The case against Terraform Labs co-founder Do Kwon may be affected by legislative developments in the U.S., with the judge noting potential influences from a new stablecoin bill.
The Legal Proceedings and the GENIUS Act
During a hearing in Manhattan federal court, Judge Paul Engelmayer pointed out that the new stablecoin bill, known as the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), could impact Kwon's case. The bill has passed the Senate and is awaiting a vote in the House of Representatives.
Background on Do Kwon
Do Kwon faces multiple felony charges in the U.S. related to the collapse of the Terra ecosystem. He was arrested in Montenegro in March 2023 on passport forgery charges and subsequently extradited to the U.S. The charges allege that he used 'manipulative and deceptive techniques' to mislead investors and regulators.
Future of Crypto Regulation in the U.S.
Currently, discussions around cryptocurrency regulation are intensifying in the U.S. In addition to the GENIUS Act, the STABLE Act, which focuses on transparency and oversight for stablecoins, is also under review. Any legislation passed could influence how agencies enforce regulations on digital assets.
The case against Do Kwon exemplifies the growing interest in stablecoin regulation and its potential repercussions for developers and investors in the cryptocurrency industry.
