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Former Liberal candidate Lesley Hughes pens her version of what happened to her in 2008 when she was accused of being an antisemite

Lesley Hughes
cover of “The Dead Candidate’s Report”

By BERNIE BELLAN How many times are we going to revisit a story that has already received more than ample coverage within the pages of this newspaper – especially a story which one might have thought had been put to rest long ago?

The answer, in the case of Lesley Hughes, who achieved a level of notoriety in 2008 when she was unceremoniously turfed as the Liberal candidate in the federal riding of Kildonan-St. Paul during that year’s election, is: at least one more time.

The reason is that Hughes has just recently published a short book, titled “The Dead Candidate’s Report”, in which she offers her version of the events surrounding her forced exit as the federal Liberal candidate for the riding of Kildonan-St. Paul during the 2008 election, and the ensuing damage, both to her career as a journalist and her personal life as a result of that forced exit.
Looking back over our past coverage of the Hughes story, I see that we’ve run three previous articles about what happened: In July 1, 2009, we ran a story by Myron Love which I titled “Hughes Sues Jews”, in which Myron reported that “Last fall, Federal Liberal hopeful Lesley Hughes generated national headlines when it was revealed that she wrote an article in the Winnipeg Sun on May 5, 2002, alleging that the Israeli, American, German and Russian intelligence agencies all had advance warning of the Al Qaeda attack on the World Trade Centre on September 11, 2001.”
(Ed. note: Hughes’ exact words, with reference to advance Israeli knowledge of the attacks, were: “Israeli businesses, which had offices in the Towers, vacated the premises a week before the attacks, breaking their lease to do it. About 3,000 Americans working there were not so lucky.”
In that article, Hughes indicated she was quoting internet journalist Mike Ruppert who, she notes in her recently published book, “The Dead Candidate’s Report”, “claimed to have two independent sources about the move” but whose “sources were sealed forever when he allegedly committed suicide in 2014.”
In her book, Hughes admits that “a later explanation for the move was that the existing firm had decided to leave months earlier, breaking their lease as a routine cost of business.”)

Myron’s 2009 article went on to note that Hughes “also posted the article on a United Church of Canada website.
“As a result of the revelation, the former CBC broadcaster (she co-hosted the CBC Winnipeg morning show for a number of years) was forced to step down as the Liberal candidate for Kildonan-St. Paul. (She ran as an independent in the October election and finished a distant third.)
“Now Hughes is back in the news with a lawsuit she has filed against federal cabinet minister Peter Kent, the Canadian Jewish Congress and B’nai Brith Canada, as well as Frank Dimant, BBC’s executive vice-president, CJC co-presidents Rabbi Reuven Bulka and Sylvain Abitbol, and Bernie Farber, the CJC’s former CEO.
“Hughes filed the suit in Manitoba Court of Queen’s Bench on June 16. She alleges that the defendants ‘made untrue and defamatory accusations’ that she is anti-Semitic. She charges that senior members of B’nai Brith and the CJC went to see then Liberal leader Stephane Dion on September 25, with her 2002 article and persuaded Dion to drop her as a candidate on the grounds that she was anti-Semitic and ‘unfit to hold public office.
“In her lawsuit, she quotes a press release issued on September 27 by B’nai Brith’s Dimant in which he charges that Hughes has a ‘record of anti-Semitism’.”

