Senator Lummis probes US federal law enforcement about Bitcoin sale  

Australia’s financial regulator will seek the High Court’s permission to appeal a lower court’s ruling favoring fintech firm Block Earner, which found the company’s crypto-linked fixed-yield earning service is not a financial product.The Australian Securities and Investment Commission (ASIC) said on May 21 that it wants to ask the High Court of Australia to clarify what the definition of a financial product is and clarify the circumstances when an interest-earning product and conversion of assets from one form to another are regulated.“The definition of financial product was drafted in a broad and technology-neutral way, and ASIC believes it is in the public interest to clarify this,” the watchdog said.“This clarification is important as it applies to all financial products and services whether they involve crypto-assets or not.”On April 22, Federal Court Justices David O’Callaghan, Wendy Abraham and Catherine Button found that Block Earner’s crypto-linked fixed-yield earning product is not a financial product, a managed investment scheme or a derivative under the Corporations Act.ASIC said the court will consider its application. Special leave is required in an appeal to the High Court, and it’s only granted in cases where it would answer significant legal questions or matters of public interest.A Block Earner spokesperson told Cointelegraph the matter has now escalated to a “broader legal question” around the definition of a financial product, which extends “well beyond Block Earner, and the crypto sector.” “We believe the Full Federal Court’s April ruling was a strong and well-reasoned decision that upheld the integrity of our operations,” the spokesperson said. “We remain confident in the soundness of that judgment and will respond to ASIC’s application through the appropriate legal channels.” Legal saga ongoing since 2022ASIC first launched legal proceedings against Block Earner in November 2022, arguing the company needed a financial services license to offer its yield product which was available from March 17, 2022, until the company shut it down on Nov. 16, 2022.Related: Australia outlines crypto regulation plan, promises action on debankingASIC was arguing Block Earner needed a financial services license to offer its crypto-linked fixed-yield earning product. Source: ASICIn February 2024, an Australian court initially ruled the fintech firm would need a financial services license to operate its crypto yield-bearing products. Another June 2024 ruling in Australia’s Federal Court released Block Earner from any financial penalties because it had “acted honestly” and pursued its legal opinions before launching the products, which ASIC appealed.Block Earner appealed the Federal Court’s decision that it needed a financial services license on July 9, 2024. Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Kristin Johnson of the US Commodity Futures Trading Commission (CFTC) has announced that she plans to depart the agency before 2026.In a May 21 notice, Johnson said she planned to step down from the CFTC “later this year,” having completed her term, which ended in April. The commissioner filling a Democratic seat at the financial regulator had served since March 2022 after being nominated by former President Joe Biden.In her farewell message, Johnson cited her work as a sponsor of the Market Risk Advisory Committee, which dealt with “nascent issues that arise with the introduction of decentralized financial products such as digital assets or cryptocurrency and other emerging markets.” CFTC Commissioner Kristin Johnson. Source: CFTCJohnson on XHer departure could come before US President Donald Trump nominates a replacement and has them confirmed by a Senate majority. Commissioners Summer Mersinger and Christy Goldsmith Romero previously said they would step down on May 30 and May 31, respectively, and acting CFTC Chair Caroline Pham said she planned to move “to the private sector” if Brian Quintenz were to be the next Senate-confirmed head of the agency.One position on the five-seat CFTC panel has been empty since the departure of former chair Rostin Behnam in February. Under CFTC guidelines, commissioners can continue to serve beyond the end of their terms until a “successor is appointed and has qualified,” provided it is before the next session of Congress.Related: KuCoin’s settlement with CFTC in flux after Trump policy shiftCFTC shakeup amid proposals for crypto market structureJohnson’s notice suggested that the entire leadership of one of the most significant financial regulators in the US could be replaced by Trump’s picks as early as 2026. The president nominated Quintenz to serve as CFTC chair in February, but the Senate had not moved for a vote to confirm him in more than three months. Along with the Securities and Exchange Commission (SEC), the CFTC has handled specific regulatory and enforcement issues related to digital assets. However, the lack of “clear rules of the road,” according to some lawmakers and industry leaders, has led to calls for a law establishing a digital asset market regulatory structure, clarifying the roles each agency would have to play.Magazine: SEC’s U-turn on crypto leaves key questions unanswered

A Democratic representative in the US Congress will support a blockchain bill at a time when many left-leaning lawmakers are blocking crypto-related pieces of legislation due to concerns with President Donald Trump’s potential conflicts of interest.In a May 21 notice, Minnesota Representative Tom Emmer said he had reintroduced the Blockchain Regulatory Certainty Act, a bill that “solidifies that digital asset developers and service providers that do not custody consumer funds are not money transmitters.”Emmer, a Republican, said Democratic Representative Ritchie Torres would co-lead the bill, making it a bipartisan effort in Congress.“The Blockchain Regulatory Certainty Act reflects a thoughtful, bipartisan effort to get digital asset policy right,” said Torres. “While similar language was voted down in markup last Congress, we took that feedback seriously and returned with a smarter, sharper framework that protects innovation without compromising oversight.”Reintroducing the Blockchain Regulatory Certainty Act on May 21. Source: Tom EmmerRepresentatives of advocacy organizations, including the Crypto Council for Innovation, Solana Policy Institute, Digital Chamber, Coin Center, DeFi Education Fund and Blockchain Association, said they would support the proposed blockchain regulatory bill. It was unclear whether Emmer and Torres had a majority of votes in the House of Representatives for the legislation to pass. Torres has supported many bills and policies favorable to the crypto industry since assuming office in 2021. Together with Emmer, he has led the Congressional Crypto Caucus to advance crypto-friendly policies in the House since March.A bipartisan blockchain bill amid memecoin concerns?Other Democratic House members, including Representative Maxine Waters, have suggested they intend to block any legislation related to crypto and blockchain until Republicans address Trump’s connections to the industry, such as his family’s stake in World Liberty Financial and his TRUMP memecoin. The president is planning to host a dinner with up to 220 people holding the most significant amounts of his memecoin on May 22.Related: Interest groups, lawmakers to protest Trump’s memecoin dinnerCointelegraph reached out to Torres’ office for comment but had not received a response at the time of publication.Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions