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Supreme Court of India’s Youtube Channel Hacked to Promote XRP Scam

Supreme Court of India’s Youtube Channel Hacked to Promote XRP ScamThe Youtube channel of India’s Supreme Court was compromised, promoting a scam involving XRP cryptocurrency instead of its usual live hearings. The breach temporarily shut down the channel, but services resumed later that day. Ripple CEO Brad Garlinghouse responded, condemning the exploitation of crypto users. XRP Scam Promoted on Supreme Court of India’s Youtube Channel […]

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Crypto won big in the Supreme Court’s Loper Bright decision

The Supreme Court ended the Chevron doctrine in June — significantly undermining the Securities and Exchange Commission's ability to stand athwart crypto.

What do fishing boats, truck stops, and the Securities and Exchange Commission (SEC) have to do with each other? Quite a bit if you have been following recent decisions from the Supreme Court of the United States (SCOTUS). 

In what is shaping up to be a watershed moment for the federal government’s power to regulate tech startups, SCOTUS handed down a June 28 decision — Loper Bright Enterprises v. Raimondo — that created two new ways to challenge federal agencies that have tried to expand their reach to crypto.

For years, crypto startups have been struggling to get out of a regulatory gray area. Agencies such as the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Treasury Department have all undertaken efforts to extend their reach into this rapidly evolving industry. Most startups face a barrage of compliance challenges, and crypto has perhaps faced the most.

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Uniswap cites Chevron in another urge for SEC to drop bid to rule over DeFi

Uniswap Labs argues the SEC’s proposed legal amendments to give it power over DeFi are being made against “a legal backdrop that no longer exists.”

Uniswap Labs, the developer behind the Uniswap decentralized exchange, has again pressed the US Securities and Exchange Commission to drop its proposal to rule over decentralized finance (DeFi), citing a recent landmark Supreme Court decision.

Since at least April 2023, the SEC has proposed expanding the definition of what qualifies as an exchange in the Exchange Act of 1934 — explicitly arguing that it should include crypto market participants in DeFi.

Uniswap has been among those arguing against it. In a July 9 letter, Uniswap added further arguments following a comment letter it sent last month, calling for the SEC to drop its proposed amendments.

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Supreme Court’s Chevron Ruling Seen as ‘a Game Changer’ for Crypto Industry

Supreme Court’s Chevron Ruling Seen as ‘a Game Changer’ for Crypto IndustryThe U.S. Supreme Court has struck down Chevron deference, a doctrine that allowed federal agencies broad discretion in interpreting ambiguous statutes. This decision is seen as a pivotal shift towards greater regulatory clarity and judicial oversight, especially impacting the digital assets sector. Supreme Court Overturns Chevron Deference, Paving Way for Regulatory Clarity in Digital Assets […]

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US Supreme Court to Hear Nvidia’s Bid to Dismiss Crypto-Related Lawsuit

US Supreme Court to Hear Nvidia’s Bid to Dismiss Crypto-Related LawsuitThe U.S. Supreme Court has agreed to hear Nvidia’s appeal to dismiss a securities fraud lawsuit accusing the company of misleading investors about its sales to the cryptocurrency industry. Nvidia’s appeal follows a lower court’s decision to revive a class-action lawsuit. The suit alleges that Nvidia and its CEO, Jensen Huang, downplayed the impact of […]

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US Supreme Court Rules Against Coinbase in Dogecoin Sweepstakes Dispute

US Supreme Court Rules Against Coinbase in Dogecoin Sweepstakes Dispute

The Supreme Court of the United States is ruling against crypto exchange Coinbase in the Dogecoin (DOGE) sweepstakes dispute. According to new legal documents obtained by Cornell Law, the Supreme Court unanimously ruled that the conflict between Coinbase’s sweepstakes contract and user agreement must be determined through the court system. As stated by Justice Ketanji […]

The post US Supreme Court Rules Against Coinbase in Dogecoin Sweepstakes Dispute appeared first on The Daily Hodl.

