The development of cryptocurrency has not only led to the growth of a new industry, but it has also generated a great deal of litigation as well. Interestingly enough, most platforms represent their cryptocurrency as a “decentralized” and “unregulated.” However, the proliferation of recent court filings highly suggests otherwise.
In fact, cryptocurrencies are proving to be an item that can be regulated, and it mainly has to do with several features of currencies, including their potential for fraud and their investment quality.
Types of Cryptocurrency Litigation
Generally, cryptocurrency falls into one of two types of litigation – regulatory and civil proceedings. The regulatory litigation normally involves the securities and exchange commission and as a result, it is a proceeding instituted by a federal agency. When the SEC is involved, it may be because there are allegations that the cryptocurrency functions a lot like a security, which has its own highly-technical definition, and therefore, it should be regulated as such.
Additionally, if it is found that the cryptocurrency is a security, then it could be that it was used to defraud investors in some way. On the other hand, the other type of litigation is civil and it can be between an individual against the platform or a company against the platform. Civil litigation can involve a realm if issues.
Where to View Updates About Crypto Litigation
Those who are interested in learning about pending, ongoing, concluded, or suspended disputes concerning cryptocurrencies can do so on the web. Many firms that specialize in such litigation normally post litigation trackers that provide individuals with insight into the filing, the date of the filing, court, docket, and the cause of action. As things stand, individuals will mostly find cases involving regulatory violations.
If anything, the current litigation shows two things: first, cryptocurrencies are proving to be a regulated industry and second, they are becoming a budding topic for the courts.