• The Bipartisan Securities Clarity Act has been re-introduced by majority whip Tom Emmer and representative Darren Soto, with the aim of clarifying the distinction between commodities and securities.
• Coinbase is currently engaged in a legal battle with the SEC, challenging their lack of regulatory clarity for cryptocurrency assets.
• Ripple is locked in its own legal dispute with the SEC, hoping to leverage ‘Hinman docs’ to understand why XRP is being categorized as a security.
Bipartisan Securities Clarity Act Re-Introduced
The Bipartisan Securities Clarity Act has been re-introduced by Majority Whip Tom Emmer and Representative Darren Soto to demarcate a clear line between commodities and securities, thereby refining regulatory legislation concerning digital assets. The act aims to separate an “investment contract asset” from the securities offering it was initially part of, rendering the definition “technology neutral.”
SEC vs Coinbase Legal Battle
Coinbase is currently engaged in a legal battle with the SEC due to their lack of regulatory clarity for cryptocurrency assets. Earlier this year, the SEC served Coinbase with a Wells notice and Coinbase responded by legally challenging them. This week, the SEC addressed Coinbase’s appeal for significant regulatory changes, acknowledging that they may initiate rulemaking proceedings to address such matters.
SEC vs Ripple Dispute
Ripple is locked in its own legal dispute with the SEC over XRP being categorized as a security. A court recently ordered the SEC to unseal documents related to William Hinman’s speech four years ago which could potentially sway the case in Ripple’s favor and help them understand why XRP is now being classified as a security when ETH wasn’t at that time.
Impact on Crypto Assets & Broader Securities Market
The ongoing court proceedings could potentially have significant impact on crypto assets and broader securities market if they are successful in achieving greater regulatory clarity from authorities like the SEC or if they win their respective cases against them i.e., if Ripple succeeds in proving that XRP should not be classified as a security or if Coinbase wins its challenge against Wells notice issued by SEC etc..
Conclusion
Ultimately these disputes are proof of increasing demand for greater regulation regarding crypto assets from both public corporations like Coinbase & Ripple as well as legislators like Emmer & Soto who have re-introduced new legislation like Securities Clarity Act which could provide some much needed clarity when it comes to classifying cryptocurrencies either as commodities or securities under law.