In February 2013 Myron reported on a settlement reached between Hughes and the defendants to her lawsuit:
“This past week it was revealed that Hughes reached out-of-court settlements with the parties to her lawsuits.
“Following is an excerpt from a publication of joint statement issued by the parties concerned:
“ ‘Journalist Lesley Hughes, Canadian Jewish Congress, B’nai Brith Canada and Peter Kent MP (Thornhill) wish to clarify comments that each made during the 2008 Federal Election campaign regarding an article written by Lesley Hughes in 2002, in which she re-published statements that made presumptions of an anti-Semitic nature in connection with the September 11, 2001 attacks on the World Trade Centre.
‘Ms. Hughes was dismissed as a Liberal candidate in the election after the 2002 article was raised in the media.
‘During the election Canadian Jewish Congress, B’nai Brith Canada and Peter Kent each raised concerns about statements in the 2002 article which repeated false allegations that Israel or Israeli tenants were forewarned of the 9/11 attacks on the World Trade Center and did not warn others. Comments made by Canadian Jewish Congress, B’nai Brith Canada and Peter Kent were published in the media and Ms. Hughes filed a defamation claim in respect of the comments.
‘Canadian Jewish Congress, B’nai Brith Canada, and Peter Kent accept that Ms. Hughes does not condone the use of anti-Semitic conspiracy theories by racist groups to support anti-Semitism of any nature. They therefore acknowledge and agree that Ms. Hughes is not an anti-Semite. In fact, Ms. Hughes has been an advocate of human rights through three decades as a journalist and teacher.
‘Ms. Hughes confirms that she has and will continue to be a strong supporter of the work of any individual or group who exposes false public statements that might do harm to the Jewish community, and more specifically that are anti-Semitic and racist.
‘Ms. Hughes joins with Canadian Jewish Congress, B’nai Brith Canada, and Peter Kent in strongly condemning anti-Semitic conspiracy theories. They find anti-Semitism and all forms of racism, to be deeply contemptible behavior.’ “

Then, in December 2015, in that year’s Chanukah issue we reprinted an excerpt from a forthcoming book by Hughes, in which she offered further background to the story. Hughes had contacted us, asking whether we would run the story verbatim, including this headline: “An Enemy of the Jews”. We agreed to that and ran the story in its entirety (It ran over five different pages. You can still read the entire story on our website. Simply enter the names “Lesley Hughes” in our search engine and you will find the entire December 9, 2015 issue in which Hughes’ piece appears.)

Now, all this may seem like quite a long preamble to a book review, but I thought it necessary to put what follows into a certain context. Given that Lesley Hughes has been adamant in protesting her innocence over the charge that she was anti-Semitic – and I have no doubt of the unfairness of that charge, given the fact that we have bent over backwards to treat her fairly within this newspaper, I wonder if there really is any further need to comment on a story that has gone on for so long.
But, when we ran a story in our last issue about another defamation lawsuit that had also been settled and in which B’nai Brith had been named as a defendant, I thought the juxtaposition of the two cases reflects poorly on B’nai Brith Canada – and its occasional willingness to engage in over the top criticism.

The most recent case had to do with an article B’nai Brith had published about former Green Party candidate (and more recently, a contestant for the party’s leadership), Dimitri Lascaris.
(I should also note that in September 2018 I did an interview with Dimitri Lascaris which can still be accessed on Youtube, although I admit it’s not easy to find. As much as Lascaris is decidedly critical of Israeli policies toward Palestinians, by no means would I describe him as “an advocate on behalf of terrorists”, which is what B’nai Brith did.)
The reason I thought it important to note that B’nai Brith has now settled lawsuits with two different individuals who had filed libel lawsuits against the organization is that it illustrates the danger involved in labeling someone either “anti-Semitic”, as was B’nai Brith’s allegation about Hughes, or “an advocate on behalf of terrorists”, as was the case with B’nai Brith’s allegation about Lascaris.
Regardless what one may have thought about what Lesley Hughes had written in the particular article which ended up causing her so much grief, or what Dimitri Lascaris’s record is with regard to criticizing Israel, one should be very careful when it comes to accusing individuals either of being “anti-Semitic” or “advocates on behalf of terrorists”, especially when those individuals are Canadian citizens and have recourse to the courts here.

With all that in mind, is there anything new in Lesley Hughes’ recently published book,
“The Dead Candidate’s Report”, which is a very short read at only 107 pages (including appendices)?

On the website for her book, Hughes describes it as “a memoir of my 2008 run for parliament, my defamation as an anti-semite and conspiracy monger, and the lawsuit that cleared me of all accusations”. Unfortunately, due to the terms of the settlement agreement reached between Hughes and the defendants to her lawsuit, she is not allowed to discuss the terms of settlement.
What she does discuss, at great length, is the devastating consequences that her being forced to withdraw as the Liberal candidate for Kildonan-St. Paul had, both on her personal life and career – when she was shunned by many of her former colleagues in the media, along with many other individuals with whom she had developed relationships over her many years as a commentator and radio host, including many Jewish friends.

