U.S. presidential candidate Vivek Ramaswamy praised Grayscale’s victory over the federal securities regulator, saying it would pave the way for Bitcoin and blockchain innovation. Ramaswamy asserted that this victory could prevent these innovations from moving overseas, citing “shadow” government practices and the potentially unlawful behaviours of certain “three-letter government agencies” as significant obstacles. The pro-Bitcoin Republican proposes rescinding any failed federal regulations identified by the Supreme Court’s test in the West Virgina vs. EPA case, potentially restricting the SEC’s power over the cryptocurrency industry.
However, this promising scenario is not without its complications. The applicability of the Supreme Court’s major questions doctrine test to the crypto industry is currently undergoing legal scrutiny. Although Coinbase has received support in its quest to apply this doctrine to cryptocurrencies, a recent court hearing regarding the Terraform Labs case has determined that the doctrine doesn’t apply to crypto tokens as their economic implications are not significant enough.
Ramaswamy is just one of a handful of contenders in the race for U.S. presidency who has outwardly expressed support for the cryptocurrency industry. Such advocacy has garnered praise from big names like Elon Musk, who described Ramaswamy as a “promising candidate”.
Meanwhile, U.S. District Court Judge, Katherine Polk Failla, in the dismissal order involving a case against Uniswap, classified ETH and Bitcoin as “crypto commodities”. This comes at a time of uncertainty, with the SEC and CFTC in a battle for jurisdiction over cryptocurrencies, as both agencies have claimed differing regulations for these digital currencies.
As these events circulate, it’s abundantly clear that a comprehensive cryptocurrency regulation is urgently needed. Numerous bills that aim to provide clarity for these regulations have been proposed in Congress, indicating that decisive changes could be on the horizon. Yet, until concrete changes are made, the cryptocurrency community and those interested in the future of this industry will have to patiently watch these developments unfold.
To summarise, while recent court decisions may have paved the way for innovation in the crypto industry, the legal landscape surrounding cryptocurrency regulation remains complex and uncertain. Nonetheless, the support from prominent individuals and the active discussion around establishing clear regulations evokes a cautious sense of optimism for the future of this rapidly expanding sector.
Source: Cointelegraph
