There are hopes that the United States could see a new crypto resurgence after several rulings this year have seen court judges “rein in the SEC,” according to a digital asset lawyer from K&L Gates.
On Aug. 31, Jeremy McLaughlin, a partner at the global law firm, noted that multiple U.S. court cases have stomped on arguments from Securities and Exchange Commission chair Gary Gensler — who has said that almost all digital assets are securities.
McLaughlin was speaking on a panel at Intersekt23 in Melbourne alongside payment services firm Novatti chief Effie Dimitropoulos and Invest Hong Kong fintech head King Leung.
He said early crypto regulation happened at the state level and was “pretty clear what you needed to do” but after the SEC and the Commodity Futures Trading Commission got involved “a lot of the market started to close up.”
“People delisted tokens, some companies pulled out of the U.S. because they saw how aggressive the SEC was being, and continues to be,” McLaughlin said.
“Now that the courts are starting to rein in the SEC a bit, I think there’s some hope that the industry is kind of igniting again in the U.S.”
In recent months the SEC has been handed a loss in a suit it brought against a crypto firm and also lost a suit a crypto firm brought against it.
On Aug. 29 a U.S. District Court judge ruled against the SEC over Grayscale Investments being denied its application to convert its flagship Bitcoin (BTC) fund into an exchange-traded fund.
In July, the SEC also took a partial loss in its case against Ripple Labs over XRP (XRP) sales when a judge ruled it wasn’t a security when sold to retail traders.
“To be a lawyer in the space, it’s quite difficult to advise clients,” McLaughlin remarked. He added he it was also frustrating that he couldn’t give clients clear answers.
He does see hope, however, that crypto regulations are emerging from the “pit of chaos.”
“Finally, there are cases that are being filed and the decisions have been going strongly in the favor of the digital asset industry,” McLaughlin added.
Aussies ‘lagging’ while others gain
In another part of the discussion, the panelists were asked about their thoughts on the state of Australia’s crypto legislation, compared to others. Novatti’s Dimitropoulos had one word: “Lagging.”
Dimitropoulos pointed to new regulatory frameworks in Hong Kong and the European Union as proof Australia’s crypto regulations were falling behind.
“It’s very clear to say that Australia is lagging. What that means […] Is how that affects on-the-ground businesses that are operating with digital assets.”
She highlighted the overhead needed for local crypto firms to get legal advice “that could be defunct in three minutes’ time.”
“We hear the Treasurer is going to come out with regulation, [the Australian Securities and Investments Commisson] is going to do something, Senator Bragg’s bill in play,” she said.
“There are so many pieces that are still in play with no clear resolution as to when it’s going to happen. So that supports my word: ‘Lagging.’”
Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.