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3 cryptocurrency lawsuits to watch out for this week
Courtrooms are abuzz with legal battles involving several high-profile cases in the courts this week. Let’s take a look at the key developments happening/that will happen this week –
TODAY: Custodial Bank v. Federal Reserve: Top legal talent joins case
In a few hours we will contact the legal advisor of the Custodian Bank present in court to appeal against the Federal Reserve. The two high-profile lawyers who will file Custodia Bank’s appeal, Ian Gershengorn, acting attorney general under President Obama, and Michelle Kallen, former attorney general of Virginia, are expected to appear today.
Since both attorneys are highly recognized for their legal accomplishments in Supreme Court cases, Custodia Bank’s case revolving around its application for a Federal Reserve master account will undoubtedly have a broader impact on the regulator’s position of the US market on the cryptocurrency market.
MAY 10: SEC vs. Coinbase: awaiting answers in two legal battles
May 10th, Friday, is a crucial date for the Coinbase vs. SEC case as the Commission has been given a deadline to submit its response on both two separate cases against Coinbase on this date.
Response to the cross-appeal
The primary reason behind Coinbase’s request for interlocutory appeal is to address a “control issue” in the case against the SEC. The question is: does an investment contract require “something contractual”? Coinbase argued that a transaction should not be considered an investment contract if it has no post-sale obligations. If the court grants the interlocutory appeal, it could have significant implications for the SEC’s jurisdiction over crypto transactions.
Response to the SEC’s refusal to regulate cryptocurrencies
At the same time, Coinbase is also challenging the SEC’s refusal to create clear regulations for the cryptocurrency industry. In exchange, the SEC will have a May 10 deadline to file its response brief to clarify its position on the matter.
BREAKING: Robinhood receives Wells warning from SEC
The digital assets arm of the popular stock trading app, Robinhood Crypto, just received a Wells Notice from the SEC, making headlines an hour ago! The SEC is likely to take enforcement action. The Wells notice received by Robinhood contains information related to investigative subpoenas the company has previously received.
Dan Gallagher, Robinhood’s head of legal, compliance and corporate affairs, said: “We firmly believe that the assets listed on our platform are not securities.” The case against Robinhood comes on the heels of similar SEC actions against other cryptocurrency companies, including Coinbase and Kraken.
WHAT’S NEXT?
It’s only Monday and we have 3 cases knocking on crypto’s doors this week. Stay tuned with us to find out what happens in each case, as well as any new cases that may arise unexpectedly!
Also check: Robinhood Crypto Faces Potential SEC Enforcement Action, Stand Firm