Cryptocurrency market could be on verge of fundamental shift after these legal events happen
Three major legal events are slated to occur within the U.S. federal court system today, each with the potential to send ripples through the crypto market. These events include a hearing on the motion to seize Binance assets in the District of Columbia (DDC), the release of the Hinman documents in the Southern District of New York (SDNY) and the Securities and Exchange Commission (SEC)’s response to the Coinbase petition in the Third Circuit.
The hearing in the DDC, involving the potential seizure of Binance assets, is a landmark event. As the largest cryptocurrency exchange globally, any disruption to Binance’s operations could cause considerable turbulence on the market.
Next, the release of the Hinman documents in the SDNY offers potentially pivotal insight into the legal classification of cryptocurrencies. In 2018, Bill Hinman, the then director of the SEC’s Division of Corporation Finance, suggested that Ethereum might not be considered a security. The documents’ release could bring new clarity to the legal status of cryptocurrencies, offering a precedent that may impact the Ether (ETH) price and beyond.
Finally, the SEC’s response to the Coinbase petition in the Third Circuit is of immense importance. Coinbase’s petition requests clarification regarding the SEC’s authority over cryptocurrency lending programs.
The United States Court of Appeals for the Third Circuit has ordered the SEC to clarify its position on a rulemaking petition from Coinbase. Coinbase had petitioned the SEC for formal rulemaking in the digital assets sector, arguing that the current requirements are ill-suited for digital assets. The court has now ordered the SEC to explain within seven days if it intends to decline Coinbase’s request, the reasons for such a decision or a timeline of when it expects to come to a decision.