Cody Carbone’s Post

A stunner of a decision crept in just before New Year's, with a New York federal court holding in favor of the SEC that various crypto tokens were "securities" as a matter of law, including even a stablecoin, as I discuss in my recent Norton Rose Fulbright client alert, https://ow.ly/9Ikv50Qnvgo. Obviously not the last word, but the echoes from this will be reverberating for a while. #cryptocurrency #cryptoassets #stablecoins #blockchain #fintech #defi

HOW SUPREME COURT OVERTURNING CHEVRON DOCTRINE IS A WIN FOR CRYPTO - The U.S. Supreme Court's 6-3 ruling to overturn the Chevron doctrine, a 40-year-old precedent deferring to federal agencies' law interpretations, could benefit the crypto industry. - Majority Whip Tom Emmer stated that the decision will directly impact SEC Chair Gary Gensler, potentially limiting his regulatory reach over crypto firms. - Amanda Tuminelli from the DeFi Education Fund highlighted that executive agencies like the SEC and CFTC must now be more cautious in extending their regulatory authority without clear statutory authorization, especially in fields like crypto. - The ruling allows courts to determine the most appropriate interpretation of statutory law without deferring to agencies like the SEC, potentially leading to more favorable outcomes for the crypto industry. - The decision may prompt Congress to clarify existing statutory ambiguities and slow down regulatory enforcement actions against the crypto industry, with hopes for comprehensive regulation bills like FIT21 to progress.

Last week the US Supreme Court overturned the Chevron Doctrine. What this is likely to mean for crypto The Chevron doctrine is around 40 years old, and the essence of the doctrine was that courts were compelled to defer to agency interpretations of laws and statutes. The doctrine was originally rooted in the idea that agencies are experts in their arenas, possessing deep subject matter knowledge of the industries they regulate. The problem with this is that unelected agency staff became de facto policymakers, superseding the role of Congress. This is also why the SEC could behave as it has done in many crypto-related matters. Effectively deciding what constitutes an investment contract, what constitutes a security broker and so on in the crypto sphere, based on a legal framework that does not mention crypto with a word paired with very old, hardly related, and outdated court cases. The current "status" of crypto in the US has, after all, never been touched by Congress. Now, the Chevron Doctrine has been overturned, and the likely first implication of this is that US courts will now be able to make their decisions in crypto-related court cases without deferring to the SEC's interpretations. The SEC has already been losing a lot lately, and this will likely add to this wave. I expected that the SEC would lose most of the cases they have initiated within this industry, but now I am certain.

A new article in Bloomberg Law by Professors Douglas Eakeley and Yuliya Guseva discusses how new complaints against the SEC seek to insulate plaintiffs from enforcement actions and highlights the need for regulation in digital asset markets. https://lnkd.in/e2FgNnMW #sec #digitalasset #crypto

The CRA resolution overturning SAB 121 passed the Senate 60-38 and House 228-182, with McHenry stating that it protects essential custody services and consumers. Senators Kirsten Gillibrand (D-NY), Representatives French Hill (R-AR), Ritchie Torres (D-NY), and others have also urged regulators to state that SAB 121 is unenforceable after the Government Accountability Office deemed it a rule under the CRA. Recent developments in the US regulatory landscape, such as the SEC's sudden stance shift towards a spot Ethereum ETF approval, which was reportedly motivated by "political issues," and presidential candidate Donald Trump's crypto-friendly approach in his campaign, might increase the chances of Biden deciding not to veto the bill. Biden might want to stay on the good side of the crypto electorate share as the presidential race heats up. [

Ripple's legal head urges companies to build in countries with clear regulatory regimes amidst ongoing battles for clarity. How can businesses navigate the challenges of regulatory uncertainty? #Crypto #RegulatoryChallenges #DigitalAssets

The SEC’s Current Approach to Crypto Is Anathema to Sound Public Policy and the Rule of Law https://lnkd.in/exp2puU4

Legislative debate on #cryptoregulation in the US Congress - Legislative Debate: A new conflict arises in Congress over whether to include #digitalassets in #bipartisan #legislation aimed at restricting #lawmakers “#stocktrading” - #Bill Proposal: The bill, led by Reps. @Abigail Spanberger and @Chip Roy, would require lawmakers to put their stocks into #blindtrusts to #prevent #insidertrading. - #Crypto #Inclusion: Spanberger and others argue that #cryptoassets should be treated like #stocks due to their #speculative #nature and potential for #conflictofinterest. - Opposing Views: Roy opposes the inclusion of crypto, citing the need for individuals to “hedge against the dollar”. Meanwhile, the #cryptoindustry is gaining #influence and planning #significant #electionspending.

SEC Seeks to Appeal Ruling in Ripple-XRP Case The U.S. Securities and Exchange Commission (SEC) sent a letter to District Judge Analisa Torres on Wednesday seeking permission to file an interlocutory appeal to her judgment in the SEC v. Ripple case over XRP. An appeal is described as interlocutory when it is made before all claims are resolved to all parties. #appeal #buling #Crypto #Distributions #exchange #interluctory #law #letter #ripple #SEC #seeking #successfully #xrp

Ripple Is Meeting With The SEC Today; Here’s The Agenda