Supreme Court Encouraged to Approve Nvidia Investor Lawsuit Amid SEC Backing

Recent Updates in Cryptocurrency and AI Regulations

The landscape of cryptocurrency and artificial intelligence (AI) regulation is rapidly evolving, with significant developments in both sectors recently.

Investor Class-Action Lawsuit Against Nvidia

According to Cointelegraph, the United States Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) are urging the Supreme Court to approve a class-action lawsuit against Nvidia, which has been in the courts since 2018. The lawsuit alleges that Nvidia misrepresented sales figures to cryptocurrency miners.

On October 2, US Solicitor General Elizabeth Prelogar and SEC senior lawyer Theodore Weiman filed an amicus brief asserting that the lawsuit has sufficient grounds to continue and should not be dismissed by the district court. This development could set a precedent for how tech companies are held accountable regarding their financial disclosures related to cryptocurrency.

European Union Develops AI Code of Practice

In another significant move, on September 30, the European Union announced the development of its first 'General-Purpose AI Code of Practice' under the AI Act. This initiative, spearheaded by the European AI Office, will gather insights from hundreds of experts in academia, industry, and civil society.

Key areas of focus in the draft include:

• Transparency
• Risk assessment
• Internal governance
• Copyright concerns

The finalized Code of Practice is expected to be completed by April 2025, following extensive discussions involving nearly 1,000 participants.

Ripple Labs Continues Legal Battle with the SEC

In the world of cryptocurrency, Ripple Labs CEO Brad Garlinghouse has committed to continue fighting against the SEC after the regulator announced plans to appeal a recent district court ruling in their case. Garlinghouse publicly criticized the SEC, stating that they have 'lost on everything that matters.'

He emphasized that the determination of XRP as a non-security is currently backed by existing law and reassured stakeholders that this status will remain intact despite the SEC's intentions to appeal.

Kalshi Granted Approval for Election Derivatives

In a groundbreaking ruling, a US federal appeals court has given Kalshi, a derivatives exchange, the green light to list event contracts tied to the outcomes of US elections, despite regulatory pushback. The decision by the US Court of Appeals for the District of Columbia Circuit on October 2 paves the way for election prediction markets to operate legally within the US.

This ruling has significant implications for platforms such as Polymarket, a crypto-related prediction market that had over $1 billion in bets on the outcome of the upcoming presidential elections as of October 2.

Conclusion

The developments in these sectors highlight the dynamic nature of regulation surrounding technology and finance. As these cases evolve, they will undoubtedly shape the future landscape of cryptocurrency laws and AI practices worldwide.