Coinbase Takes on SEC in Lawsuit for Regulatory Clarity
Coinbase is suing the Securities and Exchange Commission (SEC), asking a federal court to compel the financial regulator to respond to its demand for more transparent crypto regulations. Coinbase filed a petition last July and sought answers to 50 specific questions that would provide “clarity and certainty regarding the regulatory treatment of digital asset securities,” stating that new rules would benefit the health of US capital markets by allowing for a more efficient allocation of capital. The move follows a Wells Notice from the SEC last month claiming that Coinbase’s staking products are unregistered securities.
Judge Rules in Favour of Yuga Labs in Bored Ape Yacht Club Trademark Lawsuit
Yuga Labs, the creator of Bored Ape Yacht Club, has won a legal battle against Ryder Ripps and Jeremy Cahen for trademark infringement over their RR/BAYC non-fungible token (NFT) collection. The federal judge ruled in Yuga Labs’ favour, stating that the company is entitled to monetary damages and injunctive relief. The defendants claimed their project, which included identical copies of the original Bored Ape Yacht Club pictures, was a parody and protected by the First Amendment. However, the court agreed that the defendants had committed false designation of origin and affirmed Yuga Labs’ position. This verdict sets an important precedent for NFTs, with Yuga Labs describing the final judgement as a “landmark legal victory for Web3.”
EU Parliament Approves Crypto Legislation in Landslide Vote: MiCA and Transfer of Funds
The European Union Parliament has approved the Markets in Crypto Assets (MiCA) crypto licensing regime and the Transfer of Funds regulation. The vote, which saw a majority of 517 to 38 in favour of the legislation, paves the way for the EU to become the first major jurisdiction to introduce a comprehensive crypto law. The MiCA regulation requires crypto wallet providers and exchanges to seek a license to operate across the bloc, while the Transfer of Funds regulation requires crypto operators to identify their customers to combat money laundering. The rules will come into effect in 2024, and the European Securities and Markets Authority will draft secondary legislation under MiCA.
House Republicans Push to Shift Regulatory Oversight of Payment Stablecoins From SEC
House Republicans have released draft legislation aimed at shifting regulatory oversight of payment stablecoins away from the Securities and Exchange Commission (SEC) and towards federal and state bank and credit union regulators. The move comes amid frustration from the GOP and industry executives over SEC Chair Gary Gensler’s approach to digital assets. The proposed legislation, which could also govern digital asset markets, subjects nonbank stablecoin issuers to regulatory examinations, imposes a one-to-one backing of legal tender or short-term Treasury bills, and includes anti-money laundering (AML) and know-your-customer (KYC) requirements.