In the world of cryptocurrencies, there are two separate yet equally important groups: the innovators, who create and promote new decentralized forms of payment, and the regulators, who are supposed to ensure fairness and security.

These are their stories.

Welcome to a Law & Order-themed edition of Crypto Roundup.

And no, we’re not just doing this because watching daytime reruns of the classic show was one of my favorite pastimes in between classes in college. It’s because we’ve been covering a lot of legal proceedings in the crypto world lately. And the BIG one started this week.

That’s right, I’m talking about the SBF trial.

We won’t cover every excruciating detail (there are plenty of outlets for that already). But we will give you the highlights and all the other crypto news you can use.

Cue the theme music: “Dun-Dun… Da-da-da-da-da-Duuuun…”

Let’s dive in.

⚖️The SBF Trial: Week 1 Drama

The crypto courtroom drama featuring Sam Bankman-Fried (SBF), the boy-wonder behind FTX, is unfolding this week. Not only is every major media outlet covering it to some extent, but some (the Wall Street Journal and CoinDesk) are devoting entire podcasts to the proceedings.

With week one under wraps, it’s already proving juicier than anticipated.

But first, some background.

Who’s SBF?: Sam Bankman-Fried, known as SBF, isn’t just any name in the crypto world. He founded FTX, a cryptocurrency exchange that quickly became a major player in the industry thanks to its innovative trading products and a once-glistening reputation. It also helps that SBF, the son of politically connected academics, became one of Washington’s most prominent political donors.

The Rise and Fall of FTX: Under SBF’s leadership, FTX was hailed as a market leader in the crypto space. It also benefited from some aggressive marketing, with endorsements from Tom Brady, supermodel Gisele Bündchen, and comedian Larry David. It also became the official cryptocurrency exchange for Major League Baseball and secured the naming rights to the Miami Heat’s home arena (FTX Arena).

FTX’s unexpected collapse sent shockwaves through the crypto community, with many questioning how such a prominent platform could falter so dramatically. Many users found their accounts drained, leading to widespread outrage and calls for stricter regulations.

📂 The Case Unfolds

The DOJ came out swinging this week, accusing SBF of misleading investors about FTX’s true financial state. Their claim? SBF saw the liquidity crisis looming but chose to play it cool, leaving many investors high and dry.

But SBF’s defense is shifting the blame. They’re pointing fingers at Caroline Ellison, a former FTX exec. According to them, Ellison was the real culprit, orchestrating a series of misguided decisions behind the scenes while keeping SBF in the dark.

Ellison is the former CEO of Alameda Research. Founded by SBF, the trading firm was revealed to owe $10 billion to FTX, according to the Wall Street Journal. The source said FTX had lent the trading firm money from customer funds at FTX (it was also rumored that Ellison and SBF were involved in a relationship).

The defense alleges Ellison, once named a Forbes 30 Under 30 member, made a series of high-risk trades that jeopardized the platform’s liquidity. (The ol’ blame it on the girlfriend routine. Classic.)

Why It Matters 🤔

That’s just the opening salvos. There was more testimony from former FTX executives against SBF, too. For more detailed information, I’ve particularly enjoyed the coverage of the Wall Street Journal and CoinDesk.

Someday, there will be a movie or miniseries about all this. But beyond the courtroom theatrics, the outcome of this trial has broader implications. It could shape the future relationship between crypto platforms, their users, and regulators. It also raises serious questions about our fascination with “boy genius” figures in the tech world, which may lead the media, Washington, and the public to turn a blind eye.

The stakes are high in this one. As the Wall Street Journal points out, “a loss could raise broad questions about the Justice Department’s ability to police new financial markets.” We’ll be watching closely. Stay tuned.

💬 RFK Jr. Weighs In On Bitcoin, CBDCs, And More

In case you haven’t heard, RFK Jr. is mounting an insurgent primary challenge against President Biden for the Democratic nomination for President. Over the years, the Kennedy heir has been a prominent environmental advocate and vaccine skeptic – and has recently gained attention for his controversial views.

This week, he sat down with Bitcoin Magazine’s Editor in Chief, Mark Goodwin, for an interview. And it’s worth covering what he had to say. While RFK may not have a shot at the nomination, fringe candidates (if they gain enough momentum) can push the Overton window in American political discourse.

Here are some crypto-related highlights:

• Bitcoin and Financial Freedom: RFK says his growing interest in Bitcoin resulted from the Canadian government’s actions during the Ottawa trucker protests. Individuals had their bank accounts closed without due process (a topic we’ve touched on before). He expressed his intention to protect Bitcoin and even considered backing the U.S. dollar with cryptocurrencies and other hard assets as an alternative to fiat currency.
• Central Bank Digital Currencies (CBDCs): RFK approached CBDCs with skepticism. He voiced concerns that they could become tools of control, potentially eliminating cash currencies and giving governments complete oversight of individuals’ financial transactions.
• Future of the U.S. Dollar: RFK highlighted the challenges posed by the rapid globalization of the dollar. He pointed out the emergence of alternative currencies offered by BRICs and other nations, which could threaten the dollar’s position as the world’s primary reserve currency.
• Implementing Bitcoin-friendly Policies: RFK intends to utilize executive orders and Treasury policy. This approach would allow him to enact changes without relying entirely on legislative action.

You can catch the full interview here. In summary, RFK seems to recognize the potential of digital currencies to offer an alternative to traditional fiat systems. And like many privacy advocates, he is wary of the control CBDCs might grant governments. Regardless of his overall platform, his openness to Bitcoin distinguishes him in the political arena. Who knows? Maybe he can push Biden or one of the Republican candidates to brush up on their crypto policy knowledge, too.

SEC (vs. Ripple): Denied! 🚫

Remember when we covered Ripple’s big win over the U.S. Securities and Exchange Commission (SEC)?

If not, here’s a refresher. Ripple, the company behind the third-largest cryptocurrency (XRP), has been in a tug-of-war with the SEC over whether its token is a security or a currency.

Flashback to July: District Judge Analisa Torres ruled that Ripple’s XRP sales to big-league institutional investors were a no-no. But selling XRP on exchanges like Coinbase? Totally fine. The SEC, obviously not thrilled, tried to appeal this decision.

Fast forward to now:

Motion denied! Judge Torres has given the SEC’s appeal motion the cold shoulder. And while XRP did a little celebratory jig with a 5% price bump, this ain’t over yet. The SEC, ever the fighter, is hinting at another appeal. And an all-out trial is set for April 2024.

As for comments from the Ripple camp and the SEC corner? It’s radio silence. 📻

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_{This article originally appeared on StreetAuthority.com.}