Intro/Disclaimer: Since late 2022, I’ve prepared weekly updates for attorneys at my firm to stay abreast of the latest Web3 legal developments. The biggest stories are included in Bi-Weekly posts on the firm’s BitBlog, where we provide tl;dr overviews and insights into the biggest stories from the past two weeks. I post the weekly updates on my personal blog every Tuesday, where I also provide links to more obscure legal developments and otherwise discuss industry trends and stories. Please note, the views and opinions I express, both on BitBlog and my personal blog, are solely my own. They do not reflect the official stance or endorsement of my firm.
It was a quiet week in Web3 legal updates with no new major lawsuits brought by the SEC/CFTC/DOJ against a major industry player. Which makes me think there is something bad on the horizon. But in the meantime, there were developments in the Coinbase FOIA case, and the Ripple appeal is coming.
Here’s everything that happened last week in Web3 legal:
Other Stories
Coinbase Looking for Summary Judgment in FOIA Action: Coinbase has asked for permission to file for partial summary judgment in its pending FOIA action against the SEC. Part of its two prong attack along with discovery requests in the case the SEC brought against the digital token exchange.
SEC Lawsuits Coming: Many are predicting the Cumberland DRW lawsuit was a warning shot with more enforcement actions expected (Uniswap, Crypto.com, OpenSea, and Robinhood have all received Wells notices and those are just the ones made public). With Chair Gensler expected to be out regardless of who wins in November, it wouldn’t be shocking for him to leave a mess of enforcement actions on his way out.
a16z Releases State of Crypto Report: a16z has released their annual State of Crypto Report, and big findings are that use of crypto is at all time high based on monthly active wallets, with its key uses being in stablecoins and DeFi. Cool!
Gaming Company Sues Market Maker: Fracture Labs is suing Jump Trading and alleging that Jump Trading was contracted to serve as a market maker for Fracture’s gaming token only for Jump to turn around and pump and dump the token. Spicy. Gotta expect now that the SEC and DOJ have set their eyes on crypto market makers, others will be seeking their pound of flesh in private litigation.
FBI Arrests (alleged) SEC Hacker: The most shocking part of the SEC hack story isn’t that an agency that is trying to be the data security regulators of public companies got hacked, but that the hacker was in Alabama. The only explanation is that the hack did occur after Alabama lost in the college football playoffs, so I guess the alleged hacker had free time and some steam to blow off.
EigenLayer Official Twitter Hacked: The popular restaking platform EigenLayer’s social media was hacked, tweeting out a convincing fake airdrop claim link that would drain the wallets of anybody that connected. Reminder to never fomo from a wallet that has anything of value on it.
SEC Files Pre-Argument in Ripple Appeal: The SEC filed its required form in the Ripple litigation appeal (1 day late maybe?), stating the agency will be appealing the rulings regarding $XRP sales on secondary marketplaces and in-kind payments not being “sales” but not appealing that the token itself is not a security.
CFTC Files Appeal Brief in Election Predictions Case: The CFTC has filed its opening brief in the Kalshi federal election prediction markets case. While this case is important for crypto as many prediction markets are offshore and use stablecoins for payments, it is also equally important as one of the first cases post-Loper Bright regarding agency authority to reach the appellate level.
Crypto Voting Block Survey Released: The Digital Chamber has released its survey results regarding how crypto policies are set to shape upcoming federal elections. Nearly 1 in 3 Democrats and more than 1 in 4 Republicans say supporting the crypto industry should be either a “high” or “very high” priority. Politicians on both sides of the aisle should be motivated to end the current administrative state war on crypto.
Paxis Secures Half Billion in Financing: Not going to lie, I am still not certain of what Praxis is? Like, Galt’s Gulch for crypto or something? But a half billion in financing is nothing to sneeze at.
Think-Piece on SEC v. OpenSea: OpenSea hasn’t actually been sued yet, but when Rodrigo helps on a think piece, you know it will be worth reading.
Breakdown of Stablecoin Bills: Now that there are stablecoin bills in both the House and Senate, it’s a great chance to get caught up on those bills since there is a non-zero chance of that legislation passing this year.
Conclusion
If you have any questions or would like me to write about anything else, let me know on Twitter (X?) or Warpcast. As always, I am an attorney, I am not your attorney. For legal advice, you should always consult (and pay for) an attorney.
The NFTtorney 