charges of running an illicit subordinate trading venue. The CFTC succeeding this landmark case will set an awful exemplar for DeFi protocols and token holders by making sure they can be held responsible for many crimes such as “unincorporated associations.” this will successfully devastate DeFi, making it impossible for protocols and DAOs to operate without endangering prosecution.
Source: https://www.thecoinrepublic.com/2022/10/03/u-s-regulator-are-coming-for-crypto-what-is-the-future/