đȘ Judicial sea change
Courts move slowly â it's best to remember that
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Much has been said about a more crypto-friendly White House and Congress.
Letâs say a bit more: Itâs probably not hyperbole to say that the incoming administration, as well as the forthcoming session of Congress, is the most crypto-friendly ever. Itâs an outcome borne by two dynamics: a near-decade of industry lobbying and an election season wherein crypto companies and their backers spent millions of dollars to put their favored candidates in office.
Okay fine, youâve heard this before. And yeah, it remains to be seen what lawmakers, policymakers, not to mention Donald Trump, do once they take office. Maybe they give the crypto faithful everything they wanted. Maybe they donât. But itâs more likely than not that the industryâs support â both political and financial â will be rewarded. How long this all plays out is most likely the biggest unknown at this point.
But what about the courts?
I donât have clear answers on this, so if youâre reading and do, please shout at me on Twitter (@mpmcsweeney) ahead of next weekâs edition. But recent court cases suggest a system ambivalent at best about the governmentâs more aggressive oversight of crypto â and a GOP-dominated Supreme Court could further fuel this trend.
Remember, the SEC was accused of "gross abuse of power" in its case against DEBT Box. The statement, earlier this year, echoed criticism issued by many in the crypto space. Gensler later told lawmakers that the case wasnât "well handled," the closest to a public mea culpa issued in the matter.
The SECâs years-long case against Ripple was more mixed, but once again, the agencyâs push against Rippleâs programmatic sales of XRP proved fruitless. The two sides are still fighting over a $125 million judgment, as the SEC sought a much greater penalty.
Perhaps more interestingly, the US Supreme Courtâs decision this year to strike down the so-called Chevron doctrine â by which courts generally deferred to the expertise of the executive branch on regulatory matters â could lead to a more crypto-friendly environment as well.
If a judicial sea change is coming (or already here), its evolution will be slower than, say, the White House or Congress. Courts move slowly. Remember, the Ripple case was filed nearly four years ago.
A decade ago, most judges probably hadnât heard of bitcoin.
And now, on to the (holiday edition) roundup:
â Michael McSweeney
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