Leaving aside the mistake Hughes may have made in repeating a since debunked claim that Israelis had prior knowledge of the attack on the World Trade Centre, what followed was certainly devastating for Hughes.
Even when she was vindicated in a court of law and the defendants to her lawsuit apologized for having labeled her an antisemite, as she was about to discover, news of the defendants’ apologies and retractions of the charge was generally ignored within the mainstream media.
As Hughes writes, “When confronted by personal and professional devastation in 2008, at least I was able to turn to an overpriced, self-serving legal system. I have won back my reputation, by way of a lawsuit, but there is no remedy for the unyielding non-coverage of my vindication. No consequences. No accountability. No more action to be taken.”

For Lesley Hughes, at least, while the lessons she may have learned about the dangers inherent in taking any sort of a controversial position in public may have been salutary indeed, what does her experience have to say about anyone else who may be contemplating entering into politics – or who may already be involved in politics?
I certainly wouldn’t be the first to point out the dangers that exist for just about anyone who may have ever tweeted or posted to Facebook anything the least bit controversial. In 2016 this paper itself played an instrumental role in raising awareness of overtly anti-Semitic tweets that had been posted by a doctor by the name of Hussam Azzam, and which had been scrubbed from his Twitter feed – but not before someone who had been monitoring Azzam’s tweets had taken screenshots of them – and ended up giving me those screenshots.
Subsequently Assam was fired as the Chief Medical Officer at St. Boniface Hospital.

So, I’m well aware of the power even a small newspaper such as this can have in affecting the careers – and ultimately the lives, of individuals. In Lesley Hughes’ case, the likelihood is that her controversial columns about 9/11 conspiracies might well have gone ignored for the most part (although she does acknowledge that a column which she wrote for two Winnipeg weekly newspapers in 2002 about 9/11 in which she suggested that the United States brought about the attacks upon itself by its past behaviour did elicit some very angry responses from a great many readers of those papers), had she not inserted a suggestion that Israelis had foreknowledge of the attacks on the World Trade Centre, she would probably have been allowed to remain a Liberal candidate in 2008.
It was only because a blogger (whom she doesn’t identify in her book, but whom we identified as “The Black Rod”, a very well known blogger here who has a record of important scoops over the years) decided, in 2008, to publicize an article Hughes had written in 2002, that Hughes’ was cast into political and personal purgatory.

And, as we have just seen in the most recent federal election, it doesn’t take all that much to have candidates forced to remove themselves as candidates for political office. I think in particular of an NDP candidate by the name of Dan Osborne who, as a teenager tweeted at Oprah Winfrey (of all people), “was Auschwitz a real place?”
Who knows what the context was for that seemingly silly question, but let’s be honest: Is asking that question, especially by a young person who may simply be ignorant, in and of itself anti-Semitic or is it perhaps simply an indication of ignorance on the questioner’s part? But, as I’m sure Lesley Hughes can explain to Mr. Osborne: You can’t be too careful these days in posting anything that might potentially be used some day to cause great embarrassment to you. And, once you’ve been shamed in public, there’s no getting back your reputation, no matter all the apologies and retractions you might end up receiving.

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Do we treat our Arabs better or worse than the Tsars treated us?

Jewish farmer in Pale of Settlement 1800s/Arab farmers on the West Bank

By MARTY GREEN I know many Jews will be outraged at the very notion of comparing the two. “The pogroms!”, I hear you cry. “The Naqba!”, the Arabs might just as well respond. We all have our own simplified narratives regarding the rights and wrongs of the past; but just as the true story of Arab life in Israel is much more complicated than the Naqba, so the story of Jewish life is Russia was, for better and for worse, much more nuanced than the mere fact of the pogroms.

