The US federal court is in the center of attention in today’s crypto news for ruling a case between the Securities and Exchange Commission and the crypto ICO project named Blockvest in favor of the project.
The chief legal officer at Blockchain made clear:
“The SEC brought an enforcement action against a company called Blockvest, alleging that Blockvest’s ICO was a securities offering. SEC asked the court for a preliminary injunction (an order freezing Blockvest’s assets, among other things) so it called a hearing on the evidence.”
Although this decision was unexpected, this cannot be seen as a great loss for the SEC, as Jay Clayton, the SEC chairman noted that most of the ICOs that investors are willing to put their money in as considered as securities under the existing US laws. However, this is a precedent for the crypto market and means that future ICO could face with the SEC in court and eventually win a case.
The SEC has now become more wary when filing a lawsuit against a certain ICO project since now the court requires a clear description of the asset’s nature. The blockchain executive added that the court simply took it too far when it rejected an argument from the SEC.
This decision of the federal court has just created a more complex environment for investors but also for the commission when challenging a token issuer.
Russian State Duma To Review Crypto Regulation: Preparing For Oil-Backed Crypto
“Perhaps the oil-backed cryptocurrency will be the pioneering project that will create a reliable structure for the cryptographic market as a whole," he concluded.
Thailand Legislative Assembly Permits Issuing Of Tokenized Securities
Texas Regulator Reaches Agreement With Four Crypto Companies It Previously Accused
“The orders cited a total of 60 individuals and entities. None of the individuals or firms were registered to sell securities in Texas.”
US Regulators Decision On BTC ETF Will Set The Mood For The Crypto Market: KRX
“The US has been the front-runner on the cryptocurrency market and related derivatives, and there are strong voices supporting the launch of Bitcoin ETFs within the market — which is why we are observing the progress and response of the US SEC’s decision on Bitcoin ETFs.”He added that the KRX is considering the provision of a solid Bitcoin index as well which will be required for the launch of such ETFs. South Korea’s blockchain market has seen the launch of blockchain ETFs by investment banks because of the incredibly lower level of scrutiny they get from the national watchdog. A professor at Korea University’s Graduate School of Information Security Lee Kyang-ho argued that the health of the blockchain sector in the country could eventually create a path for crypto ETF integration by saying:
“With the government expanding its investment in research and development of blockchain technology, the projects are expected to minimize or eliminate the risk of integrating ETF transactions in the cryptocurrency market.”
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