Do Kwon, co-founder of Terraform Labs, is facing potential changes in his charges due to legislation being considered in the US Congress.
Kwon's Court Situation
Do Kwon, facing criminal charges in a US federal court, is discussing his case in a status conference involving his lawyers and prosecutors. Judge Paul Engelmayer noted that he is 'mindful of the GENIUS Act,' suggesting it could impact Kwon's securities fraud charges.
The GENIUS Act and Its Impact
The GENIUS Act, passed by the US Senate, targets regulations for payment stablecoins. It is anticipated that this will influence Kwon's charges related to the TerraUSD algorithmic stablecoin and the LUNA token. These developments arise amid the 2022 depegging of UST, which contributed to the ecosystem's crash and subsequent criminal charges against Kwon and other executives.
Future of Stablecoin Legislation
The stablecoin legislation, including the GENIUS Act, is currently under consideration in the US Congress. It is worth noting that such bills may affect how US financial regulators like the SEC and CFTC address digital asset-related cases.
The complex situation surrounding Do Kwon continues to unfold amid legislative changes that may significantly affect his charges and proceedings.
