With midterm elections coming up, there’s been a lot of focus on politicians and their stance on cryptocurrency. Financial regulators and cryptocurrency companies are chomping at the bit to get an idea of what regulations will be. An influx of cryptocurrency-related money has been flowing into both parties for the 2022 midterm elections. Here’s a look at what’s going on with Congress and crypto, XRP lawsuit news, and why the SEC and CFTC may be making plans of their own.
What Happens If Congress Doesn’t Pass Crypto Regulations?
Market regulators may intervene if Congress doesn’t provide laws to regulate the crypto market, as mentioned by the Commodity Futures Trading Commission (CFTC) Chairman.
“In the absence of clear direction from Congress, which I know they’re working on, it’s our responsibility to work together and to come up with solutions to the extent that we’re able to within the authority that we currently have,”Rostin Behnam said in an interview with Bloomberg News.
Should The SEC or CFTC be in Charge of Cryptos?
Crypto firms have been waiting for a signal on how they should approach regulations. Many have lobbied for the CFTC to take on a larger role. A recent bipartisan bill to bolster the CFTC’s power was proposed by Congress.
This means the regulators’ powers currently include investigating fraud and manipulation in the crypto market, while Securities and Exchange Commission Chair Gary Gensler has said he thinks most digital assets are securities, which are subject to his agency’s rules.
The SEC’s Cryptocurrency Assets and Cyber-crime division is looking to add 20 more agents to its staff.
An SEC official has announced that the next 20 staff members to be hired will include investigative staff attorneys, trial lawyers, and fraud analysts. Both SEC Chair Gary Gensler and Enforcement Director Gurbir Grewal believe that the 20 additions are much needed and key to overseeing Wall Street’s newest and most profitable industry.
XRP Lawsuit News Update
We’re still in a legal grey when it comes to cryptocurrencies. The SEC v Ripple case is one of the major lawsuits going on right now. That said, it’s essential to stay up to date on the latest XRP lawsuit news.
In the SEC v Ripple case, there’s a lot to take into account. One of the next significant updates is due May 13, 2022. Ripple is set to respond to the SEC’s claim that documents relating to former SEC official William Hinman are protected by the attorney-client privilege.
Following May 13, 2022 — the SEC’s reply to Ripple’s response is due on May 18, 2022. These two dates may be crucial to the case, and depending on what happens — it can have a major impact on the overall cryptocurrency market.
Despite the ongoing XRP lawsuit, it’s been business as usual for Ripple. Japan’s SBI Motor Japan recently announced customers could make payments for used cars using XRP and Bitcoin (BTC). Although there’s a major lawsuit in the U.S. — there can still be adoption for XRP and Ripple Labs’ technology. For the U.S., it’s wait and see for many.
Stay tuned for Legal Favor’s updates on Ripple’s response and the SEC’s reply.