Launchy Regulatory Roundup #25 - CFTC Crypto Forum & SEC Task Force Launch

Law Firms Slam Pump.fun IP Abuse | Pilot for Stablecoin as Collateral

Marco Manoppo & Muhammad Reynaldi Ariananda Arkiang
February 09, 2025

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Good Morning.

Welcome to our 25th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

Good Morning,

Regulators are busy rethinking the rules, convening top industry players to decode everything from stablecoin protocols to token registration. This isn’t just bureaucratic tinkering, it’s a strategic pivot away from hasty crackdowns toward a more measured, collaborative approach.

In Today's Edition:

Headline: CFTC Crypto Forum & SEC Task Force Launch 🔎
Global Legal Roundup: Stablecoin Bills & Pilot for Stablecoin as Collateral 🇺🇲
Case Study: Law Firms Slam Pump.fun IP Abuse 🥊

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HEADLINE

CFTC Crypto Forum & SEC Task Force Launch

Mark Uyeda / Coindesk

State of play: The CFTC has announced a forum where crypto industry CEOs will provide input on an upcoming digital asset pilot program focused on tokenized non-cash collateral, such as stablecoins.

Acting CFTC Chairman Caroline Pham hailed the initiative as groundbreaking and aligned with the Trump administration's pro-crypto agenda.
The forum will include leaders from Circle, Coinbase, Crypto.com, and Ripple.

Meanwhile, Acting SEC Chair Mark Uyeda has named three key figures to lead the agency’s new Crypto Task Force—a move that signals a shift from the previous enforcement-heavy approach. The appointees include:

Landon Zinda – Former Coin Center policy director, now serving as senior advisor.
Richard Gabbert – Former counsel to Commissioner Hester Pierce, appointed as chief of staff and senior advisor.
Taylor Asher – Previously a senior policy advisor to Uyeda, now the chief policy advisor.

The task force aims to develop a clear, comprehensive regulatory framework for crypto assets. SEC Commissioner Hester Peirce also outlined 10 priorities for the task force. Key goals include:

Clarifying the distinctions between securities and commodities.
Creating more practical token registration processes, and determining the regulatory scope over crypto-lending, staking, and other market activities.
All with the intent of fostering innovation while ensuring robust investor protections.

What’s Next: Both agencies are expected to roll out detailed proposals in the coming months. The CFTC forum and SEC task force could soon provide clearer guidelines on token classification, registration processes, and the overall regulatory landscape

Why it Matters: These initiatives mark a strategic shift from reactive enforcement to proactive engagement with industry stakeholders.

Our Take: While the move towards clarity is encouraging, the inherent complexity of rulemaking means that meaningful changes may take time to materialize. Nonetheless, setting a robust regulatory foundation is crucial for stability and mainstream adoption.

GLOBAL LEGAL ROUNDUP

America:

🇺🇲 SEC seeks more time to mull options on Ethereum ETFs
🇺🇲 Coinbase to face lawsuit over unregistered securities sales.
🇺🇲 Grayscale files to list its Litecoin Trust as ETP on NYSE Arca.
🇺🇲 Crypto's debanking worries hit another big stage in US House.
🇺🇲 SEC acknowledges Grayscale Solana ETF filing in ‘notable’ step.
🇺🇲 US lawmakers propose stablecoin bill to boost dollar dominance.
🇺🇲 Tornado Cash dev Alexey Pertsev released to prepare for appeal.
🇺🇲 US regulator pursuing tokenization pilot to tap stablecoins as collateral.
🇺🇲 Utah passed its digital assets bill; 18 states are pursuing similar measures.
🇨🇦 Canadian regulator excludes crypto funds from reduced margin eligibility.

Europe:

🇨🇿 Czech Republic to eliminate taxes on long-term crypto gains.
🇸🇪 Swedish digital asset manager launches AVAX, ADA ETP on Nasdaq Helsinki.

APAC:

🇭🇰 Hong Kong doubles down on crypto regulation with staff hires.
🇯🇵 Japan asks Apple, Google to remove unregistered crypto exchange apps.

CASE STUDY

Law Firms Slam Pump.fun IP Abuse Amid Insider Gains Allegation

FOR IMMEDIATE RELEASE
Burwick Law and Wolf Popper LLP Demand Baton Corp. DBA, PumpFun Immediately Remove Tokens Deployed On The Solana Blockchain By Pumpfun That Utilize Unlicensed Intellectual Property In An Effort to Impersonate Our Law Firms, And Remove The Likeness Of Any… x.com/i/web/status/1…
— Burwick Law (@BurwickLaw)
7:30 PM • Feb 5, 2025

State of play: Burwick Law and Wolf Popper have issued a cease and desist letter to Pump.fun, demanding the removal of over 200 tokens—including DOGSHIT2—for allegedly misusing their intellectual property.

The law firms claim these tokens, launched after a recent class-action lawsuit, expose the public to significant financial and legal risks, yet Pump.fun has not acted despite having the technical means to remove them.

John Arnold M.D. (@consensualcex) has intensified the controversy by alleging that a $1,000 bet turning into $520,000 in minutes hints at insider involvement, potentially implicating law firm employees or even Max Burwick himself.

Arnold notes that several wallets quickly amassed over $100K, raising serious questions about who profited from DOGSHIT2.
He also criticizes Dexscreener for abruptly censoring the DOGSHIT2 page, blocking links and community takeovers, while routinely promoting tokens that infringe on major brands' IP.

While Burwick Law maintains that DOGSHIT2 was created merely to demonstrate the ease of launching tokens on Pump.fun, these developments have sparked widespread calls for a full investigation into potential insider manipulation and selective censorship.

Our Take: Beyond the insider trading and pump-and-dump issues, platforms like Pump.fun bear a clear obligation to protect intellectual property, much like YouTube safeguards its creators' content.

Yet in the meme-driven world of crypto, where humour and homage often blur the lines, the boundaries of IP rights become murky, complicating efforts to distinguish between genuine infringement and creative expression.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

Jake Chervinsky’s thread on crypto policy & the markets.
Alex Thorn’s summary of SEC’s future approach to crypto.
Nathan McCauley’s testimony in the US Senate on the impacts of debanking.

People who bought Ethereum 5 years ago
— naiive (@naiivememe)
1:02 PM • Feb 8, 2025

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.