There are some obvious parallels between our respective stories. We came to be the authority over several million Arabs as an unwelcome by-product of our great victory in 1967. Similarly, Russia inherited some half million Jewish subjects over the course of the three partitions of Poland (1772-1795). We were hardly more welcome to the Tsars than the Arabs were to us. We sometimes mock the “genocide” allegations by pointing out how 1.2 million Palestinian Arabs in 1945 now claim to number over 14 million. But we were no pikers by comparison: in the course of the 19th century, our numbers in Russia grew anywhere from ten- to twenty-fold.

We remember how the Russian government quickly instituted the Pale of Settlement, restricting our mobility. Can the Arabs under Israeli rule not complain of similar or worse restrictions? It is true that we have obvious security concerns regarding the mobility of a hostile population. The checkpoint system has almost certainly saved lives. But by the same token, can we be sure that the Russians had no valid reason to worry about the loyalty of their Jewish subjects?

There can be little doubt that in the First World War, many Jews hoped that the German invaders would liberate them from their Russian oppressors. And even before the German invasion, as a large minority group speaking their own language and having close connections with their co-religionists in foreign not-always-friendly countries, surely the Russians had as good reason to be concerned with our loyalty as we have with regard to our Arabs?

(Incidentally, it is said that the Jews of 1812 might have whole-heartedly thrown in their lot with the invading Grand Armee, if not for the unlucky resemblance of the French Emperor’s name with the Yiddish word mapole (meaning “defeat”). But that is a tale for an alternate version of history.)

Finally, we remember well how Jews in Russia were not allowed to own land; the truth is, we mis-remember that “fact” because we did indeed own land, and when challenged our title was upheld in the Russian courts. Similarly, in the Occupied Territories the validity of Arab land titles under Ottoman Law are rigorously protected by the Israeli courts. Nevertheless, some residents of the Jordan Valley may argue that it is less than “rigorously” enforced on the actual ground.

Which brings us to the subject at hand. Because back in Old Russia, in der alter heim, disputes between us and our Gentile neighbors over land ownership and usage were an ongoing feature of life for centuries. For a somewhat poetic description of the nature of these conflicts, I turn to the words of memoirist Falek Zolf (1898-1962), who recalls this about his youth in the shtetl of Zastavia, a village of several hundred on the outskirts of Kamenetz-Litovsk. To preserve a bit of the flavor of the original, I have transcribed Zolf’s narrative here in a mix of English and Yiddish.

“The village led a poor, quiet life. We lived from what God gave us; this one from a manual trade, this one from farming, another from buying and selling, and so forth. A few dozen families pulled in a meager livelihood from working in Asher Guterman’s brewery, which was known throughout the region for its beer. Outside of that, almost everyone had his own garden and his own cow – most likely one which he had raised himself from a calf. You could always rent a small patch from one of the landowners who lived in the Gentile quarter; the vegetables and produce could be sold in the neighboring towns and villages: in Brisk, Kobrin, Orleh, Bialovezh, etc.

“Quiet and peaceful was the flow of life in the stäedtele. It was truly mit’n schwéiss vun sein ponim (by the sweat of his brow) that each one earned his own piece of bread, along with the vegetables which the good Mother Earth provided to everyone in full measure.”

Of course we all know that Jewish life in Russia was not quite so idyllic as Zolf makes it out to be in the preceding passage. Let us see what comes next:

“The stäedtele of Zastavia was at one time, according to the stories of the old men, entirely a Jewish peasant-village. The whole surrounding area with its fields, gardens, and hills had once belonged to Jews, who were originally men of the soil. But little by little, for a number of reasons, the Yiddische erd had passed over into Gentile hands. If a Jewish peasant needed to make a shidukh for his daughter, he might be driven to sell a strip of farmland to a Gentile; and with the money, he could put on a proper khasseneh with all the sheva brokhos. If his son didn’t want to go serve the Russian Tsar and had to run off azh ken Amerikeh, the Jew would once again cut off a piece of land and sell it to a neighboring Goy (to pay the 300-rouble penalty). If his grown children went off to seek happiness somewhere in the far-away, and the elderly parents simply didn’t have the koyakhto go out and push the plow, then the last stückel feld would be sold to the local meshtchan, and with the money they could enjoy the few years remaining to them. And so with time, the Yiddische erdfell largely into Goyische händt.

