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Ripple: Good or bad news? Chamber of Digital Commerce to join lawsuit

  • Now, the Chamber of Digital Commerce intends to file its brief by September 26.
  • Notably, an “amicus curiae” is usually instituted by an individual or group that is not a party to a case.

A Southern District Court in New York has approved a request by the United States crypto advocacy group, the Chamber of Digital Commerce (CDC), to function as an “amicus curiae” in the ongoing legal tussle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs. According to reports, Judge Analisa Torres gave the approval in a Wednesday ruling. Occasioned by the approval, the CDC is now eligible to assist the court with the necessary information, expertise, or insight on the case.

Notably, an “amicus curiae” is usually instituted by an individual or group that is not a party to a case. With it, the individual or group solicits the approval of the Court to submit a brief intending to influence the judgments. Reportedly, the CDC has a huge interest in the ongoing legal tussle between the US regulator and Ripple.

CDC to file its brief by September 26

Now, the CDC intends to file its brief by September 26. According to the group, it won’t take a view in its brief on whether Ripple’s XRP sales run as securities. However, it promised to avail relevant applicable legal precedents for the initial offering of virtual assets.

More so, it plans to “make the court aware that no federal law or regulation governs the legal characterization of a digital asset recorded on a blockchain.”

Notably, the CDC maintained that the final judgment by the Court tends to pose heavy implications on the digital asset sphere. According to the group, it will help to illustrate whether the law obtainable in securities transactions differs from the one applicable to secondary transactions.

A pro-XRP activist and lawyer, identified on Twitter as @Belisarius2020 talked more about the development. According to him, the CDC intends to convince the Court that digital assets and transactions run as two separate entities. More so, the lawyer foresees a positive result for the crypto sphere even if the Court recognizes Ripple sales as investment contracts. He sees the involvement of the group in the brawl as neither good nor bad for Ripple or XRP. According to him, such a move makes sense and aids the continued functioning of the crypto industry.

Background to the legal tussle between Ripple and SEC

Recall that the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) started in 2020. Then, the US regulator accused Ripple of selling investors $1.3 billion worth of unlicensed security. Reportedly, it banked on the accusation to file a lawsuit against Ripple and its executives, believed to be shareholders. Notably, Ripple, in its reaction challenged the powers of the regulator to trail its operations. Furthermore, it argued that XRP is not a security, describing SEC’s move as unlawful.

Recently, the two-year-long case took another dimension after the US court directed the release of the “Hinman speech” by the SEC. The court slammed the SEC for covering up a speech document capable of facilitating the defense of Ripple. With no end in sight yet, the final resolution of the court tends to legally define the status of XRP. Now, a ruling in favor of the SEC will encourage the agency to unleash a similar showdown on other similar projects.

Der Beitrag Ripple: Good or bad news? Chamber of Digital Commerce to join lawsuit erschien zuerst auf Crypto News Flash.

California Governor Rejected Regulatory Bill Passed By Assembly Lawmakers

On August 30, legislators of the California State Assembly passed a bill on Digital Financial Asset Law. The bill, dubbed AB 2269, reached to Gavin Newsom, Governor of California, for final approval without a single objection by assembly members. The proposed notion required crypto companies to achieve a regulatory license from the Department of Financial::Listen

On August 30, legislators of the California State Assembly passed a bill on Digital Financial Asset Law. The bill, dubbed AB 2269, reached to Gavin Newsom, Governor of California, for final approval without a single objection by assembly members.

The proposed notion required crypto companies to achieve a regulatory license from the Department of Financial Protection and Innovation in order to operate in the regime and suggested applying hefty penalties for crypto platforms that commit prohibited activities.

Interestingly, Gavin Newsom returned the bill without approving it and went on to say that the underscored legislation may prove “ premature and costly.” Newsom instead referred to designing a “more flexible approach” to meet the ever-changing crypto ecosystem needs. 

Related Reading: Bitcoin Down Under: Australia Bags 4th Spot In Global Crypto Adoption – Survey

Admiring that governments have been struggling to protect users and drive a transparent regulatory framework for the crypto ecosystem, Governor urged the bill in question does not suit the crypto market environment completely. Newsom added in a statement published on Thursday;

Over the last several months, my Administration has conducted extensive research and outreach to gather input on approaches that balance the benefits and risk to consumers, harmonize with federal rules, and incorporate California values such as equity, inclusivity, and environmental protection. It is premature to lock a licensing structure in statute without considering both this work and forthcoming federal actions.

Moreover, he expressed his worries about the need for millions of dollars in loans from the general fund needed in the starting years to establish a regulatory licensing framework. “Such a significant commitment of general fund resources should be considered,” he said

Bitcoin’s price is currently trading below $20,000. | Source: BTCUSD price chart from TradingView.com
Newsom Awaits Comprehensive Regulatory Framework Of Federal Agencies

The governor pointed toward the comprehensive regulatory approach currently being considered by several federal authorities following Biden’s order. Once the federal authorities finalize the analysis and introduce complete rules for the evolving crypto sector, he will then collaborate with California officials to implement a more relative and suitable regulatory framework, per the latest note. 

After six months of research conducted by federal authorities, the White House’s official website published a fact sheet of six core principles on September 16. The facts provide directions to be considered to design complete regulations in the U.S. Alongside the focus on preventing illicit financing, the report also took innovative development growth into account, among other concerns. 

Similarly, the Office of Science and Technology Policy (OSTP) submitted an analysis report to the White House covering the potential 18 design frameworks for United States’ CBDC projects. The experts following the research highlight difficulties and complexity in the practical implementation of building a permissionless system supervised by the central bank. 

Related Reading: Crypto Exchange Binance Unveils New Fee Burn Mechanism For LUNC

The report dubbed “TECHNICAL DESIGN CHOICES FOR A U.S. CENTRAL BANK DIGITAL CURRENCY SYSTEM” reads:

It is possible that the technology underpinning a permissionless approach will improve significantly over time, which might make it more suitable to be used in a CBDC system.

Featured image from Pixabay and chart from tradingView.com

Ripple: Good or bad news? Chamber of Digital Commerce to join lawsuit

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