Courts and Crypto: A Growing Alliance
Grayscale’s recent legal victory over the US Securities and Exchange Commission (SEC) has stirred up conversations about the future of Bitcoin, even reaching the attention of potential candidates for the upcoming 2024 U.S. Presidential Election. One such candidate, Vivek Ramaswamy, a prominent conservative businessperson, has clarified his bullish stance on Bitcoin, pointing to the court’s decision to validate his scepticism toward the government’s control.
A Presidential Candidate’s Bullish Stand
Ramaswamy’s view is grounded in his concerns about the unchecked power of what he refers to as the “shadow government” in Washington. He asserts that this hidden influence is operating without appropriate restraint. To him, federal courts serve as the ultimate defence against the “unlawful rogue actions” perpetrated by government agencies characterised by their acronyms. The ruling in the Grayscale case further solidified his stance.
Taking to Twitter on Wednesday, Ramaswamy stated, “This decision is strong and clears a path to keep Bitcoin and blockchain innovation in the U.S. instead of overseas. But this should have never reached the courts in the first place.”
At the heart of Grayscale’s lawsuit against the SEC lies the accusation that the agency approved other Bitcoin-related products, such as future ETFs, without valid grounds for rejecting spot Bitcoin ETFs. Ramaswamy’s observations resonate with recent court decisions favouring the cryptocurrency sector. Notably, the judicial system branded the SEC’s dismissal of Grayscale’s ETF as “arbitrary and capricious.” In another instance, the court ruled in favour of Ripple, asserting that XRP does not qualify as a security.
These viewpoints echo sentiments from leaders within the cryptocurrency industry, who have expressed reservations about the SEC’s approach of “regulation by enforcement.” This approach, they warn, might drive crypto businesses and innovators to seek friendlier jurisdictions abroad, thus hampering the U.S.’s potential as a hub for innovation.
Similar perspectives are shared by a group of Republican congressmen advocating for cryptocurrencies. Some have gone so far as to call for the removal of SEC Chairman Gary Gensler from his position. One representative even likened Gensler’s actions to an “incompetent cop on the beat,” potentially driving the crypto industry toward countries like China.
Emphasising regulatory clarity, Ramaswamy and exchanges like Coinbase highlight the need for a clear regulatory framework. His vocal support for Bitcoin was evident during Bitcoin 2023, where he criticised the Biden administration’s attempts to impose a 30% excise tax on Bitcoin miners and expressed his disapproval of Central Bank Digital Currencies (CBDCs).
As Grayscale’s victory continues to reverberate, it becomes evident that the cryptocurrency landscape is shifting. With leaders like Ramaswamy advocating for innovation and regulatory clarity, the future of Bitcoin in the United States appears both promising and transformative.
