Ladies and gentlemen of the jury, the verdicts are coming in…
And they suggest crypto is the big winner.
On Thursday, a New York court dismissed a proposed class action lawsuit against leading decentralized crypto exchange Uniswap.
The suit alleged Uniswap was responsible for causing harm to investors by allowing scam tokens to be issued and traded on the protocol.
We won’t get into all the details of the case. The big takeaway is this…
In her ruling, Judge Katherine Polk Failla (more on her in a moment) classified Ethereum as a commodity… which the Securities and Exchange Commission (SEC) hasn’t done.
This is a major win for crypto. Here’s why…
It would put Ethereum under the jurisdiction of the Commodity Futures Trading Commission (CTFC) instead of the SEC.
The major difference between the two agencies is that the SEC regulates securities trading, and the CFTC regulates commodities trading.
While the SEC is doing everything it can to derail crypto adoption… The CFTC is allying with the industry on regulatory reform.
That ruling comes on the heels of Tuesday’s major courtroom victory for Grayscale Investments.
The company applied to convert its Grayscale Bitcoin Trust (GBTC) to a spot exchange-traded fund (ETF). The SEC rejected its application.
However, a federal appeals court sided with Grayscale and ordered the SEC to vacate its rejection of Grayscale’s ETF filing.
In the order, the court’s panel of judges said the SEC was “arbitrary and capricious” for approving bitcoin futures ETFs but rejecting a spot bitcoin ETF.
In July, the SEC also lost a lawsuit against Ripple in which it claimed the founders were selling unregistered securities with the sale of their XRP token.
The judge in that case ruled that XRP is a security when sold to institutional investors but not when sold to the public on exchanges like Coinbase.
This was a major victory for the entire space because the SEC has attempted to label all cryptos as securities, aside from bitcoin. This ruling pushes back against that idea.
And remember Judge Failla?
She’s presiding over the SEC’s case against Coinbase, the country’s largest crypto exchange. So this is another good sign for crypto.
Here’s what Daily editor Teeka Tiwari recently said about Tuesday’s landmark ruling in favor of Grayscale:
Now, let me be very clear: Nothing is easy when it comes to crypto and crypto adoption. So I fully expect that the SEC will drag its feet and come out with new reasons as to why it doesn’t want to approve a bitcoin ETF.
But the writing is on the wall. We’re going to get a bitcoin ETF. The court unanimously came out and just executed every single point the SEC tried to bring up for why it should not allow a spot settled bitcoin ETF.
To me, it’s not whether we’re going to have an ETF, it’s just a question of time. Now that this ruling is in place, it’s removed a massive hurdle for bitcoin ETFs to get approved.
As Teeka says, the war isn’t over yet. On Thursday, the SEC delayed a decision on spot bitcoin ETF applications from BlackRock, Fidelity, and several other financial firms.
So don’t expect it to go down without a fight.
But the writing is on the wall… We’re getting much more regulatory clarity around crypto.
And once the SEC approves a spot bitcoin ETF – and Teeka believes it eventually will – it’s off to the races.
So take advantage of this lull in the crypto market to position yourself now. Once the train leaves the station, it’ll be too late.
And if you’re looking for smaller cryptos with potentially higher upside than bitcoin, Teeka has found a project that’s enabling a major trend: the rollout of a central bank digital currency, or CBDC.
You see, the Federal Reserve recently launched a program that could lead to a mandatory recall on the U.S. dollar.
According to Teeka, this program could replace the dollar with a new digital version that will be radically different from what you have in your bank account right now.
He’s put together a briefing to explain what this new digital dollar regime means for you and your money.
Plus, he’ll also show you the one move you must make when your bank tells you it’s moving all your cash into this new digital dollar.
Editorial Director, Palm Beach Daily