GENIUS Act Could Reshape Legal Battle over TerraUSD and LUNA Tokens

In the case involving Terraform Labs and its co-founder Do Hyeong Kwon, the defense has asked the Federal Court for the Southern District of New York to extend the deadline for pretrial filings by two weeks, pushing it beyond the original date of July 1, 2025.

The request aims to help both sides avoid unnecessary filings, a move supported by the prosecutor’s office.

Although Kwon’s legal team stated that they were prepared to meet the initial deadline, they believe the extension would be helpful given ongoing productive discussions between the parties. Importantly, this delay won’t impact other court schedules, with the trial still expected to begin on February 17, 2026.

The defense and prosecution have also agreed on a timeline for expert witness statements. The government will submit theirs by October 31, 2025, while the defense will follow with their reports by December 1, 2025.

READ MORE:

Whales Buy the Dip as Retail Panics: This Week in Crypto

In a recent hearing, Judge Paul Engelmayer mentioned the newly passed GENIUS Act could influence the case’s direction. The GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act, approved by the Senate on June 17, aims to regulate stablecoins used for payments.

Though the bill still awaits approval in the House of Representatives and the President’s signature, its passage might alter the legal framework surrounding the charges against Kwon, particularly concerning TerraUSD (UST) and the LUNA token.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.