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California judge rules DAO members liable under partnership laws

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A California judge has ruled that members of a decentralized autonomous organization (DAO) are liable under partnership laws, setting a significant legal precedent for the treatment of DAOs in the United States. The ruling comes as part of a lawsuit filed against the creators of a DAO that allegedly defrauded investors. In his decision, the judge stated that members of the DAO could be held personally responsible for the organization’s actions, treating the group as a partnership rather than an independent entity. This decision raises important questions about the legal status and liability of individuals involved in DAOs, which operate outside traditional corporate structures.

The case involved a group of investors who accused the DAO’s founders of misrepresenting the project and causing significant financial losses. The judge’s ruling, which applies partnership laws to the DAO, implies that members who have a stake in the organization could be held accountable for its obligations and debts. While DAOs are typically designed to be decentralized and operate without a central authority, the court found that the lack of clear legal distinctions left members vulnerable to personal liability, similar to individuals in a general partnership.

Legal experts have noted that this ruling could have broader implications for the burgeoning DAO sector, which has become increasingly popular in the cryptocurrency and blockchain space. DAOs, which often function through smart contracts and rely on token-based governance, have been largely unregulated and have operated in a gray area under current U.S. law. The ruling suggests that individuals participating in DAOs may not be fully protected from legal consequences, and it could prompt lawmakers to consider new legislation or regulations that specifically address the legal treatment of DAOs.

This decision marks a pivotal moment in the intersection of blockchain technology and traditional legal frameworks. As the popularity of DAOs continues to rise, this case may serve as a warning to members of similar organizations about the potential legal risks they face. The ruling could also encourage more clarity in the legal status of DAOs, as both participants and regulators seek clearer guidelines for managing decentralized projects within the existing legal structure.

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US lawmakers advance anti-CBDC bill

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U.S. lawmakers have voted to advance a bill aimed at blocking the Federal Reserve from issuing a central bank digital currency (CBDC), marking a major step in the political pushback against the development of a digital dollar.

The bill, which passed through the House Financial Services Committee, would prohibit the Fed from directly offering accounts or issuing a CBDC to individuals, citing concerns over surveillance, privacy, and government overreach.

Supporters of the legislation argue that a digital dollar could pose significant risks to civil liberties, enabling real-time tracking of consumer transactions and expanding federal control over personal finances. They view the bill as a safeguard against what they describe as a “surveillance-style” monetary system.

Opponents of the bill, however, argue that restricting CBDC development could hinder U.S. innovation and global competitiveness in the evolving digital financial landscape.

The legislation now moves closer to a potential floor vote in Congress. Its progress underscores growing ideological divisions over the future of money in the United States, with CBDCs emerging as a new front in the broader debate over digital governance, financial freedom, and the role of government in the digital age.

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Gemini to open Miami office after judge stays SEC case

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Crypto exchange Gemini has opened a new office in Miami, reinforcing its commitment to expanding operations despite pausing its plans for an initial public offering (IPO) amid a continuing legal battle with the U.S. Securities and Exchange Commission (SEC).

The Miami office signals the company’s long-term vision for growth in key U.S. markets, even as regulatory uncertainty clouds the broader crypto landscape. The expansion comes at a time when Gemini is facing heightened scrutiny from the SEC over its Earn program, which the regulator alleges involved unregistered securities.

While the IPO remains on hold, Gemini continues to strengthen its infrastructure and team, focusing on user growth, compliance, and regional outreach. The Miami hub is expected to play a strategic role in those efforts, leveraging the city’s growing status as a U.S. crypto hotspot.

Co-founders Cameron and Tyler Winklevoss remain vocal about the need for clear regulatory frameworks and have emphasized that Gemini will continue to fight for fair treatment while building responsibly in the U.S. and abroad.

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Coinbase Institutional files for XRP futures trading with CFTC

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Coinbase Institutional has officially filed with the U.S. Commodity Futures Trading Commission (CFTC) to offer XRP futures trading, marking a significant move toward expanding institutional access to Ripple’s native token.

The filing, submitted through Coinbase Derivatives, signals the exchange’s intent to list XRP futures contracts in a regulated environment. If approved, it would allow institutional investors to gain exposure to XRP through derivative products, a key step in broadening the token’s presence in traditional financial markets.

This development comes amid a gradually improving regulatory climate for XRP, following a partial legal victory for Ripple in its ongoing case with the U.S. Securities and Exchange Commission (SEC). The outcome gave XRP a degree of legal clarity, opening the door for exchanges and financial institutions to re-engage with the asset.

Coinbase’s push to expand its derivatives offerings also aligns with its strategy to build a more robust institutional platform. Approval from the CFTC would position the exchange to capitalize on growing demand for regulated crypto investment vehicles.

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