“In the end, all that remained to us was a large vihon, a communal grazing-field, which according to legend had once belonged to a rich Jewish landowner, who had donated it to the stäedtel. In the end, the Yiddische beheymos had actually been forced to share this pasture with Goyische khazerim. It was painful for us to have to watch those khazerim turning our Jewish vihon into a pigsty, but there was little choice; one was, after all, living in golus.”

Perhaps we should pause here to consider that while the Jews seem to have sold much of their land to the Russians due to economic pressure, there are nowadays, for obvious reasons, only the rarest cases of Arabs selling their lands to Jews. Furthermore, I am not aware of any situations where the Bedouins of the Jordan Valley willingly share their grazing land with the Jews of the hilltop outposts. Whether these differences are to our credit or theirs is not for me to say here.

In any case, we will see further that it was not only economic or social pressures which came into play:

“Unfortunately, the more the Goyischer Gass (the Gentile Quarter) grew at the expense of the Yiddischer Gass, the more brash and the more khutzpah-digker they became. They started to look for any pretext or opportunity to snatch away this last remaining piece of Jewish grazing land, so that not a single Yiddische beheymah should have a place to roam. They would sometimes show up armed with sticks, hoes, and pitchforks, ready to start a milkhomah….”

Sound familiar?

“….but on such occasions, the ZastavierYidden, who were in those days no pushovers, would quickly arm themselves with the implements of ha-yadayim y’dei Eysav and go forth to meet the Gentile foe. Blood would flow from both sides. For the Jews, it was a matter of kidush ha-shem, a case of milkheymes mitzvah, to uphold their Yiddischen koved and also to save and protect the Yiddische beheymah-lach from Goyische händt…”

And of course, in such situations, the Russians would call in local gendarmeria or even the dreaded Cossacks, and the Jews would be quickly dispersed, arrested, or even beaten.

Or were they….?

Perhaps not. Let us see how Zolf describes it:

“Fortunately, these little milkhomos would not last for long. The storm would quickly die down, and the stäedtel would soon go back to its normal, peaceful life, as though nothing had happened.”

And with those words does Zolf conclude his fond reminiscences of his childhood years. But of course that is not the end of the story.

We all know the devastation brought by the Second World War. But in the wake of the Holocaust, we are liable to forget the enormous impact of the First World War on the Jewish world. The collapse of empires was followed by the emergence of new, ideologically-driven regimes which. It is hard to say whether Communist Russia or nationalist Poland was more hostile to the Jews. In any case, Zolf’s village found itself on the Polish side of the border. And the Jewish way of life quickly became economically untenable.

Among the first the measures adopted under the Polish national slogan of “swój do swego“…that the Gentile should only patronize “his own people”….was the establishment of Christian cooperatives, so that the Polish peasants would not see their hard-earned money fall into the hands of Jewish intermediaries. Then there was the nationalization of entire industries like wine, alcohol and tobacco…again, with the purpose not so much of the betterment of the working class as the impoverishment of the Jewish merchant class. Then the strict enforcement of the Sunday laws, so that the observant Jewish shop-keeper would have to close down for two days of the week. Finally, the imposition of a host of new taxes, of which Zolf reels off the names: gruntovi, dokhodovi, handelyovi, obratov… (ed. Note: would be nice to get the correct Polish spellins of these)

The bailiff’s wagon, which quickly made it’s appearance in one Jewish community after another to haul away confiscated goods in lieu of unpaid taxes, was given the nickname “Grabsky’s Aguleh (hearse)”, after the infamous finance minister Grabsky, a notorious anti-semite. And in Warsaw, it was said to have been followed all to often by another kind of aguleh, this one from the khesed shel emes, to collect the bodies of bankrupt Jewish merchants who had thrown themselves from a fifth-story window.

