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Third Circuit Court of Appeals Orders Independent Investigation for FTX

The recent ruling by the Third Circuit Court of Appeals regarding FTX's need for an independent investigation marks a significant development in the ongoing legal proceedings. The decision to overturn the previous ruling by a Delaware bankruptcy judge highlights the importance of transparency and impartiality in such cases. Let's delve into the key points surrounding this ruling: Key Points: The Third Circuit Court of Appeals has mandated that FTX undergo an independent investigation to uncover industry practices. The court deemed the investigation led by FTX's current CEO as insufficient, underscoring the necessity for an unbiased probe. The Bankruptcy Code requires the appointment of an examiner for cases where the debtor's debts exceed $5 million, a criterion that FTX meets. This ruling underscores the critical role of independent oversight in ensuring fairness and accountability in bankruptcy proceedings. By requiring FTX to undergo an independent investigati

French National Assembly Passes Sorare Law: A Game-Changer for Crypto Games and NFTs

On Tuesday, the French National Assembly made a significant move in the world of video games by passing the Sorare law. This law is part of the broader Digital Space Regulation Law (SREN) and introduces the first regulatory framework specifically designed for video games that utilize NFTs and crypto-powered monetization schemes. The Sorare law, also known as the Jonum regime, aims to strike a balance between fostering innovation among French startups and ensuring user protection. With 437 members voting in favor of its adoption and 77 members voting against it, this legislation has the potential to pave the way for a new regulatory framework tailored to crypto games.

Defining Jonum and Legitimizing the Crypto Gaming Sector

One of the key aspects of the Sorare law is the legal definition it provides for Jonum, which refers to games with monetizable digital objects. This is a significant step forward as it establishes a clear and distinct regulatory framework for crypto games, setting them apart from both traditional video games and gambling. This distinction is crucial in legitimizing the crypto gaming sector, which has experienced rapid growth but has also been plagued by scams in recent years.

Karima Lachgar, the CEO and head of group legal and regulatory strategy at Olky Wallet, believes that the passage of this law could contribute to the legitimization of the sector. Lachgar stated, "Now, the text must undergo examination by the Constitutional Council, which has the authority to review and potentially reject it, something several deputies are still hoping for." It is important to note that opponents of the law have raised concerns about preferential treatment for crypto games over online casinos. If these concerns are valid, Lachgar even suggested that gambling platforms may be inclined to enter the play-to-earn and Web3 sector, similar to PMU (Pari Mutuel Urbain), the state-controlled betting system that has already entered the crypto space with its fantasy horse racing game, Stables.

Awaiting Examination by the Constitutional Council

While the passage of the Sorare law in the French National Assembly is a significant step, it is not the final stage in the process. The law must now undergo examination by the Constitutional Council, which has the authority to review and potentially reject it. According to reports from Les Echos, several deputies are still hoping for the law to be rejected, citing concerns about preferential treatment for crypto games. This examination by the Constitutional Council will play a crucial role in determining the future of the Jonum regime.

A Positive Development for the Crypto Gaming Industry

If the Sorare law successfully passes the examination by the Constitutional Council, it would be a positive development for the local crypto gaming industry. French regulators had previously stated that the assets used in crypto games meet three of the four criteria for defining a game of chance and gambling: public offering, financial stake, and the presence of a random element. The establishment of a dedicated regulatory framework for crypto games would provide clarity and stability for the sector, encouraging further growth and innovation while also ensuring user protection.

In conclusion, the passage of the Sorare law in the French National Assembly marks a significant step towards establishing a regulatory framework for video games utilizing NFTs and crypto-powered monetization schemes. The Jonum regime, as it is known, defines and distinguishes crypto games from traditional video games and gambling, potentially legitimizing the sector. However, the law must still undergo examination by the Constitutional Council, which will have the authority to review and potentially reject it. If the law successfully passes this examination, it would be a positive development for the local crypto gaming industry, providing stability and encouraging further growth and innovation.

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