Senator Lummis shared a letter to the US Division of Justice (DOJ), saying,
“In terms of illicit finance, crypto is just not the enemy – unhealthy actors are. I despatched a letter to the DOJ asking to complete its investigation and think about prison expenses towards Binance and Tether after stories they served as intermediaries for Hamas and engaged in illicit actions.”
The letter from Senator Cynthia Lummis and Consultant French Hill didn’t take a tough stand towards crypto, stating,
“[…] We should be cautious to not paint all crypto intermediaries as suspect when a small handful of unhealthy actors use them for nefarious functions.”
Senator Lummis and Consultant Hill additionally urged the DOJ to take motion towards those that have interaction in illicit actions by means of cryptocurrencies. The letter referenced the WSJ Report on Hamas elevating funds by means of crypto and subsequent stories highlighting the inaccuracy of the WSJ article.
The elevated scrutiny coincides with a pivotal interval for the US digital asset area. SEC instances towards Binance, Coinbase (COIN), and Ripple stay ongoing. The SEC can also be reviewing BTC-spot ETF functions, the approvals of which might open the floodgates for institutional traders to carry crypto.
There have been no updates from the continuing SEC v Ripple case to affect market sentiment. Nonetheless, SEC v Coinbase case-related information drew investor curiosity.
SEC v Coinbase: The Case the SEC Can’t Afford to Lose
On Tuesday, Coinbase filed its reply temporary to the SEC’s opposition to the Coinbase motion to dismiss (MTD). Coinbase Chief Authorized Officer Paul Grewal supplied a easy argument to sway a Courtroom resolution in Coinbase’s favor. Notably, Grewal said,
“By arguing that any buy in which the client hopes for a rise in worth constitutes an funding contract – and subsequently a security- the SEC is trying a radical growth of its personal authority. Solely Congress can do this as the most important questions doctrine makes clear.”
On Thursday, Grewal shared the newest SEC v Coinbase case-related updates, saying,
“Oral argument on our movement for judgment has been set: January 17. We admire the Courtroom’s swift consideration to this matter and sit up for answering the Courtroom’s questions.”
Based on the Courtroom order,
“The Courtroom is in receipt of Defendants’ request for oral argument regarding Defendants’ Movement for Judgment on the Pleadings. The request is GRANTED.”
The SEC and Coinbase should submit a joint submitting by November 17, 2023, detailing the proposed schedule for the listening to. Amici Curiae also can communicate on the listening to. In August, Senator Cynthia Lummis filed an Amicus Curiae temporary supporting the Coinbase MTD.
Notably, the Courtroom date for oral argument will ease strain on the SEC in ongoing discussions with Ripple. There’s hypothesis that the SEC desires to settle the case towards Ripple earlier than a ruling on the Coinbase MTD.
Amicus Curiae legal professional John E. Deaton thinks the SEC will settle the case towards Ripple if the Courtroom grants the Coinbase MTD.