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El Salvador pro-Bitcoin president Nayib Bukele launches re-election bid

Despite Bukele’s popularity, some critics argue he isn’t eligible to be re-elected under El Salvador’s constitution.

El Salvador president Nayib Bukele has filed paperwork to be re-elected in the country’s upcoming 2024 presidential election in February.

Bukele, a Bitcoin advocate, received strong support from the public on Oct. 26 after he was officially nominated by his party to run for re-election.

“Five more [years], five more and not one step back,” Bukele said in a speech in front of thousands of El Salvadorans. “We need five years to continue improving our country,” he added.

Bukele rose to power in 2019 when his political party, Neuva (New) Ideas, broke three decades of two-party dominance between the Nationalist Republican Alliance and the Farabundo Martí National Liberation Front (FMNLB).

However, despite his popularity among the local population, critics such as El Salvadoran lawyer Alfonso Fajardo maintain that the country’s constitution prohibits Bukele isn’t eligible to seek a second consecutive term.

“Today is a good day to remember that immediate presidential re-election is prohibited up to 7 times by the Constitution,” he said on Oct. 26.

However, in September 2021, El Salvador’s Supreme Court ruled that presidents can run for consecutive elections.

New Ideas is backed by 70% of the country’s voting population, according to Reuters, which cited a study by an El Salvadoran university. Its closest competitor only received 4% of the total votes.

One of New Ideas’ competitors, FMNLB, filed a lawsuit in June 2021 claiming Bukele’s Bitcoin adoption program is unconstitutional. However, that complaint made little ground as Bukele and El Salvador made Bitcoin legal tender three months later September 2021.

The Bukele government has also implemented other tech-friendly policies aimed at strengthening the country’s economy, such as eliminating all taxes on technological innovations.

Gabor Gurbacs, a VanEck strategy advisor, recently said that El Salvador has the potential to become the “Singapore of the Americas.”

Related: El Salvador launches first Bitcoin mining pool as Volcano Energy partners with Luxor

Much of Bukele’s popularity comes from his heavy-handed crackdown against MS-13, a multi-national gang which contributed towards El Salvador recording the highest homicide rates in the world six years ago.

As a result of the crackdown, El Salvador's homicide rate has fallen a staggering 92.6% from its peak of 106 per 100,000 inhabitants in 2015 to 7.8 in 2022. It now boasts one of the lowest crime rates in Latin America.

However, the United Nations and other critics argue El Salvador breached human rights laws by imprisoning 65,000 without affording them legal rights to defend themselves.

El Salvador’s presidential election will take place on Feb. 4, 2024.

Magazine: What it’s actually like to use Bitcoin in El Salvador

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Robinhood beats investors’ appeal in GameStop meme stock case

The appeals court judge said Robinhood “had the right” to impose restrictions on meme trade purchases.

A United States federal appeals court has upheld a decision to dismiss an investor class action lawsuit against online brokerage firm Robinhood Markets over its meme stock trading debacle in early 2021.

A total of 16 investors took part in a class action lawsuit against the trading platform in September 2021, alleging the firm restricted them from purchasing 13 “meme stocks” when hedge funds were being short squeezed in January 2021.

This stopped them reaping the profits and also caused the share prices of these stocks to plummet, they alleged.

Robinhood won a motion to dismiss the complaint in January 2022, citing the plaintiff's failure to state a claim, plaintiffs then went on to argue the decision in the U.S. appeals court in March 2023. 

However,  it appears the investors have hit another setback as the appeals judge has upheld the decision to dismiss the lawsuit, with U.S. Appellate Court Judge Britt Grant saying the arguments lacked legal merit. 

She explained that Robinhood “had the right to do exactly what they did” because they were not legally obligated to protect these investors from pure economic loss.

This is because Robinhood was, and still is legally permitted to restrict its customers’ ability to trade securities and to refuse to accept any of their transactions, Judge Grant added.

The U.S. Appellate Court’s concluding remarks, affirming the lower court’s decision to dismiss the plaintiff’s case.

