On July 30, the Law Commission of England and Wales recommended that the UK government categorize all crypto assets as a new form of personal property. The commission highlighted the inadequacies of the current legal framework in recognizing and protecting digital assets.
Points
- UK Law Commission suggests a new personal property category for crypto assets.
- The current legal framework is inadequate for digital assets.
- FTX class action lawyers oppose Sullivan & Cromwell’s dismissal motion.
- A new bill proposes expanding Secret Service powers to combat crypto-related crime.
- Artists sue the SEC over the regulatory status of NFTs.
On July 30, the Law Commission of England and Wales published a final report urging the UK government to categorize all crypto assets as a new form of personal property. This recommendation aims to address the current legal inadequacies in recognizing and protecting digital assets. The commission, an independent body responsible for recommending and reviewing law reforms, highlighted the need for legal “flexibility” to recognize a distinct category of personal property capable of safeguarding digital assets.
The supplemental report outlines the inadequacies of the current categorization of personal property and its legal implications concerning crypto assets. The commission stressed that the existing legal framework fails to adequately protect certain digital assets, necessitating the creation of a new category to ensure proper recognition and protection.
FTX Class Action Lawyers Move to Block Sullivan & Cromwell’s Dismissal Motion
On July 29, FTX class action lawyers submitted a motion opposing the law firm Sullivan & Cromwell （S&C）, claiming that the firm exceeded standard 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 alleged that S&C created “misleading strategies that furthered FTX’s misconduct.” 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 August 2, two United States Senators introduced a bill seeking to expand Secret Service powers to combat crypto-related criminal activity. Senators Catherine Cortez Masto of Nevada and Charles Grassley of Iowa introduced the “Combatting Money Laundering in Cyber Crime Act of 2024.” If approved, the bill would empower the Secret Service to investigate crypto transactions made by unlicensed money-transmitting businesses and investigate potential fraud against US financial institutions, putting such financial activity “on federal law enforcement’s radar.”
Artists Sue SEC Over Confusing Security Status of NFTs
On July 29, two artists filed a lawsuit against the US Securities and Exchange Commission （SEC） to determine whether non-fungible tokens （NFTs） fall within the agency’s regulatory remit. The plaintiffs’ 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 “register” NFT art before selling to retail investors and whether public disclosures regarding “risks” were required.
解説
- The UK Law Commission’s recommendation for a new personal property category for crypto assets highlights the need for updated legal frameworks to protect digital assets.
- The FTX class action lawsuit against Sullivan & Cromwell underscores the importance of legal accountability in the crypto space.
- The proposed bill to expand Secret Service powers reflects the growing focus on combating crypto-related crime.
- The lawsuit against the SEC regarding NFTs illustrates the ongoing regulatory uncertainty in the digital art market.
- These developments emphasize the evolving legal landscape surrounding crypto assets and the need for clear regulatory guidelines.