Image default

US Crypto Exchanges Could Face Class Action Lawsuit: Reports

According to a March 9 Fox Business report, the next salvo in Uncle Sam’s war on crypto could be a massive class action lawsuit filed on behalf of retail investors against top exchanges.

The outlet reported that leading securities lawyer Tom Grady is preparing for potential litigation against America’s largest crypto companies, including Coinbase, Robinhood, and Kraken.

The allegation is the same old story that the Securities and Exchange Commission keeps repeating – illegal sales of unregistered securities. In a press release shared with the outlet, Grady stated:

“We believe Coinbase, Robinhood, and other exchanges have violated the law, and investors who lost money purchasing cryptocurrencies on their platforms may be entitled to recover those losses.”

Crypto Has Not Been Classified Yet

Furthermore, the securities lawyer is chasing clients of Coinbase and other exchanges who have made losses from their crypto investments.

However, Congress has yet to officially classify digital assets as securities, so regulators such as the SEC have been taking things into their own hands with enforcement actions.

There has been a lot of backlash from industry executives and experts over what many views as an extrajudicial clampdown by the SEC. U.S. lawmakers have been procrastinating on a regulatory framework, so no agency has full jurisdiction over the asset class yet.

Crypto lawyer John Deaton commented:

“This is another example of excessive litigation being created and encouraged by a lack of regulatory clarity in the United States regarding digital assets.”

He added that when there is regulatory uncertainty coupled with an anti-crypto campaign by regulators, “it creates a litigation hotbed.”

“We will continue to see litigation chaos in the United States, further driving innovation abroad,” the lawyer concluded.

The chief executives of Coinbase, Circle, and Ripple have all warned about the innovation and talent exodus from the U.S. should the crackdown on crypto and fintech continue.

Crypto Markets Plunge

It is another red Friday morning during the Asian trading session as markets bleed out again. Markets have dumped almost 7% in the past 12 hours or so, with total capitalization falling to a two-month low of $970 billion.

BTC has shed 8% on the day, falling briefly below $20,000 before recovering to slightly above it at the time of writing. Meanwhile, Ethereum has tanked 7.6% in a fall to $1,426, according to CoinGecko.

Here’s How To Stay Up To Date On Crypto With CryptosRUs!

Learn about Bitcoin, Ethereum, and so much more at the CryptosRus Academy.

For the best exchanges, check out our top exchange guide. 

Secure your crypto with Ledger and Trade your way to victory with help from LuxAlgo

Sign up for our bi-weekly newsletter for news and exclusive analysis.

Follow CRU News Desk on Twitter for our latest articles and Twitter exclusive threads.

Stay up to date with George on Tik Tok, Instagram, and his brand new clips channel.

Source link

Related posts

Silvergate plans to wind down bank ops, liquidate after crypto metldown

Melodie Denning

So you want funding for your NFT project?

Melodie Denning

Russian Parliament Clears Draft Bill That Exempts Digital Assets, Crypto Issuers From VAT

Melodie Denning

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy