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Op-ed: Why the SEC should stay away from crypto (Part I)

Press Releases Crypto News CryptoSlate Op-ed: Why the SEC should stay away from crypto (Part I)

It is time for the U.S. to implement intelligent, progressive, and specific digital asset regulation.

The Securities and Exchange Commission’s recent charges against Coinbase and Binance have brought the debate on digital asset classification to a boiling point, and I believe it demonstrates that the organization is not equipped to regulate digital assets competently.

Included in the suits are lists of over 15 digital assets the SEC claims pass the Howey Test and are thus securities. In order to succeed in the suit, SEC Chair Gary Gensler told CNBC,

“All we have to show is that one of [the tokens listed by the exchanges] is a security and they should be properly registering.”

However, when reviewing the alleged securities listed by the exchanges, there is no mention of the black swan that was the Terra-Luna collapse (save for a passing reference in the Binance suit.) Binance currently still lists LUNA as well as the classic token LUNC, while Coinbase listed wrapped LUNA (wLUNA) and still has it available via the Coinbase Wallet. Terra Luna’s failure wiped out tens of billions of dollars from the crypto market cap and led to individual investors losing huge amounts of money.

The SEC also invokes tokens trading on FTX as part of their argument that Coinbase is in the wrong. In the lawsuit, the listing of SOL on FTX.US is presented as part of the evidence claiming that Solana is a security. An almost identical section is also included in the Binance suit.

At this point, it is well known that FTX and its executives had a very well-known presence on Capital Hill and that SBF and his cohorts established personal or working relationships with several members of the U.S. government, Gensler included. U.S. customers lost huge sums when that exchange failed, leaving more than a few members of the government with an embarrassing track record of having snuggled up to alleged fraudsters and the uncomfortable reality of having to disgorge themse

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Author: Liam ‘Akiba’ Wright

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