• The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance Holdings and CEO Changpeng Zhao (CZ).
• Ripple’s Senior Staff Software Engineer Neil Hartner warned that the CFTC’s statement regarding Bitcoin, Ethereum and Litecoin being commodities may not have implications for the SEC’s case against Ripple.
• A transcript of the November 21, 2022 status hearing between LBRY and the SEC was recently made public, which revealed how SEC has rejected every offer of remediation from LBRY.
Lawsuit Filed Against Binance
The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance Holdings and CEO Changpeng Zhao (CZ). The CFTC writes in its complaint that Bitcoin, Ethereum and Litecoin are all commodities.
Implications For Ripple Case
Ripple’s Senior Staff Software Engineer Neil Hartner warned that the CFTC’s statement regarding Bitcoin, Ethereum and Litecoin being commodities may not have implications for the SEC’s case against Ripple. According to Hartner, a commodity may be subject to security laws, but no security can be subject to commodity laws – leading to double regulation and confusion for businesses. Coinbase chief legal officer Paul Grewal echoed similar sentiments on Twitter as well.
LBRY Case Reveals Pathway For Crypto Industry
A transcript of the November 21, 2022 status hearing between LBRY and the SEC was recently made public, which revealed how SEC has rejected every offer of remediation from LBRY despite refusing to say what rules were applicable for five years before they sued them. This highlights how ambiguity is used as a weapon by US regulators against crypto businesses.
Judge Paul Barba’s Ruling
Judge Paul Barba ruled in favor of LBRY after acknowledging that if given more time they might have been able to develop something compliant with securities regulations or some other form of appropriate relief. He also highlighted that while an enterprise should know what rules it needs to abide by, there must also be reasonable notice given when new rules come into effect.
Conclusion
To conclude this article it can be said that ambiguity is used as a weapon by US regulators against crypto businesses as illustrated through multiple cases including those involving Binance Holdings, Ripple Labs and LBRY Inc.. As highlighted by Judge Paul Barba’s ruling in favor of LBRY Inc., enterprises should know what rules need to be abided by but reasonable notice must also be given beforehand when new rules come into effect