Launchy Regulatory Roundup #15 - Trump Considers White House Role for Crypto Policy

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Welcome to our 15th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

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President-elect Trump’s push for a dedicated crypto policy role signals a bold new chapter for crypto in the sphere of the US governance, while a landmark court ruling challenges the foundations of decentralized organizations. These developments could pave the way for clearer regulations but also raise critical questions for innovation and accountability.

In Today's Edition:

• Headline: Trump Considers White House Role for Crypto Policy 🇺🇲 

• Global Legal Roundup: Turnover at SEC & Crypto Tax 🚨 

• Case Study: Judge Holds DAO Members Liable Under Partnership Laws 🧑‍⚖️ 

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HEADLINE

Trump Considers White House Role for Crypto Policy

State of play: President-elect Donald Trump’s team is considering creating a dedicated role in the White House to focus exclusively on crypto policy, according to Bloomberg.

• The role's scope is still under consideration, potentially serving as a senior White House staffer or a "crypto czar."

• The transition team has reportedly been in talks with prominent crypto executives.

• Ripple CEO Brad Garlinghouse and executives at Circle have discussed potential appointments with Trump's team.

• Coinbase CEO Brian Armstrong also engaged in a phone conversation with Trump about crypto policies and key leadership roles for the SEC and CFTC.

• Following his election victory, Trump appointed crypto-friendly leaders, including Howard Lutnick as the Secretary of Commerce and Robert F. Kennedy Jr. as Secretary of Health and Human Services.

What’s Next: The Trump administration is likely to formalize the crypto policy role soon, with candidates being vetted and key policy details outlined.

Why it Matters: These developments underscore the increasing influence of the crypto industry in shaping US policy under the incoming administration.

Our Take: This move reflects a strong pro-crypto stance, offering the potential for clearer regulation and innovation. However, its success will depend on finding the right balance between fostering growth and addressing regulatory concerns.

GLOBAL LEGAL ROUNDUP

North America:

• 🇺🇲 SEC Chair Gary Gensler to step down.

• 🇺🇲 SEC sends reparations to BitClave ICO investors.

• 🇺🇲 CFTC report endorses tokenizing trading collateral.

• 🇺🇲 SEC broker-dealer rule struck down by US courts.

• 🇺🇲 Court prolongs Tornado Cash developer pre-trial detention.

• 🇺🇲 Turnover at SEC continues as Lizárraga announces January exit.

• 🇺🇲 Solana ETF regulatory filings flood in as Gensler sets departure date.

• 🇺🇲 Mark Uyeda pledges crypto-forward approach after Gensler resignation.

Europe:

• 🇷🇺 Russia plans to restrict crypto mining in 13 regions to save electricity.

• 🇬🇧 UK to deliver comprehensive crypto regulation framework by early 2025.

MENA:

• 🇦🇪 BlackRock receives license to operate in Abu Dhabi.

APAC:

• 🇯🇵 BIT Mining to pay $10M fine for bribing Japanese politicians.

• 🇯🇵 Japan passes stimulus package, commits to crypto tax reform.

• 🇰🇷 South Korean city threatens to sell crypto of tax debtors.

• 🇰🇷 South Korea’s Delio declared bankrupt with $1.75B in assets lost.

• 🇰🇷 South Korea’s Democratic Party pushes to implement 20% crypto tax.

• 🇨🇳 Shanghai judge says cryptocurrency is a commodity, legal to own.

CASE STUDY

US Judge Holds DAO Members Liable Under Partnership Laws

State of play: A US federal judge ruled that members of decentralized autonomous organizations (DAOs) can be held liable for the actions of other members under California's partnership laws.

• The case involved a lawsuit against Lido DAO, where investor Andrew Samuels claimed token losses due to alleged securities law violations.

• Judge Vince Chhabria classified Lido DAO as a general partnership, holding its members accountable, including Paradigm, a16z, and Dragonfly.

• Robot Ventures was exempted due to insufficient evidence of partnership involvement.

• Miles Jennings of a16z Crypto called the ruling a major setback for decentralized governance.

• Miles warned that even minimal participation, like forum posts, could lead to liability.

Our Take: The decision challenges the foundational premise of DAOs as decentralized and liability-free organizations, potentially deterring participation and innovation.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Justin Sluaghter’s read on the 2024 crypto public opinion poll.

• Gensler’s speech on the 56th annual Institute Securities Regulation.

• Musk & Ramaswwamy’s read on DOGE plan to reform government.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.