• Thu. May 30th, 2024

“SEC Cannot Be Held Back Against Crypto”, Opines Ex-Prosecutor



Sep 13, 2021

In the words of an ex-Federal Prosecutor, it is very unlikely that Securities & Exchange Commission of US (SEC) will let the crypto space be as it was and as it wants to be instead SEC will make sure that it would not be held back against regulating entire US crypto economy.

This could be so true because already SEC is in dispute with multiple cryptocurrencies as well as crypto firms, including Ripple Labs, and most recently threatening Coinbase against initiation of a lawsuit.

James K Filan had once served the Office of Attorney for the Connecticut District, US in the capacity of Federal Prosecutor. He spent almost nine years with the Attorney’s Office and played an instrumental role in settling some of the landmark cases. Filan had recently talked about the future of virtual currencies in the US with the perspective of SEC.

These days, Filan has been a practicing lawyer who is representing private litigants in the matters involving issues relating to investigations and securities. He commented that it is unlikely that SEC would allow American crypto industry to be “unregulated”.

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In fact, it would continue to keep striking at the very center of the crypto market until it takes over full control. The authority has hunger for supervising the crypto economy and this is why it has been developing disputes with cryptocurrencies and exchanges. The most notable dispute is the one which SEC has been fighting with the Ripple Labs i.e. the issuer of XRP.

According to Filan, those who think that Ripple dispute is one of its kind are completely wrong. SEC is going to turn its attention towards them as well. This is evident from the fact that very recently SEC was seen threatening the lead crypto firm namely Coinbase. These are literally intimidation tactics but this is happening and SEC is unstoppable.

Filan then talked about Coinbase and suggested that SEC is evidently overstepping. There is no problem with Coinbase’s lending scheme, even though it hasn’t been launched yet. However, SEC is threatening Coinbase on no commendable reasons at all probably it does not want Coinbase to launch the program.

It was on 7th September, 2021, when Coinbase revealed that it was sent a threatening notice by SEC. SEC claimed in the notice that Coinbase’s future lending scheme involves handling of “securities”. Surprisingly, not a single reason against this determination, was given in the notice nor thereafter.

However, the sending of threatening message reminded crypto community the events which resulted in initiation of lawsuit by SEC against Ripple. It was seen thereafter that a lawsuit was moved against Ripple Labs and its senior executives. The very structure of Ripple’s XRP was challenged by SEC which claimed it to be “securities”.

In the given scenario, Coinbase needs to be very careful and proactive.

By AevanStock – shutterstock.com


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