The precarious condition of the Jewish staedtel could hardly go un-noticed by the local peasantry, and before long they had renewed their ambition to take over the last remaining grazing-field, the communal vihon, and make it once and for all Juden-rein. In Old Russia, the Jews had been ready to defend themselves with clubs and pitchforks; and interestingly enough, Zolf records that they had even sought and obtained recourse from the Russian courts:

“Back then the städtel had engaged the services of berühmte advokaten (famous lawyers) who fought the case azh in der gubernieh un in Petersburg. The protzess dragged on for years, until the Jews were able to secure once and for all séier recht zu mägen paschen séiere beheymos auf’n kehill’schen vihon, inéinem mit die Goyische khazerim.

Yes, there was now and then justice available to the Jews from the Russian courts. We sometimes forget that Mendel Beyliss was aquitted by an all-Christian jury. In this regard, it is noteworthy that the Arab villagers in the Jordan Valley have also been able to obtain favorable judgments from the Israeli courts on occasion.

But in post-war Poland, things were not the same. The villagers knew that in the course of the war and the fires that had destroyed Zolf’s shtetl, the Jews had lost the papers which gave them the right to to an equal share of the communal lands. In addition, the shtetl had been seriously weakened by the war, the Spanish Flu, and emigration to America. The end was in sight to one and all.

And so one bright summer morning, the Catholic and Orthodox peasants (who otherwise had little affection for one another) herded their flocks into the communal vihon. Zolf describes what happened next. One doesn’t need to understand word for word to get the general picture. Sadly, the same story seems to be repeating itself today in the Jordan Valley: only the roles have been changed:

“Their field-hands let loose the dogs auf die Yiddische beheymos, and drove them weit in a sumpign winkel. The Jewish cattle had to spend the rest of that day versunken in der tiefer blotte, searching in vain for a green stalk mit wâs zu stillen séier hunger, un nischt gekönnt gefinnen. Late that afternoon, they were led home, tired, hungry, and covered with mud. Locked away in their barns, they gnawed at the walls. Séiere hungerige geschreien hâben sich weit getrâgen über’n stäedtel.

“And in the pitiful cries of their hungry animals, hâben die Yidden gehört a min trauerign shoyphar-blâsen, which announced the end, not only for their teuere, liebe beheymellach, from whom they had derived at least a stückel khayunah…but also the end vun séier alt-eingesessene Yiddischen stäedtel.”

Falik Zolf left Poland in 1926 and became a Yiddish teacher in Winnipeg’s I.L. Peretz Folks-Schule. He published his memoir in 1948 under the title “Auf Fremder Erd” (On Foreign Soil).

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Embracing your femininity in Cheshvan

By ELENA KNIGHT Rosh Chodesh Sameach! Though last month’s article (Embracing your femininity in Tishrei) had far more holidays, thus more material, the month of Cheshvan is not as empty as it appears. It may contain no holidays or mitzvot specific to the month, but I take issue with the idea that Cheshvan is “bitter”.
Some people refer to this month as MarCheshvan, Mar meaning bitter, but Mar can also refer to a drop of water; this month is the beginning of Israel’s rainy season! We began praying for rain with Shemini Atzeret last month, so by this time, G-d has usually heard Am Yisrael and started sending rain to the Holy Land. To connect this to womanhood, let’s revisit last month’s article, where I explained the connection of water to femininity.
In Tishrei, I spoke of the divine feminine, and how rain is associated with the womb of creation, fertility, and gentle, life-renewing power. In Cheshvan, however, I’d like to focus more on feminist reclamation of water metaphors; in Margaret Atwood’s The Penelopiad , for example, when trying to protect herself from unwanted suitors, Penelope recalls her mother’s advice: “Behave like water… Don’t try to oppose them. When they try to grasp you, slip through their fingers. Flow around them.” We can take this literary advice and put it into practice in our lives this month. When in a position where we feel powerless, and in spaces where female assertion is unwelcome, we could do well to be like water. Nobody can hold water in the palms of their hands without losing control of it. Water is not easy to contain. Nor are we women.
Taking Mar of MarCheshvan to mean a drop of water, rather than bitterness, can be interpreted now as a call to action. This month can be the time when we refuse to be controlled, much like the prophetess Miriam. In Torah, Miriam’s connection with water is clear; in Exodus 15, she takes the Israelite women out from the community to sing a song of deliverance through the Red Sea. She is with her brother, our teacher, Moses, when he is sent down the Nile in a reed basket, and she is the one who ensures he is cared for at the Pharaoh’s palace in Exodus 4. In many Pesach seders, a cup of water is set out for Miriam, like the wine for Elijah, because she ensured that the Israelites had water while travelling through the wilderness during the Exodus journey.
Miriam is, clearly, a passionate leader, creating a specific space for Israelite women when they are so often overlooked in Torah stories. By establishing her place as a role model for the Israelites leading up to their freedom from Egypt, the Torah makes it clear that G-d accepts female leadership. This month, let us take a page from Miriam’s book, and lead when we are called to do so. Like I suggested in my last article, mentoring a young girl in your community may be the perfect way to lead.
Cheshvan is also said to be reserved for the time of Moshiach. To prepare for the Moshiach’s arrival, we can act in ways that will bring about Israel’s reformation, both in the land itself and in the diaspora. By supporting charities both in our home communities and in Israel, by acting with chesed, loving-kindness, even when we don’t really feel like it, and by studying–whether that be studying Torah, feminist theory, or any other subject that will improve the world–with fervent passion. By working on tikkun olam, repairing the world, as we have it now, we can bring about a better world for future generations. What better way to remove the bitter reputation of Cheshvan?

