French authorities to issue statement on Pavel Durov’s detention

The Federal Court of Australia has sided with fintech firm Block Earner in an appeal against a ruling that found it was required to hold a financial services license for its now-discontinued crypto-related products. Block Earner’s crypto-linked fixed-yield earning product is not a financial product, or a managed investment scheme, and is not a derivative under the Corporations Act, Justices David O’Callaghan, Wendy Abraham and Catherine Button said in an April 22 judgment. The trio said Block Earner’s yield product couldn’t be classed as an investment or financial product because users loaned crypto under fixed terms for interest payments and didn’t pool contributions to generate further benefits. The terms and conditions framed it as a loan, and users had no exposure to the firm’s business outside of the agreed interest rate, they added.A court has dismissed the legal proceedings against Block Earner and ordered Australia’s financial regulator to pay costs. Source: ASICThe Australian Securities and Investment Commission (ASIC), which first brought the case, has been ordered by the court to pay costs for the proceedings, including appeals. The regulator said in an April 22 press release that it is currently “considering this decision.”Block Earner’s chief commercial officer, James Coombes, told Cointelegraph the court decision brings clarity that crypto assets shouldn’t be treated differently from other asset classes when applying existing laws. “Our product was simply defined as one where customers would lend their assets to us for a fixed return, there was no share in the upside of the pool of assets and as such no Managed Investment Scheme existed,” he said. “The fact that it included crypto assets should not alter that simple definition, and I believe this case forms a bedrock for ambitious brands around Australia to build from.”An ASIC spokesperson declined further comment.Earner product won’t make a return Despite the win in court, Block Earner will not be reviving its Earner product after axing it when legal proceedings began, but Coombes said that “crypto-backed loans products remain the core focus of the company.”“Regulation going forward is not an easy task, and we empathise with the regulators on this point,” Coombes added. “We hope a collaborative process can bring about positive change.” Related: Australia outlines crypto regulation plan, promises action on debankingASIC launched civil legal proceedings in November 2022, arguing that Block Earner needed an Australian Financial Services License to offer its three crypto-linked fixed-yield earning products.In February 2024, an Australian court initially found the fintech firm would need a financial services license to operate its crypto yield-bearing products. Another June 2024 ruling released Block Earner from any financial penalties because it had “acted honestly” and pursued its legal opinions before launching the products, which ASIC appealed.Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Former SEC Chair Jay Clayton confirmed that he has been appointed as the interim US Attorney for the Southern District of New York after the Democratic Party’s Senate leader used a “blue slip” to block a vote confirming Clayton’s position.The appointment comes a little over five months after US President Donald Trump nominated Clayton to take on the role. He replaces Damian Williams, who played a major role in the conviction of former FTX CEO Sam Bankman-Fried and other high-profile crypto cases.Clayton said on April 22 his top priorities would be to protect public safety, ensure the integrity of the US financial system, defend national security interests and combat fraud, particularly against the elderly and most vulnerable.The temporary nature of Clayton’s appointment resulted from Democrat Senate Minority Leader Chuck Schumer’s use of a blue slip to block Clayton’s confirmation on April 16, effectively preventing a Senate vote and official confirmation of his position. Blue slips can be used by senators to block US attorney or district court judicial nominees in their home states. Clayton is allowed to serve as interim US attorney for up to 120 days without Senate confirmation. After that, he will need to be approved in a Senate vote or receive a temporary extension of his interim status from Manhattan’s federal court.Trump criticized Schumer’s move in an April 17 Truth Social post, pointing out that Clayton received bipartisan support in the Senate and that Clayton complied with all requests asked of him.Source: Donald TrumpThe interim status of Clayton’s position will last until around Aug. 20. The role will see him as the top law enforcement officer for New York’s Southern District, encompassing the counties of New York, Bronx, Westchester, Rockland, Putnam, Orange, Dutchess and Sullivan.The Southern District of New York is the oldest federal court district in the US, and its location in the country’s financial epicenter means it often handles high-profile cases involving white-collar crime.Clayton has shared mostly positive views on cryptoClayton served as SEC chair between May 4, 2017, and Dec. 23, 2020, and brought 56 cases against crypto firms during his tenure.Related: Oregon AG lawsuit against Coinbase calls XRP unregistered securityHe stated in a December 2021 CNBC interview that he’s a “huge believer in crypto technology,” adding that “the efficiency benefits in the financial system and otherwise from tokenization are immense.”Clayton has also praised Bitcoin (BTC) as a prominent store of value, but didn’t allow Bitcoin exchange-traded products during his time as SEC chair.The first US Bitcoin investment product was approved in 2021 under former SEC Chair Gary Gensler.Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set

US Securities and Exchange Commission member Hester Peirce, currently leading the agency’s crypto task force, offered a preview of what the industry could expect now that Paul Atkins has been sworn in as the regulatory body’s chairman.Speaking to Cointelegraph before the US Senate confirmed Atkins’ nomination and he took his position as SEC chair, Peirce said she welcomed the opportunity to work again with the incoming agency leader. Peirce worked as Atkins’ counsel from 2004 to 2008 during the then-commissioner’s first term at the SEC.“He cares about economic growth and how the markets that we regulate can support economic growth,” Peirce told Cointelegraph. “I would love the chance to work with [Atkins] on trying to reorient the agency so that it does take into consideration all aspects of our mission.”Related: Atkins becomes next SEC chair: What’s next for the crypto industryAtkins, appointed by US President Donald Trump in what many saw as a nod to the crypto industry to replace former chair Gary Gensler, was sworn in on April 21. During his confirmation hearing in the Senate Banking Committee, lawmakers questioned Atkins on his ties to the crypto industry, potentially presenting conflicts of interest in his role helping regulate digital assets. “I expect that he will continue to follow the ethics rules,” said Peirce on Atkins. “I worked for [him] and I have very high regard for his integrity.” SEC’s priorities under new leadership Atkins, now chair, comes to the SEC as the fourth commissioner, with five members typically filling the agency’s leadership positions. Gensler and former Commissioner Jaime Lizárraga stepped down in January. Commissioner Caroline Crenshaw is expected to be the next to depart before 2026, leaving a panel of only three Republican commissioners unless Trump nominates a Democrat.Commissioner Mark Uyeda, whom Trump named as acting chair on Jan. 20, was still scheduled to oversee some of the SEC’s proceedings, including an April 25 roundtable event discussing crypto custody. Uyeda said on April 21 that he was planning to return to his “regular role” as a commissioner, suggesting that Atkins may soon assume all his responsibilities as chair. The shakeup in leadership comes amid many in the industry looking for clarity from the SEC, the courts, and lawmakers after Gensler’s departure. Under the former chair, many accused the SEC of enacting a “regulation by enforcement” approach to crypto, resulting in several high-profile lawsuits against firms including Coinbase, Ripple Labs, and Binance. Since January, the commission has dropped many of the cases.“I think we’re all trying to get to a good place, which is putting some clarity around crypto, some regulatory clarity,” said Peirce.Magazine: SEC’s U-turn on crypto leaves key questions unanswered