The UK government is considering a new legal category for crypto assets. The Law Commission’s latest report suggests reclassifying crypto assets as personal property to address current legal gaps and better protect digital assets.
On July 30, the Law Commission of England and Wales proposed creating a new category of personal property specifically for crypto assets.
Their supplemental report pointed out flaws in the current legal framework regarding crypto assets.
The commission suggested that a more flexible legal approach would help better recognize and protect digital assets by introducing this new property category.
New Legislation to enhance oversight of crypto transactions
On July 29, lawyers in the FTX class action case filed a motion against the law firm Sullivan & Cromwell (S&C), alleging the firm went beyond typical legal practices.
The lawyers accused S&C of actively helping the fraudulent activities of the failed cryptocurrency exchange, FTX.
In the court documents, they stated that S&C created “misleading strategies” that supported FTX’s misconduct.
The lawsuit seeks damages for various issues, including aiding fraud, breaches of fiduciary duty, and civil conspiracy.
On August 2, Senators Catherine Cortez Masto and Charles Grassley introduced a new bill to boost the Secret Service’s role in fighting crypto crime.
The “Combatting Money Laundering in Cyber Crime Act of 2024” would give the Secret Service the power to look into suspicious crypto transactions by unlicensed money transmitters and investigate fraud against U.S. financial institutions.
The bill aims to improve oversight of financial activities and enhance law enforcement’s ability to address these crimes.
On July 29, two artists challenged the SEC in court, seeking to understand if NFTs fall under its regulatory control.
The lawsuit aims to clarify whether creating and selling NFTs requires compliance with U.S. securities laws, including if artists need to register their works or disclose any associated risks.