If the investors decide to pursue the matter further, their next and final route will be through the U.S. Supreme Court — the highest court in the U.S. However, they will need to file a petition for a "writ of certiorari," which is a document asking the Supreme Court to review the case.

The Supreme Court takes on about 100-150 cases from over 7,000 reviews, so the plaintiff’s chances of having its case heard once more are likely slim.

Related: Robinhood turns profitable in Q2, but crypto revenue declines

The GameStop short squeeze happened in January 2021, which was initially triggered by users of the /wallstreetbets subreddit.

The strategy of the short squeeze was to cause big losses for Wall Street firms shorting these particular stocks, and by doing so, profiting themselves.

Another 12 stocks became part of the frenzy, including AMC Entertainment, American Airlines Group, Blackberry, Bed, Bath & Beyond, and Trivago.

GameStop stocks were however one of the largest gainers of the Reddit-fueled price pump, increasing over 9,900% from $0.86 to over $86 between Apr. 2020 and Jan. 2021, according to Macrotrends.net.

Magazine: Blockchain games aren’t really decentralized… but that’s about to change

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Apple’s 30% tax rules will stay for now, crypto and NFTs may have to wait

A Supreme Court judge has rejected a request from Epic Games that would've immediately loosened Apple's App Store payment rules, to the potential benefit of crypto and NFT apps.

Crypto app developers hoping for a loosening of Apple's App Store rules will have to wait longer after a United States Supreme Court held off on granting a request to let apps direct users to payments outside of Apple’s ecosystem.

An Aug. 9 decision from Justice Elena Kagan declined to let a federal appeals court decision take immediate effect as Epic had asked — with no explanation for the decision.

In April, the Court of Appeals for the Ninth Circuit ruled Apple violated California’s competition laws by not allowing apps to direct users to non-Apple linked payment solutions.

The ruling meant that developers such as Epic Games would be able to funnel  users to alternative payment methods, giving them an option that circumvents Apple’s 30% tax on in-app payments.

The 30% Apple tax has also been a hurdle for crypto firms, including those that want to offer iOS users the ability to purchase non-fungible tokens.

At the moment, there exists no means to buy an NFT on an app listed on Apple’s App Store other than through its in-app payments system, which charges a 30% commission rate and only allows purchases using fiat.

Apple’s guidelines don’t allow apps to take crypto to unlock app functionality or make in-app purchases using crypto.

This has led to most crypto apps offering only limited functionality, such as being able to view balances and assets only. Crypto exchange apps are unaffected.

Related: Lawmakers probe Apple’s App Store policies on blockchain, NFTs

Justice Kagan’s rejection of Epic’s request means Apple will get at least a few more months of reprieve from the ruling as it plans a Supreme Court appeal to the decision.

The Ninth Circuit ruling will come into effect if the Supreme Court refuses Apple’s appeal, however.

In its argument to lift the appeals court hold Epic claimed it applied a “lax legal standard” in granting the stay which would injure Epic and “innumerable consumers and other app developers for a significant period of time.”

Apple hit back saying the stay has been in place for two years already and doesn’t apply to Epic anyway. Apple booted Epic’s Fortnite off the App Store in August 2020 for attempting to workaround Apple’s in-app payments system.

NFT Collector: On-chain music sounds off with latest raise, artistic duo Hackatao find their lane

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The Supreme Court could stop the SEC’s war on crypto

Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett are among a group on the Supreme Court who may not smile upon the SEC’s interpretation of the law.

When the leaders of the American Revolution signed the Declaration of Independence on July 4, 1776, they had no guarantee of victory. The battle for independence was underway, and their prospects were uncertain. Despite occasional victories, these audacious freedom fighters were grossly outnumbered and had difficulty retaining volunteer soldiers. Their commitment to the cause of freedom was their only fighting chance.

Cryptocurrency as an open-source software industry is in a similar predicament. The United States Securities and Exchange Commission and banking regulators are trying to dismantle this budding industry, brandishing lawsuits and an intimidating array of regulatory measures designed to make compliance impossible.

