In a somewhat surprising turn of events, co-founder of Three Arrows Capital (3AC), Kyle Davies, has managed to avoid contempt charges in the United States Bankruptcy Court because he holds Singaporean citizenship. The revelation came after lawyers provided evidence that Davies renounced his US citizenship in December 2020, leaving the court unable to establish jurisdiction over him.
The case began as a result of an online subpoena issued to Davies, who failed to respond. Due to his previous US citizenship, the court assumed they could exercise jurisdiction over him. However, this has turned out to be untrue; with Davies now a citizen of Singapore, the court lacks authority. This potentially throws a monkey wrench in the recovery efforts of the liquidators of 3AC, who seek a substantial $1.3 billion from Davies and his co-founder.
Despite the unexpected complication, Judge Martin Glenn hinted that there might be another avenue open for pursuers through Singaporean courts. Although this shifts the legal proceedings to foreign soil, it could potentially keep the recovery process alive, albeit via a different jurisdiction.
Meanwhile, the fintech giant PayPal has revealed its new dollar-pegged stablecoin PYUSD, bringing the conversation back to the prosaic realm of regulation. The launch, as expected, has been courting attention from the crypto-community. Despite the undeniable potential of integrating PayPal‘s colossal user base of 430 million with Ethereum’s infrastructure, there is a looming shadow of doubt over crypto centralization. However, this internal community scepticism may not be the largest hurdle for PayPal’s stablecoin.
The uncertain US regulatory landscape could pose significant challenges. PayPal has reportedly been lobbying lawmakers and regulators for clarity before releasing PYUSD, but an inclusive regulatory framework remains absent. Notwithstanding this, PayPal’s launch signals a sense of optimism for stablecoin oversight in the United States. The intricacies of the impact of PYUSD on the industry’s evolution, however, are still to be seen.
Regulation, or the lack thereof, continues to shape the narrative within the cryptosphere. From individual cases like that of Kyle Davies, to systemic issues like the implementation of new stablecoins, it’s increasingly apparent that the future of cryptocurrencies will be largely determined in the regulatory battleground. Yet, with all its ensuing complexities and uncertainties, this also brings a potential for evolution and maturing of the market.
Source: Cointelegraph
