Today, three significant judicial proceedings are scheduled to take place in U.S. federal courts, each of which has the potential to have an impact on the cryptocurrency market. The publication of the Hinman documents in the Southern District of New York (SDNY), the hearing on the move to take Binance assets in the District of Columbia (DDC), and the Securities and Exchange Commission’s (SEC) answer to Coinbase’s petition in the Third Circuit are among these developments.
A significant incident will take place at the hearing in the DDC over the probable seizure of Binance assets. Being the biggest cryptocurrency exchange in the world, any disruption to Binance’s operations might result in significant market volatility.
The disclosure of the Hinman documents in the SDNY provides potentially crucial information into the legal status of cryptocurrencies, which is the next point. Bill Hinman, who was in charge of the Division of Corporation Finance at the SEC at the time, made the suggestion that Ethereum might not be regarded as a security in 2018. The disclosure of the documents may give new insight into the legal standing of cryptocurrencies and set a precedent that might have an effect on the price of ether (ETH) and other things.
The SEC’s response to the petition filed by Coinbase in the Third Circuit is crucial, too. In its petition, Coinbase seeks clarification on the SEC’s jurisdiction over bitcoin lending schemes.
The SEC has been asked to provide further information on its stance on a rulemaking request from Coinbase by the United States Court of Appeals for the Third Circuit. Because the present regulations are inappropriate for digital assets, Coinbase had petitioned the SEC for official rulemaking in this area. The SEC has now been directed by the court to provide an explanation within seven days of whether it plans to deny Coinbase’s motion, the justifications for doing so, or a timetable for doing so.
