Chamber of Digital Commerce: SEC Actions ‘Pose Separation of Powers and Due Process Concerns’

March 1, 2024 Bitcoin.com

Vivek Ramaswamy: Grayscale win ‘clears a path’ for Bitcoin innovation

August 31, 2023 Coin Telegraph

The Republican candidate also pledged to rescind all federal regulations that fail the Supreme Court’s major questions doctrine test in the West Virginia vs. EPA case — a potentially positive for crypto.

United States presidential candidate Vivek Ramaswamy has lauded Grayscale’s recent victory over the federal securities regulator, arguing the decision will help keep Bitcoin and blockchain innovation from going overseas.

In an Aug. 30 post on X (formerly Twitter) the pro-Bitcoin Republican candidate took shot at a “shadow” U.S. government, pointing the blame towards the “unlawful rogue behaviors of “3-letter government agencies” — presumably the Securities and Exchange Commission.

Ramaswamy said this has led to the U.S. courts to serve as a last line of defense to help keep cryptocurrency innovators in the country, adding that it shouldn’t have reached the courts in the first place.

“This decision is strong and clears a path to keep Bitcoin & blockchain innovation in the U.S. instead of overseas,” Ramaswamy explained.

The shadow government in D.C. is out of control & the federal courts are our *only* remaining line of defense against the unlawful rogue behaviors of 3-letter government agencies. This decision is strong and clears a path to keep Bitcoin & blockchain innovation in the U.S.… https://t.co/FsykKyQEVG
— Vivek Ramaswamy (@VivekGRamaswamy) August 30, 2023

Ramaswamy added that if elected, he would rescind all federal regulations that fail the Supreme Court’s test in the West Virginia vs. EPA case — a move that could potentially limit the SEC's overreach on the industry, depending if crypto qualifies as falling under the major questions doctrine.

However, the question as to whether the doctrine applies to the crypto industry is currently being tested in U.S. courts. While several amicus briefs were filed in support of Coinbase making the same argument, a recent court hearing in the Terraform Labs case ruled the doctrine doesn't apply to crypto tokens because its economic implications aren't significant enough.

Ramaswamy is one of three presidential candidates still in the running who has shown outward support for the crypto industry, along with Robert Kennedy Jr. and Ron DeSantis.

Tesla CEO and multibillionaire Elon Musk recently praised Ramaswamy for his acceptance of Bitcoin and pro-crypto advocacy, adding that he stands as a “very promising candidate.“

In late May, the presidential candidate began accepting Bitcoin for campaign donations.

Grayscale Investments' recent court victory against the SEC on Aug. 29 was lauded as a win for the cryptocurrency space and Bitcoin ETFs in particular.

BTC’s price increased 7.3% to $27,940 before cooling off to $27,200 at the time of writing, according to CoinGecko, while several analysts from Bloomberg noted that Grayscale’s win increases the likelihood of spot Bitcoin ETFs being approved by the end of 2023.

Magazine: Hall of Flame: Wolf Of All Streets worries about a world where Bitcoin hits $1M

Ripple case: SEC appeal unlikely as it gains from ‘current confusion’ — Haun Ventures CEO

July 17, 2023 Coin Telegraph

Analisa Torres

An immediate appeal could potentially jeopardize the SEC’s “entire enforcement agenda” if it ends up losing, said Katie Haun of Haun Ventures.

A former federal prosecutor turned chief executive of a crypto-focused venture capital fund says she would be “surprised” if the United States securities regulator lodges an immediate appeal against the Ripple case ruling, as it currently benefits from lack of “legal clarity.”

On July 13, Judge Torres granted a partial summary judgment in favor of Ripple Labs regarding XRP’s status as a security. At the time, a few commentators warned that an appeal from the SEC would be a possibility.

However, in a July 15 Twitter thread, Haun Ventures CEO Katie Haun explained that the securities regulator will likely stay quiet as it benefits from the “current confusion” and that losing an appeal could jeopardize its future enforcement actions.

Some non-legal advice musings on the Ripple decision, including two main takeaways:

1/ The Court drew a reasonable line and overall it's a good outcome for the industry. For other suits w/ the SEC, we believe the Supreme Court’s “major questions doctrine” will play a larger…
— Kathryn Haun (@katie_haun) July 15, 2023

“Anything is possible, but an immediate appeal seems unlikely both because the agency would have to ask the court to split this decision from the portion going to trial and because I’m skeptical the SEC actually wants legal clarity,” said Haun.

“The Commission benefits from the current confusion and losing these issues on appeal would jeopardize its entire enforcement agenda. So I’d be surprised if the SEC tried to appeal now.”

Haun is but the latest commentator to share the view.

On July 15, Ripple Labs CEO Brad Garlinghouse also believes it may “take years” before the SEC lodges an appeal. He added that an appeal by the SEC would only reinforce Judge Torres’ decision that XRP is not a security.

In a video posted on YouTube on the same day, U.S. lawyer and Ripple commentator Jeremy Hogan said he believes the SEC will launch an appeal after the trial between SEC and Ripple ends, which is scheduled for early 2024.

The SEC is currently suing crypto exchanges Binance and Coinbase over alleged violations of securities laws. Some believe the recent Ripple case ruling, while not a binding precedent, could have an impact on the outcome of the cases.

Meanwhile, many crypto commentators and lawmakers have called for Congress to take action and give legal clarity to crypto in light of the recent ruling.

Brian Quintenz, former commissioner of the Commodity Futures Trading Commission — now head of policy for venture capital fund a16z crypto — stated that the recent Ripple court ruling “only results in more uncertainty for entrepreneurs and builders.”

U.S. Senator Cynthia Lummis said the ruling underscores the urgent need for Congress to establish a clear and comprehensive regulatory framework for the cryptocurrency industry.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

Major Questions Doctrine