In a recent development that will set the stage for a battle concerning cryptocurrency regulation, United States Senators Cynthia Lummis and Ron Wyden have penned a letter to Attorney General Merrick Garland, expressing their apprehensions regarding the Justice Department’s (DOJ) interpretation of money transmission licensing.

The letter, signed by both senators, raises concerns over the DOJ’s application of money transmission laws in the case against Roman Storm, the co-founder of crypto mixer Tornado Cash. Storm faces charges related to operating an unlicensed money transmission operation, among other serious allegations.

Central to the senators’ concerns is the discrepancy between the DOJ’s interpretation and established definitions outlined by the Bank Secrecy Act and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). According to Lummis and Wyden, non-custodial crypto service providers, like Tornado Cash, do not meet the criteria set forth in these definitions.

The senators argue that bitcoins and other cryptocurrencies have a clear, unilateral owner throughout the transaction process, eliminating any ambiguity regarding ownership. They assert that custody and control are the fundamental factors determining the occurrence of “acceptance and transmission” on crypto networks.

Highlighting FinCEN’s role as the primary interpretive authority on money transmission registration requirements, the senators caution against the DOJ’s broad application of its interpretation. They warn that such an approach could extend regulatory scrutiny to a wide array of services, including internet service providers and even the postal service.

Echoing similar sentiments, crypto advocacy groups filed a joint amicus brief in April with the Southern New York District Court, supporting Storm’s position. Storm’s legal team filed a motion to dismiss the charges in March, arguing that Tornado Cash did not meet the definition of a money transmission business.

However, prosecutors contend that Storm bears responsibility for operating Tornado Cash and allege that the service facilitated criminal activities. They accuse Storm of designing software that aided criminality and assert that Tornado Cash was involved in the transmission of funds derived from criminal offenses.

Storm, who was arrested in August on charges of sanctions violations, facilitating money laundering, and unlicensed money transmission, faces up to 45 years in prison if convicted. He has pleaded not guilty to the charges and is currently out on $2 million bail with travel restrictions.

The letter from Senators Lummis and Wyden underscores the growing debate surrounding cryptocurrency regulation in the United States and the reach of the SEC, highlighting the need for clarity and consistency in interpreting existing laws in the rapidly evolving crypto landscape. Perhaps a new administration will see this and force a clear outline so that compliance can be adhered to clearly by all in the industry as opposed to it being a guessing game.

Terry Jones
Digital Assets Desk

The current cryptocurrency market is full of new coins, waiting to be explored by investors with full might. With the wave of new meme coins sweeping over the space, several meme coins are poised for a massive 200% surge, giving investors a chance to bask in lucrative returns and rewards. 

Here are the top three crypto tokens that the analysts predict will spike by 200% later this month. 

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Top 3 Coins That May Surge 200% This Month

Cryptocurrency #1: Pepe

Pepe has been forging its own independent price path lately. The token is projecting bullish signs by surging nearly 40% in the last month. Per CoinMarketcap, the token is up 0.56%, trading at $0.000008768. 

CoinCodex, a notable crypto analytics platform, predicts the token to spike by 200% this month, doubling investors’ profits and rewards. 

“According to our current Pepe Coin price prediction, the price of Pepe Coin is predicted to rise by 237.88% and reach $0.00003007 by June 12, 2024. Per our technical indicators, the current sentiment is bullish, while the Fear & Greed Index is showing 57 (greed). Pepe Coin recorded 19/30 (63%) green days with 18.18% price volatility over the last 30 days.”

The return of a social media legend has sparked a frenzy in the cryptocurrency world, with memecoins referencing him surging in value.

What Happened: Keith Gill, better known online as “Roaring Kitty,” was a key figure in the 2021 meme stock rally, targeting companies like GameStop GME with his online activity.

After a long hiatus, Gill’s return to social media sent shockwaves through the financial world, with a new cryptocurrency named after Roaring Kitty (ROAR) seeing a staggering 1400% increase according to CoinGecko data.

This particular coin, despite having no affiliation with the company, capitalized on the hype surrounding Gill’s return.

Gill’s return wasn’t just felt in the world of traditional finance.

The meme coin market, known for its volatility and ties to social media trends, responded with a surge in memecoins referencing both Gill and GameStop.

These meme coins, easily created and traded, can experience massive price fluctuations due to their small size and limited availability.

One such memecoin, simply called GME/USD is currently valued at $0.010.

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Why It Matters: The demand for meme coins has been steadily rising since late February, as investors flush with cash from established cryptocurrencies like Bitcoin and Ether look for new opportunities.

This trend mirrors the events of early 2021, when meme coins like Dogecoin DOGE/USD skyrocketed in value after endorsements from celebrities like Elon Musk.

The enthusiasm over Roaring Kitty was palpable on social media, with Twitter user Mike Schmidt commenting, “Imagine fading a Roaring Kitty coin on the biggest shitter chain during a cat szn with the GME legend back as the main character. Man this is fuckin hilarious.”

Similarly, the official wallstreetbets Twitter account shared, “My life savings is in the hands of a man that calls himself Roaring Kitty and I could not be more comfortable .”

Crypto enthusiasts and traders are keenly observing these developments.

According to Gaut, Roaring Kitty gained nearly 200,000 followers shortly after his post, suggesting a strong market reaction.

This sentiment was echoed by Size Chad, who linked the event to increased trading volumes on Robinhood, noting their partnership with Arbitrum.

Furthermore, Crypto Tea highlighted the broader implications of such movements, tweeting, “Roaring kitty posts a meme and $1 billion gets liquidated. Future of finance.”

These events demonstrate the growing intersection between cryptocurrency and traditional financial markets, driven largely by community engagement and speculation.

What’s Next: As the community gears up for the Benzinga’s Future of Digital Assets event on Nov. 19, these developments will likely be a hot topic.

The event will delve into how digital assets are reshaping finance, influenced by social media and community-driven investment trends. Discussions will also cover the regulatory landscape that is struggling to keep pace with these rapid changes, ensuring a comprehensive dialogue on the future of finance in the era of meme stocks and cryptocurrencies.

Read Next: Why Grayscale Could Be The Spark ETH Needs: 10x Research

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