Launchy Regulatory Roundup #27 - SEC Dismissing Lawsuits, Shifts Crypto Enforcement

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Welcome to our 27th 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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In Today's Edition:

• Headline: SEC Dismissing Lawsuits, Shifts Crypto Enforcement 🎉 

• Global Legal Roundup: SEC Approves First Yield-Bearing Stablecoin 💵 

• Case Study: Trump's First 30 Days & Crypto 🔎 

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HEADLINE

SEC Dismissing Lawsuits, Shifts Crypto Enforcement

State of play: The SEC is markedly shifting its stance on crypto enforcement. It has agreed to dismiss its lawsuit against Coinbase—an action that accused the exchange of operating as an unregistered securities broker related to its staking services.

• In parallel, the SEC has ended its investigation into OpenSea after issuing a Wells Notice

• The SEC also recently dropped its appeal over a broker-dealer rule intended to expand its jurisdiction over decentralized finance platforms.

• The regulatory reset is further bolstered by significant political advocacy from crypto firms, as well as a broader pro-crypto political climate.

• According to Fox Business’ Eleanor Terrett, SEC leadership is expecting Trumps’s pick for chair Paul Atkins.

What’s Next: Under the leadership of Acting Chair Mark T. Uyeda and crypto-friendly Commissioner Hester Peirce, the SEC is now working to develop new guidelines that favor industry innovation.

Why it Matters: This dismissal signals a turning point not only for Coinbase but for the broader crypto market.

Our Take: Under the new leadership, stakeholders should expect further clarification and potentially more predictable guidelines that could foster both growth and stability in the crypto market.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 SEC approves first yield-bearing stablecoin security.

• 🇺🇲 Utah’s Bitcoin reserve bill heads to second Senate reading.

• 🇺🇲 Coinbase asks Congress to grant CFTC spot market authority.

• 🇺🇲 US Senate confirms Howard Lutnick as Trump’s commerce secretary.

• 🇺🇲 SEC acknowledges crypto ETF filings as reviews, approvals accelerate.

• 🇺🇲 Franklin Templeton seeks SEC approval for a Solana ETF involving staking.

• 🇺🇲 SEC announces ‘Cyber & Emerging Technologies Unit’ to combat crypto fraud.

Europe:

• 🇳🇴 Norway indicts four over alleged $80M crypto scheme.

• 🇮🇹 Italy engages with crypto firms on regulatory safeguards.

• 🇪🇺 10 stablecoin issuers approved under EU’s MiCA — Tether is left out.

• 🇪🇺 European Central Bank ramps up wholesale CBDC platform development.

• 🇪🇺 European regulator proposes MiCA guidelines for crypto staff competence.

Middle East & Africa:

• 🇳🇬 Nigeria files $81.5B lawsuit against Binance.

• 🇳🇬 Nigeria to tax cryptocurrency transactions for revenue boost

APAC:

• 🇦🇺 Australian regulator’s ‘blitz’ hits crypto exchanges, money remitters.

• 🇭🇰 Hong Kong regulator unveils ‘ASPIRe’ roadmap to become crypto hub.

CASE STUDY

Trump's First 30 Days & Crypto

Credits to Cointelegraph for the original article.

State of play: In his first month in office, President Donald Trump has set in motion a series of groundbreaking moves that are reshaping the US crypto landscape.

• On inauguration day, Trump stirred the market by launching his own memecoin, TRUMP, and having his family’s DeFi arm, WLFI, make $47M crypto purchase.

Almost immediately, his administration began overhauling key regulatory bodies:

• Trump nominated Paul Atkins to replace Gary Gensler, with Acting Chair Mark Uyeda and Commissioner Hester Peirce spearheading a new SEC crypto task force to craft clearer, innovation-friendly guidelines.

• The Senate confirmed a pro-crypto Treasury secretary candidate, Trump nominated Brian Quintenz as the new CFTC chair following the departure of former Chair Rostin Behnam.

• The administration also fired of the Consumer Financial Protection Bureau head on February 3 and the confirmation of a new Commerce Secretary.

• At the same time, the administration established an internal crypto working group, tasked with positioning the US as the global crypto capital and even exploring the creation of a national crypto reserve while banning a CBDC.

The administration also made waves on the economic front, imposing tariffs on goods from Mexico, Canada, and China on February 2 and again on steel and aluminum, which sent shockwaves through traditional and crypto markets.

Other notable actions include Trump’s high-profile pardon of Silk Road founder Ross Ulbricht on January 22, marking a symbolic gesture toward crypto freedom.

• Additionally the administration also initiated a prisoner swap on February 12 involving crypto exchange BTC-e’s former operator, Alexander Vinnik.

Our Take: Trump’s first 30 days have signaled a commitment to a crypto-friendly regulatory framework and set the stage for further legislative and administrative efforts aimed at solidifying the US position as a global crypto powerhouse.

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NOTEWORTHY READS & MEME

• Paul Grewal’s read on SEC v Coinvase case dismissal.

• Hester Pierce’sstatement on SEC’s crypto task force.

• Blockchain Association’s read on DeFi-killing broker rule.

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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.