A partner at K&L Gates law firm, Jeremy McLaughlin, has predicted a resurgence in the US crypto industry amid ongoing regulatory turmoil. According to the crypto-focused lawyer, the US Securities and Exchanges Commission’s recent court losses reignite hopes for the blockchain industry.
SEC Recent Court Loses Reignites Hope That Clear Crypto Legislation Is Underway
McLaughlin’s remarks came after a federal appeal court ruled against the securities regulator in its case with asset manager Grayscale.
Notably, McLaughlin spoke on a panel alongside the CEO of Payment service provider Novatti, Effie Dimitropoulos, and King Lueng, fintech head at Invest Hong Kong, regarding crypto regulation in Melbourne on August 30. During this panel, the lawyer bashed the SEC and its chairman Gary Gensler’s claims that virtually all cryptocurrencies are securities.
During his speech, McLaughlin said regulations initially happened at the state level, with concerned parties aware of their obligations. However, things changed after the SEC and CFTC boarded, causing several markets to close.
He said the SEC’s aggressive approach to crypto caused exchanges to delist tokens while others withdrew from the US market. But despite this outcome, the regulator has refused to surrender its hawkish stance.
Nevertheless, the lawyer believes the bearish outlook is about to change. He stated: “Now that the courts are starting to rein in the SEC a bit, I think there’s some hope that the industry is kind of igniting again in the US.”
Recall the SEC recorded a partial loss in its securities lawsuit against Ripple Labs on July 13. Contrary to the SEC’s claims, the judge ruled that Ripple native coin XRP sales to retail investors are not securities. Also, a judge ruled against the regulator for not allowing Grayscale to convert its BTC trust fund to an ETF on August 29.
Meanwhile, McLaughlin acknowledged crypto regulations’ complexity and uncertainty, believing that recent developments point toward a positive direction. In conclusion, he noted that decisions in other ongoing cases strongly favor digital assets.
Australia Lags Behind In Crypto Legislation, Says Novartis CEO
The panelists further entertained questions about their views on the state of crypto legislation in Australia compared to other countries. Interestingly, Novartis CEO Dimitropoulos responded that Australia lags behind other nations in establishing clear legislation for virtual assets.
The CEO cited Hong Kong and the European Union’s new crypto regulatory frameworks as references, showing Australia is lagging. She mentioned the cost of obtaining legal advice for local digital assets companies, which expires in three minutes.
She said the need for clear legislation affects existing crypto-focused businesses, especially the amount spent on legal services alone.
In addition, the Novartis chief added many crypto bills need actual execution, saying:
There are so many pieces that are still in play with no clear resolution as to when it’s going to happen. So that supports my word: ‘Lagging,’.