An amendment to the US Crypto Bill could result in compensation for the SEC to lose. This is also true for Ripple, whose lawsuit is ongoing with the SEC. Attorney James Murphy described the crypto bill as a great opportunity to reform the SEC and curb the trend of regulatory extremism. Meanwhile, US Senator Elizabeth Warren has hinted at the crypto bill.
Is it possible for the crypto bill to set the SEC on track?
The U.S. Securities and Exchange Commission (SEC) allegedly imposes sanctions against digital asset industry-linked firms and leaders. Legal battles led by the commission forced the defendants to pay hefty legal fees over time. However, it’s possible that a draft crypto bill released by Republican lawmakers will put a pause on the regulatory overreach of the biggest Watchdogs.
The bill, drafted by House Financial Services Committee Chairman Patrick McHenry (RN.C.) and House House Agriculture Committee Chairman Glenn Thompson (R-Penn.), sent a wave of relief to the crypto industry. The Crypto Law is expected to create a clear framework for digital assets. There are also signs that he is holding the SEC and CFTC accountable for his actions.
Attorney James Murphy described the crypto bill as a great opportunity to reform the SEC. As the draft is still under consideration, the attorney suggested an amendment. He stated that at the end of each case brought by the commission, the court decides which side is the winner. However, if it turns out that the plaintiff has failed to prove his claims, he will pay all the attorney’s legal fees incurred by the defendants.
Ripple will spend $200 million in SEC lawsuit
Ripple CEO Brad Garlinghouse, who was a defendant in the SEC lawsuit, stated that the blockchain firm will spend around $200 million defending itself when it is finished. However, in the US SEC Vs Lbry case, Watchdog’s approach to delaying legal action drove the defendants into possible bankruptcy. The lawyer emphasized that with this change in the crypto bill, the SEC will be liable to reimburse the defendant’s legal fees if it is lost. He states that if Ripple wins the case, the commission may have to pay around $200 million in legal fees from the defendant.
Elizabeth Warren hints at crypto bill
After recently claiming that crypto payments are involved in Chinese fentanyl trading, US Senator Elizabeth Warren on Saturday hinted at the possibility of introducing a bill that would prevent such loopholes in the crypto industry. Earlier, Cryptokoin.com reported that Warren shared research data supporting claims that Chinese businesses fueled the Fentanyl epidemic and made millions in cryptocurrencies. The Senator had recently drawn the ire of the crypto market community for his attacks on the industry. These attacks come alongside the SEC’s ongoing regulatory scrutiny over crypto businesses.
Senator Warren hinted on Saturday that he has a bill that will close the loopholes and impose rules on the crypto industry. He reiterated that crypto payments are involved in illegal activities such as stealing funds, evading sanctions and financing terrorism. In this context, Warren said, “This is a big problem, but one that we can solve. There is a draft law that will close legal loopholes and apply common sense rules to the industry.”
The Senator recently spoke about the environmental impacts and energy consumption concerns of Bitcoin mining. Meanwhile, the Senator is often the target of criticism in the crypto community for his close ties to SEC Chairman Gary Gensler, who is a strong skeptic about crypto trading in the US.
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