France Comments on SEC’s Faltering Litigation Strategy

The Securities and Exchange Commission (SEC) of the United States has been under scrutiny for its litigation strategy, which some critics describe as stuttering. The latest commentary on this issue comes from an unexpected source – France.

France Comments on SEC’s Faltering Litigation Strategy

The French authorities have expressed their views on the SEC’s approach, marking a significant international interest in the matter.

France is emerging as a significant player in the crypto landscape, with companies like Binance choosing to operate under the country’s existing crypto legislation, PACTE, overseen by the AMF. In a landmark move, the AMF granted its inaugural crypto license to Forge, the fintech division of Societe Generale. This rigorous process aligns Forge closely with MiCA, demonstrating the country’s commitment to crypto regulation.

The SEC’s litigation strategy has been a topic of discussion not only within the United States but also internationally. The French authorities’ comments highlight the global interest in the SEC’s approach to litigation. The French authorities have not been shy about expressing their views, adding a new dimension to the ongoing debate.

France’s Take on the Matter

Despite the challenges of high taxes, employment restrictions, and limited venture capital investment, France offers unique advantages, particularly in regulatory certainty. This is exemplified by Ledger, one of the country’s crypto success stories. Éric Larchevêque, Ledger’s former CEO, highlighted that Ledger’s foundational technology, the smart card, is a French innovation, demonstrating the country’s technological prowess.

France is now looking to extend its regulatory success to Web3-style games involving monetizable digital objects, known by the French acronym JONUM. These are tradable items that confer rights within the game and can increase in value through gameplay. If lawmakers agree on a framework in the fall, a “text by the end of the year” could be possible, according to Isabelle Falque Pierrotin, chair of France’s National Gambling Authority (ANJ).

In Conclusion

In May, French Web3 company Sorare made changes to its NFT soccer game for the domestic market under regulatory pressure. However, these changes are seen as a temporary solution until legislative changes are enacted. If implemented, these new gaming laws could significantly impact the industry.

Matthieu Lucchesi, an innovation and fintech specialist at law firm Gide255, believes that the proposed regime shows a “true will and a true possibility of positioning France as the real pioneer and leader on this topic,” provided the law is “well-calibrated” to be attractive.