Lawsuits against cryptocurrency companies
Lawsuits against cryptocurrency companies will continue, and this indicates that investigations are ongoing, amid a bullish trend in the cryptomarket.
In this regard, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), will continue to sue cryptocurrency companies, following the dynamics he has maintained so far.
According to analysts at investment bank TD Cowen, the lawsuits against cryptocurrency companies suggest that the official has found a new foothold for his actions, after a court recently ruled in favor of the regulatory agency.
Last March 4, Judge Tana Lin ruled that a case involving cryptocurrencies falls under the SEC’s jurisdiction because the cryptoassets in question are securities.
The ruling came amid the debate that has been facing the cryptocurrency industry and regulators over whether cryptoassets fall into the category of securities or commodities.
Now lawsuits against cryptocurrency companies is something that rocked the cryptomarket at the time.
For the SEC most cryptocurrencies are securities and the agency only classifies Bitcoin (BTC) as a commodity.
READ MORE: THE PENALTY FOR LATE CREDIT CARD PAYMENTS.
Lawsuits against cryptocurrency companies
While, on the other side, the digital assets industry believes that it is necessary to legislate and pass laws that provide clarity to regulate the cryptoassets sector.
So far there is no law regulating cryptocurrencies, and there are still certain gaps in regulation.
In 2023, lawsuits against cryptocurrency companies increased, when the SEC filed a flurry of indictments against several companies in the bitcoin (BTC) and other cryptocurrency ecosystem.
And now, analysts at TD Cowen anticipate that Gensler will continue to sue cryptocurrency companies and also cryptocurrency issuers for at least the next two years, until his term ends in June 2026.
Gensler “prefers to pursue litigation to clarify the law, rather than have Congress establish a regulatory regime for cryptocurrencies,” analysts note.
Gensler’s expected actions may result in more conflicting decisions before Congress finally addresses legislation on the structure of the cryptocurrency industry, they add from TD Cowen Washington Research Group.
And in the meantime, the debate over whether cryptoassets are securities or commodities will continue to rage.
READ HERE: HISTORIC BITCOIN PRICE IN MARCH.
Other concerns
While, in Europe, the main problem for cryptocurrencies is based on money laundering.
The European Union’s anti-money laundering and counter-terrorist financing guidelines have been extended to European cryptocurrencies by a decision of the region’s banking watchdog.
The European Banking Authority (EBA) said on January 16 that the amended guidelines aim to help cryptoasset service providers (CASPs) identify their risk of exposure to financial crime due to their “customers, products, delivery channels and geographic locations.”
Last February, in testimony before the House Financial Services Committee, a U.S. Treasury official expressed concern about the use of cryptocurrencies in illicit finance and has called for more authority to prosecute bad actors.