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CFTC Crypto Regulation Plans Put XRP and Solana in Focus as CLARITY Act Stalls

moon.com

US crypto regulation is back in focus after the Commodity Futures Trading Commission opened a public consultation on October 5 on a potential framework for certain retail crypto transactions. With the CLARITY Act stalled in the Senate, the initiative raises questions about what the agency can achieve under existing law and why its plans matter for XRP and Solana.

For XRP and Solana, the development is particularly notable because US regulators have already identified both assets as examples of digital commodities. The emerging question is therefore not simply what happens to the CLARITY Act, but how far the CFTC can reshape the regulatory environment while the legislation remains stalled.

XRP and Solana price movements in focus

The XRP price and Solana price provide useful context for assessing market movements; comparing both assets over the same period helps distinguish their individual performance from broader changes across crypto markets.

XRP price movements and Solana price movements need to be assessed over a clearly defined period. An intraday range describes the distance between the session’s highest and lowest recorded prices; it does not establish which direction an asset will move next. A daily percentage change provides a different measure, comparing the latest price with a reference point.

Crypto market volatility can reflect changes in liquidity, interest rate expectations, network developments and broader risk appetite. The CFTC consultation adds regulatory context, but the announcement alone does not establish the cause of a particular price movement.

Why crypto regulation is shifting towards the CFTC

The Senate did not reach the 60-vote threshold required to advance the CLARITY Act in September. The result prevented the broader market-structure bill from moving ahead at that stage, but it did not end the push for clearer federal crypto rules.

The CFTC has now begun exploring another route. In its notice covering Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets, the agency is seeking public input on a framework for certain retail crypto transactions and the platforms offering them.

The distinction matters. The CLARITY Act would have established a statutory framework passed by Congress. The CFTC initiative instead relies on powers the agency says it already has under the Commodity Exchange Act.

That means agency action can proceed while the legislation remains unresolved, although it cannot replicate every part of the congressional proposal.

What the proposed CFTC crypto rules could cover

The process centres on two concepts known as Regulation CTX and Regulation CAM. Regulation CTX concerns retail commodity transactions involving crypto assets, including transactions financed through margin, leverage or other forms of credit.

Regulation CAM would examine a specialised category of CFTC-registered market designed for those transactions. The aim is to create a federal regulatory option with requirements more closely tailored to crypto markets.

The framework could address areas such as market manipulation, customer assets, conflicts of interest and market conduct. The agency is also considering what information platforms should provide and how existing market safeguards can be adapted to crypto.

There is an important limit. The CFTC cannot require all spot crypto exchanges to enter that federal regime without action from Congress. Its chairman has described the proposal as an option for firms rather than a nationwide mandate.

