Unfortunately, the crypto world, but the SEC is not backing down from “mandatory regulation” | – #crypto #world #SEC #backing #mandatory #regulation
February 8 (Reuters) – I USA Against the Securities and Exchange Commission’s cryptocurrency targets court While I’m covering their struggles, the industry commission is one-time to set cryptocurrency regulation execution harshly criticized for taking measures. engage in formal rulemaking or Congress USArather than waiting for legislation clarifying when its securities laws apply to digital assets.
In the most recent example, both last year USA A onetime Coinbase Global Inc. executive accused of insider trading by the Justice Department as well as the SEC moved this week to dismiss the SEC’s complaint, claiming, among other things, that he had no knowledge. The Ethereum-based cryptocurrency tokens it trades will be defined as securities by the SEC. Former Coinbase employee Ishan Wahi pleaded guilty Tuesday to conspiracy to commit wire fraud, but even crime of work court At its meeting, Vahi insisted that the respective tokens are not securities.
“The only defining characteristic of the SEC’s approach to digital asset regulation is its ambiguity,” said Vahi’s defense attorneys, Jones Day, Greenberg Traurig and Harris St. Laurent & Wechsler filed the SEC’s lawsuit Monday against Vahi and his brother cancellation they claimed in their proposal to do.
Coinbase made it clear that the tokens Wahi and his brother traded were not securities, their attorneys said, and Congress did not tell cryptocurrency investors which digital coins could be regulated by the SEC. Currently, Vahi argued, cryptocurrency users are simply anticipating SEC enforcement — and that’s unsustainable.
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“At one point,” said Short, “the SEC execution Delphic’s strategy to uncover disposable securities with its measures must defy the legal system’s basic protections.”
The SEC thinks otherwise. The commission filed a declaratory ruling this week by a cryptocurrency law firm that the Ethereum blockchain network and its native cryptocurrency Ether are not securities under U.S. law. court Based on its filing, the SEC is in no rush to change its “Delphic strategy.” this made the crypto defendants very angry.
Hodl Law, which focuses on “legal services for digital assets and cryptocurrencies,” sued the SEC in San Diego federal court last November, alleging the SEC engaged in “years of purposeful delay and confusion.” to expand regulatory capabilities over cryptocurrencies. According to Hodl’s Law, this strategy did not give token holders fair warning about whether their coins were securities.
Hodl Law, citing the SEC’s Vahi lawsuit, argued that millions of Ethereum users, including a law firm, desperately needed a declaratory judgment that Ether was not a security and Ethereum transactions because the SEC refused to provide “concrete guidance.” not securities transactions. Otherwise, Hodl Law, the SEC of Ethereum users execution he said he had no idea he would deal with the move.
In Monday’s dismissal brief, the SEC argued to U.S. District Judge James Lorenz that because there was no live case or controversy between the Hodl Act and the commission, the law firm lacked constitutional standing and lacked jurisdiction. Under the Declaratory Judgment Act.
But that was not all. The SEC also said it does not have to notify cryptocurrency users about its interpretation of securities laws.
“The Hoddle Act did not assert that the SEC had an obligation to explain Hoddle Act rights under federal securities laws or promise not to prosecute it in the future, nor did it point to any statute imposing such an obligation.” The SEC said. “The gist of the complaint reflects only the Hodl Act’s desire for the SEC to promulgate regulations regarding crypto/digital assets.”
The law firm’s “general concern about the potential for an SEC investigation and speculation about the SEC’s views on crypto/digital assets” is not the reason for the action, the SEC said. Simply put, the commission argued that Hodl’s Law and all other Ethereum users will have to wait and see what the SEC does regardless of the commission’s decision.
Regardless of the strength of the SEC’s other arguments for dismissing the Hodl Act case, this position is bound to irritate the cryptocurrency industry.
The SEC declined to comment on the Wahi or Hodl case. Wahi adviser James Burnham of Jones Day declined to comment.
Hodl Law partner Frederick Rispoli via email from the SEC free The proposal to do so is “not forthcoming” about the many cases in which the commission “attacks digital asset users with after-the-fact enforcement actions,” he said. These cases, including the Vahi lawsuit, demonstrate the imminent threat Ethereum users face, according to Rispoli.
Several of the SEC’s targets, as you may recall, have tried to convince federal judges that the crypto assets at issue in their cases are U.S. Ali It does not meet the definition of a security under the Court’s 1946 test in SEC v. WJ Howey Co. As far as I know, none judge The SEC has not sided, including the federal one in New Hampshire judge, handed the commission a notable victory last November when it accepted the SEC’s theory that it expected cryptocurrency to use cryptocurrency. own coins to increase the overall value of the currency.
The next major test of the SEC’s cryptocurrency regulatory power is expected to come in its closely watched case against Ripple Labs Inc., where both sides have briefed U.S. District Judge Analisa Torres in Manhattan on dueling final judgment motions.
Wahi’s dismissal brief, filed Monday, presents many of the same arguments as Ripple’s summary judgment motion. However, the SEC provides the first sound explanation of an argument I expect to see more often in cryptocurrency cases: According to Revelation, SEC enforcement Ali It stands in the way of the Court’s recently articulated fundamental questions doctrine.
Wahi argues that the new doctrine, announced last June in West Virginia v. Environmental Protection Agency, allows the SEC to regulate the undiscovered crypto industry without any guidance from Congress. mandatory prevents him from using measures.
I doubt this argument will change the SEC’s mind. We’ll have to see if the judges get it.
Read more:
Former Coinbase executive pleads guilty in insider trading case
Until Ripple’s decision, the crypto industry won’t know the impact of the regulator’s victory over LBRY
USA Ali The ruling just gave federal agencies a big reason to worry
Reporting by Alison Frankel; Edited by Leigh Jones
Our standards: Thomson Reuters Trust Principles.
The opinions expressed are those of the author. These are Confidence It does not reflect the views of Reuters News, which is committed to its principles of integrity, independence and freedom from bias. Alison Frankel
2023-02-09 08:01:51
Source – reuters
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