Crypto’s fighting chance is embedded within the very words and legal principles put forth by America’s founders in the Constitution. They designed the Constitution on the principle of the separation of powers inspired by the Enlightenment. Their vision was of a system with three separate but coequal branches of government, each acting as a safeguard against the potential abuse of power by the others.

Coinbase stands at the vanguard in the modern battlefield of cryptocurrency as it stares down a lawsuit brought by the SEC. In June, the company delivered a declaration in response to the lawsuit that leans on the “major questions doctrine.” This essential legal principle holds agencies like the SEC accountable when they circumvent Congress’ role in our constitutional structure and manipulate vague and antiquated statutes for their own ends.

Related: Elizabeth Warren wants the police at your door in 2024

In recent landmark cases that curbed executive overreach in both the Obama and Biden administrations, the Supreme Court has underscored the importance of the major questions doctrine. This doctrine underlines the crucial point that when agencies attempt to regulate questions of significant national or political importance, they must have explicit authorization from Congress.

This doctrine is not new nor untested. When the Food and Drug Administration (FDA) attempted to regulate cigarettes, justifying action by defining them under the FDA’s authority over drugs, the Supreme Court struck down the agency’s overreach. The court pointed out that nicotine, while technically a drug, did not fall under the palliative class of drugs Congress had intended when creating the FDA.

A similar verdict was reached regarding the Environmental Protection Agency’s (EPA) attempt to regulate carbon emissions. The EPA was prevented from broadening its mandate over power plant pollution to set a national policy on carbon emissions, which was beyond its remit and would usurp the role of the legislature.

The Supreme Court’s decision striking down Biden’s student loan forgiveness program is the most recent invocation of the major questions doctrine. Coinbase general counsel Paul Grewal astutely observed that one could substitute crypto for student loans in the court’s ruling and envision a similar outcome.

SEC Chairman Gary Gensler’s apologists argue that the securities laws from the 1930s have successfully adapted to the internet era, hence they can adapt to crypto as well. This argument would carry weight if the SEC made similar adaptations to crypto as they did to the internet.

Over the years, the SEC has proven its capacity to evolve, allowing prospectus delivery over the internet and sanctioning executive communications through social media. But when it comes to crypto, the SEC stubbornly insists that developers must comply with laws that, without nuanced adaptation, are impossible to adhere to.

This grudging approach of “just come in and register” while blatantly ignoring the numerous questions raised in Coinbase’s 2022 request for rulemaking is exactly why the major questions doctrine — as interpreted by Justices Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett — is so relevant to the SEC’s approach to crypto regulation. The doctrine acts as a constitutional compass, guiding the direction of authority, and restraining overreach by various agencies.

Related: Gary Gensler is hurting the little guys for Wall Street

The framers of the Constitution left us an arsenal of tools to wage a revolution for freedom within the design of the U.S. Constitution. Legal scholars and constitutionalists, including Gorsuch, are reviving the founders’ vision of a delicate balance of power among the three branches with the major questions doctrine.

Crypto defendants, such as Coinbase, Ripple and Binance, are pioneering a revolution of their own. They are at the forefront of a movement aiming to decentralize power, shifting it from centralized institutions to the hands of individuals. In their struggle, they are armed with the very same tools our founders used to shape this nation.

There’s a striking parallel between our founders’ fight for political freedom and the current struggle for financial freedom in the digital realm. The underpinnings of both these movements are deeply rooted in a quest for autonomy and liberty.

J.W. Verret is an associate professor at George Mason University’s Antonin Scalia Law School. He is a practicing crypto forensic accountant and also practices securities law at Lawrence Law LLC. He is a member of the Financial Accounting Standards Board’s Advisory Council and a former member of the SEC Investor Advisory Committee. He also leads the Crypto Freedom Lab, a think tank fighting for policy change to preserve freedom and privacy for crypto developers and users.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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