That difference helps explain why the CLARITY Act still matters even as regulators move independently.

Why XRP and Solana matter in the regulatory debate

The CFTC consultation brings renewed attention to how the existing federal crypto asset taxonomy relates to XRP and Solana.

In his October 5 remarks, CFTC Chairman Michael Selig pointed to the joint federal crypto asset taxonomy, which identifies Bitcoin, Ether, Solana, Stellar, Tezos and XRP among examples of digital commodities.

For XRP and Solana, that classification helps explain why a CFTC-led framework deserves attention. Both assets operate on widely used blockchain networks and have a presence across global crypto markets, so changes affecting how US platforms can offer crypto products could influence market access, liquidity and institutional participation.

It does not mean the new rules would determine their prices. Interest rates, network activity, broader risk appetite and asset-specific developments remain important. Regulation is one part of the market environment, not a standalone price signal.

How crypto wagers relate to market movements

Crypto wagers based on market movements involve a bet on a specified outcome over a defined period. The relevant details include the asset, the condition that must be met, the closing time and the price source used to determine the result. Those terms matter because an asset can move in different directions within the same day.

Short-term price direction is also the basis for crypto wagers on Moon, a crypto betting platform where outcomes are tied to market movements.

For crypto betting, the significance of volatility depends on the wager’s conditions, including whether settlement uses a closing price or an event occurring during the specified period. A rise earlier in the day does not establish the outcome of a later wager, and a regulatory announcement does not guarantee a winning bet. An unsuccessful wager can result in the loss of the amount staked.

The connection between crypto wagers and market news therefore depends on the specific outcome and timeframe. News about XRP or Solana can provide context, while the terms of each wager determine how its result is settled.

How agency action differs from the CLARITY Act

The distinction between legislation and regulation is central to what happens next.

Congress can create new statutory powers and requirements that regulators cannot establish on their own. The CLARITY Act sought to define a broader market structure, including the responsibilities of federal agencies and obligations for intermediaries operating in digital asset markets.

The CFTC is working within authority it says already exists. That allows it to address some transaction structures and market protections but leaves wider questions for lawmakers.

The agency itself has acknowledged that regulatory action cannot indefinitely replace legislation. For markets, that creates a two-track process: regulators can develop rules under current law while Congress decides whether to revisit a broader statutory framework.

That makes the latest CFTC action more than a reaction to the failed Senate vote. It is also an indication of how US crypto policy could develop if Congress remains unable to reach agreement.

What US crypto regulation could mean for Canadian markets

The proposed CFTC framework would apply in the United States, not Canada. Its potential relevance for Canadian markets comes through cross-border capital flows, global liquidity and the role US platforms and institutions play in price discovery.

Canada also has established investment products linked directly to both assets. The Toronto Stock Exchange listed several Solana ETFs in April 2025, including the 3iQ Solana Staking ETF, giving Canadian investors regulated market exposure to SOL.

XRP followed with Canadian-listed products in June 2025, including the 3iQ XRP ETF.

That means regulatory developments affecting XRP and Solana in the United States can have relevance even when Canadian rules themselves do not change. Shifts in institutional participation, exchange access or global liquidity can still be reflected in assets and funds available in Canada.

Currency remains another consideration. Crypto assets are commonly quoted globally in US dollars, while Canadian investors may measure performance in Canadian dollars. Exchange-rate movements can therefore strengthen or reduce the local effect of a move in the underlying asset.

What comes next for the CFTC consultation and CLARITY Act

The CFTC consultation is now underway. The agency is seeking written comments on the Regulation CTX and Regulation CAM framework before deciding how subsequent rulemaking should proceed.

Congress could also return to the CLARITY Act or another version of market-structure legislation. The Senate result stopped the bill from advancing at that point, rather than resolving the broader regulatory debate.

For XRP and Solana, the most important signal is therefore no longer a single Senate vote. Attention has moved to whether the CFTC can turn its proposals into workable federal rules, how crypto platforms respond and whether lawmakers eventually establish a broader framework.

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