The United States (U.S.) may be on the verge of an exciting crypto industry renaissance this year amid a growing backlash that has led to what some describe as “restriction of the SEC by the courts.”
This belief is reflected in the statements of the leading digital asset attorney at K&L Gates.
Keeping the SEC in check
On August 31, Jeremy McLaughlin, a partner at an international law firm, underlined that several legal cases in the United States are based on the arguments of Gary Gensler, chairman of the Securities and Exchange Commission. Assets are classified as securities. should be considered.
McLaughlin shared his insights during a panel discussion at ‘Intersekt23’ in Melbourne, where he was joined by Effie Dimitropoulos, head of FinTech at payment services firm Novati and Invest Hong Kong’s King Leung.
In the early days of state-level crypto regulation, “it was very clear what steps needed to be taken,” he noted. However, once the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) got involved, a significant portion of the market began to shrink. McLaughlin said:
People got rid of tokens and some companies pulled out of the US because of how aggressive the SEC was and still is. Now that the courts are starting to rein in the SEC a little bit, I think there is hope that the industry will pick up a little bit again in the US.
The SEC and its misdeeds
In recent months, the Securities and Exchange Commission (SEC) has faced a backlash in legal disputes, losing both a lawsuit filed against one crypto company and a lawsuit filed by another crypto company.
On August 29, a U.S. District Court judge ruled against the SEC in a case that blocked Grayscale Investments from converting its leading bitcoin fund into an exchange-traded fund.
In July, the SEC suffered a partial loss in a case against Ripple Labs over the sale of XRP, after a judge ruled that sales to retailers were not considered a security.
“As a lawyer in this field, it’s very difficult to advise clients,” noted McLaughlin. He said it’s frustrating that he can’t always give clear answers to his clients. However, he sees hope that crypto regulation will emerge from the “pit of chaos.”
A look at the current state of Australia’s crypto legislation
In another part of the conversation, panelists were asked about their perspective on the current state of crypto legislation in Australia compared to other jurisdictions. Effie Dimitropoulos, who represents Novati, used one word to describe it: “Lagging.”
Dimitropoulos pointed to the recent development of regulatory frameworks in Hong Kong and the European Union as evidence that Australian crypto regulation is lagging behind.
It is very clear that Australia is lagging behind. This means how it affects businesses that work with digital assets.
He highlighted the overhead required for local crypto companies to seek legal advice, “which can be raised in 3 minutes.”
“We hear that the Treasurer is bringing regulations, [de Australische Securities and Investments Commission] Something is going to be done, and Senator Bragg’s bill is in play,” he said at the end of the article.
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