Are The SEC is Sanctions Unnecessary?

U.S. regulators, particularly the Securities and Exchange Commission (SEC), are at odds with the crypto industry and crypto companies. The SEC is primarily concerned with whether crypto companies are registered and whether they advertise securities. However, many major crypto industry participants complain about fines imposed by the SEC under the guise of regulation.

The Cryptocurrency Community Blames The SEC

The SEC has been increasing its penalties against crypto companies since 2023, and this time it is accusing Coinbase of not properly classifying its assets as securities.

As we know, the SEC had accused Coinbase employees of insider trading. However, this accusation was also directed at the SEC.

The U.S.-based Chamber of Digital Commerce argued in an expert witness statement the previous day that the case should be dismissed because it reflects the expansion of the SEC’s enforcement campaign to classify secondary market transactions as securities transactions.

“This case reflects a secretive, dramatic and unprecedented attempt to expand the SEC’s jurisdiction and undermines the viability of the U.S. digital asset market,” said Perianne Boring, founder and CEO of the Chamber of Digital Commerce.

Are The SEC is Sanctions Unnecessary?

Is The SEC Abusing Its Authority?

According to the Chamber, Congress has not authorized the SEC to intervene in the digital asset market, and previous Supreme Court decisions have established that regulators must first be authorized by Congress.

The Chamber also pointed out that the SEC has taken many steps without congressional authorization, resulting in a more unstable enforcement environment.

In its statement, the Chamber referenced the case of LBRY v. SEC, in which the judge ruled that secondary market transactions are not securities transactions.

The latest opinion followed a similar motion filed Feb. 13 by the Blockchain Association, which claimed that the SEC had exceeded its authority in this regard.

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Ana Costa

I am resourceful and passionate about taking on whatever task lies ahead of me. I thrive in workplaces that promote diversity and inclusivity, whether it is working in journalism or being in the first place of global progressive social movements. I'm a journalist with a keen interest in reporting on daily global economic, finance, and crypto news. I have a deep understanding of how financial markets and global economies work, and I'm passionate about covering the latest developments in the world of cryptocurrency. I believe that the intersection of finance and technology is where the most exciting stories can be found, and I'm committed to staying up-to-date with the latest trends and emerging technologies in these areas. With years of experience in reporting and a strong network of sources, I strive to provide my readers with insightful and accurate coverage of the topics that matter most. Whether it's a breaking news story, an in-depth analysis of market trends, or an interview with a leading industry expert, I'm always ready to tackle the next big story and deliver it to my audience in a clear and engaging way. I focus on social media marketing, digital marketing, and market research. My strengths lie in creative marketing plans, collaboration with team members, and an eye for rising trends in different target markets.

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