07/08/2024 UK body proposes property category for crypto assets, SEC sued over status of NFTs: Law Decoded
The Law Commissionās final report urges the UK government to reclassify crypto assets, addressing current legal gaps.
The Law Commissionās final report urges the UK government to reclassify crypto assets, addressing current legal gaps.
On July 30, the Law Commission of England and Wales insisted that the United Kingdom government categorize all crypto assets as a new form of personal property in its final report.
Itpublished a supplemental reporthighlighting current legal inadequacies as an independent body primarily recommending and reviewing law reforms in its respective jurisdictions.
These inadequacies were of the current categorization of personal property and its legal implications concerning crypto assets.
The commission stated that legal āflexibilityā allows for āthe recognition of a distinct category of personal property,ā capable of recognizing and protecting ācertain digital assets.ā
FTX class action lawyers move to block Sullivan & Cromwellās dismissal motion
On July 29, FTX class action lawyers submitted a motion opposing the law firm Sullivan & Cromwell (S&C), claiming that the firm went beyond standard legal practices.
The class action lawyers alleged that S&C exceeded these legal practices in its efforts to actively facilitate the fraudulent activities of the defunct cryptocurrency exchange.
According to the submitted court documents, the class action lawyers stated that S&C lawyers created āmisleading strategies that furthered FTXās misconduct.ā
The ongoing lawsuit seeks damages for multiple counts, including aiding and abetting fraud, aiding and abetting fiduciary breaches and civil conspiracy.
Bill proposes to give Secret Service more power to pursue crypto crime
On Aug. 2, two United States Senators introduced a bill seeking to expand Secret Service powers to combat crypto-related criminal activity.
Nevada-based Catherine Cortex Masto and Iowa-based Charles Grassley introduced the āCombatting Money Laundering in Cyber Crime Act of 2024ā bill.
If pushed through and approved, the bill would allow Secret Service authorities to investigate crypto transactions made by unlicensed money-transmitting businesses.
It would also enable the Service to investigate potential fraud against US financial institutions to put financial activity āon federal law enforcementās radar.ā
Artists sue SEC over confusing security status of NFTs
On July 29, two artists sued the US Securities and Exchange Commission to determine whether non-fungible tokens (NFTs) fall within the agencyās regulatory remit.
The plaintiffsā attorneys sought clarity on the acts that would trigger US securities laws during NFT creation and sales.
The SEC was questioned whether artists needed to āregisterā NFT art before selling to retail and whether public disclosures regarding ārisksā were required.
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https://cointelegraph.com/news/law-commission-new-property-category-crypto-assets
