Law Decoded, June 7–13: Lummis-Gillibrand bill is finally here
One can hardly name a document more long-hoped-for as the crypto bill, co-sponsored by United States Senators Cynthia Lummis of Wyoming and Kirsten Gillibrand of New York, was for the crypto community. And, it’s finally here. Last week, Lummis and Gillibrand introduced a 69-page bill in the U.S. Senate. What’s inside? The projects of study on the environmental impact of digital assets and advisory committee on innovation, a tax structure, a mandate for analysis of the use of digital assets in retirement savings and much more.
Should it become law, the bill would undoubtedly implement major changes to the current regulatory landscape. Kirsten Gillibrand and Cynthia Lummis have confirmed that Bitcoin (BTC) and Ether (ETH) will be classified as commodities and regulated by the Commodity Futures Trading Commission (CFTC). At the same time, bill authors consider most altcoins securities subject to U.S. Securities and Exchange Commission (SEC) regulations. “It will be a struggle to decipher what exactly is in the SEC bucket, but it could be the exception that swallows the rule,” a worried expert told Cointelegraph.
Legal troubles mount for Terraform Labs
Terraform Labs, the parent company behind the collapsed Terra ecosystem, continues its struggle with enforcement agencies and courts in both hemispheres. The Seoul Metropolitan Police Agency received an intelligence tip informing them of possible embezzlement of BTC by one of the firm’s employees, though not Do Kwon himself. But Kwon is still in enough trouble, as The United States Court of Appeals rejected his dispute of a subpoena by the SEC, ruling that it was served correctly.
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Bad week for Binance
Major crypto exchange Binance suffered some heavy blows last week. The SEC investigated whether Binance Holdings broke securities rules when it launched its native token BNB in an initial coin offering (ICO) five years ago. Then, Reuters alleged that Binance processed at least $2.35 billion of transactions from hacks, investment frauds and narcotics sales between 2017 and 2021. In its written statement, the company snubbed the journalists’ allegations as disinformation attempts by certain interested parties to “mislead the general public.”
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A letter from human rights activists
Writing letters is cool once again. A week after the open letter by tech scientists against the lobbying effort of the industry comes the new one, this time from human rights activists. Campaigners from 20 countries have submitted an open letter to the U.S. Congress in support of a “responsible crypto policy” and praising Bitcoin and stablecoins as essential tools aiding democracy and freedom for tens of millions. The human rights coalition lashed out at the authors of last week’s anti-crypto letter who come from countries with “stable currencies, free speech, and strong property rights” and that they most likely haven’t experienced hyperinflation or “the cold grip of dictatorship.”
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