Digital Asset Lawyer Cryptocurrency Industry in the United States May Be on the Verge of Recovery

US Cryptocurrency industry may recover soon, says digital asset lawyer.

Author: Jesse Coghlan, Cointelegraph; Translation: Song Xue, LianGuai

A digital asset lawyer from K&L Gates stated that after several rulings that “reined in the US Securities and Exchange Commission”, people hope to see a new revival of the cryptocurrency industry in the United States.

On August 31, Jeremy McLaughlin, a partner at the global law firm, pointed out that multiple court cases in the United States have rejected the argument made by SEC Chairman Gary Gensler, who claimed that almost all digital assets are securities.

McLaughlin, along with Effie Dimitropoulos, CEO of payment service company Novatti, and King Leung, Head of Fintech Investment in Hong Kong, spoke on a panel at Intersekt23 in Melbourne.

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He stated that early cryptocurrency regulation was done at the state level and “it was very clear what you needed to do,” but after the intervention of the SEC and the Commodity Futures Trading Commission, “many markets started to close.”

McLaughlin said, “People delisted tokens, some companies withdrew from the United States because they saw the aggression from the SEC, and it will continue.”

“Now the courts are starting to put some limits on the SEC, and I think there is hope for the industry to reignite in the United States.”

In recent months, the SEC has suffered defeats in lawsuits against a cryptocurrency company.

On August 29, a US district court judge ruled against the SEC’s rejection of Grayscale Investments’ application to convert its Bitcoin fund into an exchange-traded fund.

In July of this year, the SEC also suffered a partial setback in the case against Ripple Labs for the sale of XRP, when a judge ruled that the sale of XRP to retail traders was not a security.

“As a lawyer in this field, it is very difficult to advise clients,” said McLaughlin. He added that not being able to give clients a clear answer is frustrating.

However, he does see hope that cryptocurrency regulation is emerging from the “chaotic abyss.”

McLaughlin added, “Finally, there are cases being filed and the rulings have been very favorable to the digital asset industry.”

Australians “lagging behind” while others benefit

In another part of the discussion, panel members were asked about their views on the state of cryptocurrency legislation in Australia compared to other countries. Dimitropoulos from Novatti had one word: “lagging.”

He pointed out that the new regulatory frameworks in Hong Kong and the European Union demonstrate that cryptocurrency regulation in Australia is lagging behind.

“It is clear that Australia is lagging behind. This means…how it will impact businesses operating on the ground using digital assets.”

She emphasized the expenses that local cryptocurrency companies need to obtain legal advice, “which advice may become ineffective within three minutes.”

“We have heard that the Treasurer will introduce regulatory measures, ASIC will take action, and the bill of Senator Prague is working,” she said.

“There are many things still in progress, but there is no clear solution as to when they will happen. This supports my statement: ‘lagging behind’.”

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