Do Kwon and Terra lose in court against the US Securities and Exchange Commission? | Crypto News

Legal troubles mount for terraform labs and fedo kwan welcome to the daily forecast june the 10th 2022 i'm forecast joel flynn with the latest on what's happening on the blockchain and the problems at terraform.

labs continue to make headlines but those are also raising jurisdictional questions about the reach of u.s law so let's get you up to speed on that and everything else from asia to the world join thousands of nft traders who already start their day on crypto slam all right let's start with the latest on terraform labs legal battles this time in the us the company and its ceo do.

kwan have been ordered to comply with

subpoenas from the securities and exchange commission over the company's mirror protocol that just lost appeals against the sec subpoenas quan was first served in september last year in new york as part of an investigation into terror's decentralized finance service that offers investors access to cryptocurrencies mirroring the price of u.s stocks like amazon terraform lab's.

appeal claim that the sec does not have

jurisdiction over the company which is headquartered in singapore nor over kwon himself who is a south korean citizen they also argued the sec violated its own rules by serving the motions to kwon in person however the order from an appeals court in new york's second circuit said the sec hadn't done anything wrong meanwhile a south korean.

media outlet has claimed the sec has

begun investigating terror's core developers as well as kwon over potential money laundering do make sure you check out for the latest developments on terra and dokwan india continues to wrestle with the opportunities and the challenges of crypto the country's chief economic.

advisor has added his voice to a chorus

warning about the risks emanating from investment in the sector but that comes as the reserve bank of india has been firming up plans to issue a central bank digital currency forecast's moniker gauche has more from goa india it might look like paradise but this is where india's chief economic advisor is.

worried crypto markets are getting

inspiration from v anantha nageshwaran on thursday compared cryptocurrencies to the world of caribbean pirates and he wasn't talking about the beards speaking at an event hosted by the associated chambers of commerce and industry of indi he warned about the lack of regulation in a sector where port winners take it all.

according to local media he said quote i

wouldn't be very excited by cryptocurrencies because sometimes we are not fully aware or comprehend the kind of forces we are unleashing ourselves it echoes warnings from the reserve bank of india last month those came in the wake of the collapse of terra's ust and luna but it also comes just as the reserve bank of india.

or rbi firms up plans for a central bank

digital currency or cbdc deputy governor t ruby shankar said in a press conference on wednesday the bank was pressing ahead with the move first announced in its union budget for this financial year shankar confirmed that the rbi plans to introduce the cbdc in stages this fiscal year various technologies will be used the only thing i would like to emphasize.

that the process of introduction would

be gradual so that there is no disruption in the banking system or the financial system the rbi act of 1934 was amended in this year's finance bill to provide the necessary legal framework for issuing the cbdc and in its most recent annual report the rbi said the digital rupee must confirm with india's monetary policy and financial stability. objectives

it also noted that proofs of concept and

pilots would be carried out before the currency's launch from goa india and forecasts monika ghosh and finally the consensus 2022 blockchain crypto and metaverse conference is underway in austin texas forecasts editor-in-chief angie lau earlier moderated a rather feisty panel there on the digital dollar she also took a dive into the implications of the.

recent u.s digital assets bill with

legal expert lilly tesla forecast's carolyn wright has more during the panel dante despate the head of policy for stablecoin issuer circle called central bank digital currencies a preposterous idea he went on to suggest that the fed issuing its own digital dollar is equivalent to the idea of the united states federal aviation administration building jet engines and flying planes.

despate claimed that circle's usdc

stablecoin is a real digital solution however rowan gray a law professor at willamette university an ardent cryptocritic argued that as a private company circle is shielded from liability and the public would be put at risk if it went under grey also exclaimed f the fed in his opening remarks.

meanwhile caitlyn long founder of crypto

bank custodia said that despite growth in the defy space there is still no solution for moving funds between it and the traditional financial system separate to the panel our editor-in-chief angie lau caught up with lily tesla of law firm sidley austin asking what stood out most to her in the recently introduced u.s digital asset bill the one area where i've been focusing a lot of my attention is the.

application of the securities

commodities laws to digital assets and market participants that are regulated by the sec and cfdc so for starters on the security side there's still that open question of if something is issue pursuant to an investment contract an asset what is the subject of that investment contract is that asset.

security is it a commodity

how does that asset trade on the secondary market or even the primary transaction and it's pretty well settled in some of the case law regarding primary issuance being potentially under investment contract to security but the subject of that in the bill is referred to as an ancillary asset and itproposes a disclosure regime where you would disclose as part of a filing certain key information with respect to.

ancillary asset for a certain amount of

time and then at some point in time that asset would during the disclosure time and then at some point for decentralization the future the asset would be treated as a commodity and the it would be fall within the cftc regulation so it's beyond kyc it's know your security because it might be a.

commodity is this what we're talking

about yes i i like that uh characterization because it's important because the the us has a securities regime and commodities regime under two different regulators sec and cftc and right now they're trying to work out the regulators into what what jurisdiction is the asset fall under or is it overlapping jurisdiction at some point in time and certain provisions of this act go to to that issue so it it aims to.

streamline uh the thinking at least on

the agency side but it seems to me it's still very bifurcated the cftc have clear jurisdictional powers and rules and maybe expanded a little bit in this legislation but the sec still plays a significant role here yeah no no definitely it's not that one regulator is stepping away it's figuring out what portions of the transactions at what stage of the life cycle of the asset is it regulated by each regulator.

and not just the asset it's about the

market participants too the the regulations regulate intermediaries and so intermediaries that transact in certain digital assets know do they need to be registered with the secs they need to be registered the cftc for purposes of secondary transaction you can check out more on the implications of the u.s.

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