The ongoing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple, a blockchain company, has been widely publicized. Amidst this backdrop, a commissioner within the SEC has spoken out against the agency's tactics in the cryptocurrency sector, characterizing them as a territorial struggle.

Hester Peirce, who has gained recognition for her vocal criticism of the regulator, has accused the SEC of engaging in "regulation by ambiguity" and "jurisdictional maximalization." This includes the launch of cases like the one against Ripple, which may be aimed at expanding the SEC's authority. These allegations were reported by Wired on April 26.

Enforcing instead of guiding

As per the report, Peirce commented that "one way to plant a flag is to bring enforcement action. It says: This is our space." However, she also highlighted a major issue with this approach, namely that the SEC has not provided sufficient guidance for cryptocurrency firms to ensure compliance. This lack of guidance leaves these firms in a state of uncertainty and confusion.

“We haven’t done our job as a regulator. We have not provided a road to compliance. (…) [Businesses and consumers] have to be able to know whether they’re dealing with a security or not because when they don’t know, they can’t move forward—it paralyzes them.”

Peirce further contends that the SEC's actions are detrimental to the United States' ambitions of becoming a hub for technological innovation in the financial sector. By driving companies away with unclear and inconsistent regulation, the country is missing out on potential opportunities for experimentation and growth.

"It's disheartening because it reveals the inability of regulators to adapt to new technologies and asset classes," Peirce lamented. "We are demonstrating an inability to provide any room for experimentation."

Legal developments

Meanwhile, John E. Deaton, a legal expert who is an amicus curiae for Ripple, revealed some details of his Amicus Brief. In it, he challenged the SEC to provide evidence of any other situation that is comparable to what the agency is attempting to establish in the ongoing Ripple case.

John E Deaton@JohnEDeaton1

Deaton emphasized that the nature of an asset does not change simply because it is offered and sold as an investment contract or security. For example, oranges remain oranges, and XRP remains digital code.

Meanwhile, the XRP community is eagerly awaiting news regarding a Zoom hearing on class certification for a class-action lawsuit filed against Ripple in 2020 in a California court. In this lawsuit, Ripple is accused of selling the XRP token as an unregistered security, as stated by defense attorney James K. Filan.

As of April 27, XRP is trading at a price of $0.46, with a 2.22% decrease on the day following a sharp drop from $0.48 to $0.44. However, the cryptocurrency seems to be recovering and attempting to reverse its losses of 6.05% in the last week and 4.01% over the past month, according to the latest data.

#xrp #SEC #RIPPLE #crypto2023 #lawsuit

Source: finbold

image Source: Photo by Traxer on Unsplash

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Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

In a legal saga unfolding in London's High Court, Tether, the stablecoin giant, finds itself entangled in a legal battle stemming from a substantial deposit of over $1 billion. The funds were reportedly placed with a subsidiary of Britannia Financial, a move that has become a focal point in an ongoing dispute between Britannia and Arbitral International, a British Virgin Islands-registered entity. The intricacies of this legal clash shed light on the complexities of financial transactions and their potential legal ramifications.

The Legal Battlefield: Britannia vs. Arbitral International:
The legal dispute centers on Britannia Financial's acquisition of a Bahamas brokerage from Arbitral International in June 2021. Arbitral alleges that Britannia failed to fulfill the complete payment for the brokerage, leading to the initiation of a legal battle in London's High Court. Arbitral claims entitlement to additional funds generated by the business post-sale, based on a pre-existing agreement between the two parties.
However, Britannia contends that the $1 billion-plus deposit from Tether is unrelated to the Bahamas brokerage transaction. The financial services firm argues that the funds were deposited with its subsidiary, Britannia Global Markets, and are distinct from the legal matters with Arbitral International. The resolution of this dispute hinges on the intricate details of financial transactions and the interpretation of contractual agreements between the involved parties.
Tether's Role in the Legal Drama:
Tether, as the issuer of the world's largest stablecoin, holds significant sway in the digital currency landscape. With $86.4 billion in assets, primarily secured in U.S. Treasuries and secured loans, Tether's financial moves draw attention from both the crypto community and traditional financial sectors. The company's decision to deposit over $1 billion with Britannia Financial adds a layer of complexity to an already contentious legal battle.

Implications for Stablecoins and the Crypto Market:
As stablecoins like Tether play an increasingly crucial role in providing stability to crypto users, their interactions with traditional financial institutions and legal entanglements become pivotal. The outcome of this legal dispute may set a precedent for how stablecoin issuers navigate legal challenges and financial transactions, impacting the broader crypto market's perception and stability.

Tether's billion-dollar deposits have inadvertently thrust the stablecoin issuer into a legal maelstrom. The resolution of the dispute between Britannia Financial and Arbitral International will not only determine the financial fate of the involved parties but may also shape the legal landscape for stablecoins and their interactions with traditional financial entities. As the legal battle unfolds, the crypto community watches closely, mindful of the potential ramifications for stability and trust in the broader digital currency ecosystem.

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#Tether #lawsuit

#XRP news :

The long-running #SEC v. Ripple lawsuit has been delayed yet again, with attorney James Filan suggesting that a summary judgment could be reached as early as September 2023.

The #lawsuit , which began in December 2020, alleges that Ripple and its executives violated securities laws by selling XRP, the native token of the XRP Ledger, as an unregistered security.

Filan, who is representing Ripple in the case, tweeted on June 28 that he believes the parties will be able to reach a summary judgment by September 26, 2023. This is later than the previous estimate of August 26, 2023.

A summary judgment is a ruling by the court that one party is entitled to judgment as a matter of law. If the court grants summary judgment, the case will be over and there will be no need for a trial.

The delay in the SEC v. Ripple lawsuit has been frustrating for many in the crypto industry, who are eager to see a resolution. However, it is important to remember that the court is taking its time to ensure that a fair and just decision is reached.

#crypto2023 #Binance

$BTC $USDC $ETH

Jump Trading accused of buying over 62M UST tokens to inflate its price.

Jump Trading Group’s crypto division has been sued for conspiring with Terraform Labs to manipulate TerraUSD’s (UST) price following the stablecoin’s unprecedented collapse. The $1.3 billion class-action lawsuit alleges that Jump bought 62 million UST tokens to propel its price back up.

Jump Trading Allegedly Bought UST to Recover its Dollar Peg

Jump Trading, a US-based firm focused on algorithmic and high-frequency trading strategies, is facing a $1.3 billion class-action lawsuit over allegations that it had manipulated the price of the collapsed UST token. The lawsuit was filed on behalf of affected investors by Taewoo Kim, a New Jersey resident who claims that Jump Trading was also an early partner of Terraform Labs, the blockchain project behind UST.

In the lawsuit, Kim alleges that shortly after the UST collapse in May 2021, Jump Trading and Terraform Lab’s then-CEO Do Kwon conspired to manipulate the prices of UST and aUST stablecoins artificially. To achieve this, Jump bought UST tokens, temporarily restoring UST’s price to the $1 peg, which previously dropped to as low as 12 cents.

Specifically, the lawsuit states that from May 23 to May 27, 2021, Jump Trading acquired more than 62 million tokens. The purchases were made across several crypto exchanges to hide its manipulative actions better, Kim says in the document.

In addition, Kwon’s Terraform Labs then agreed to transfer 61.4 million LUNA tokens to Jump at a fixed price of $0.40 per coin under the terms of an agreement signed in July 2021. The deal was supposed to remain in effect for the following four years without regard to LUNA’s actual market price.

source: tokenist

image source: ai

#terra #terraluna #lawsfordigitalassets #lawsuit #crypto

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.