Crypto sector calls for more regulatory clarity from the SEC
11:55, 29 July 2022
Pressure mounts on the US financial regulator, the Securities and Exchange Commission (SEC), to come forward with a clear framework around unregistered securities and digital assets. Crypto executives and lawyers are calling on the financial watchdog in unison: regulate through clear rules, not arbitrary enforcement.
Cryptocurrency issuers Ripple Labs and LBRY and a cryptocurrency exchange Coinbase (COIN) are three companies in the middle of a spat with the US regulator about whether their respective tokens XRP and LBC - or tokens listed on their platform - are unregistered securities and therefore unlawful.
What is the crypto world's message to the SEC?
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XRP to US Dollar
Ripple: ‘Rather than providing clarity, SEC seeks to bully’
The beginning of the SEC’s battle with Ripple Labs dates back to December 2020. Yesterday, General Counsel for Ripple, Stu Alderoty, wrote in an opinion piece:
LBRY: ‘They are making this up as they go’
The SEC filed a complaint against LBRY for failing to register its offering, cryptocurrency LBC, in March 2021. Last week, a Summary Judgement Arguments hearing was held. And on July 21, 2022, LBRY's chief executive Jeremy Kauffman told CryptoLawTV:
Coinbase: ‘One-off, arbitrary decisions that provide little clarity or guidance to the industry’
Earlier this week reports that SEC launched a probe into whether some of the assets listed Coinbase are unregistered securities, sent COIN's shares plummeting 21%.
Last week, Coinbase started a petition calling on SEC to develop a “workable regulatory framework for digital asset securities guided by formal procedures and a public notice-and-comment process, rather than through arbitrary enforcement or guidance developed behind closed doors”.
Coinbase chief policy officer, Faryar Shirzad, wrote in a blog post:
Coinbase (COIN) share price:
Congressman Huizenga: ‘SEC should stop using regulation by enforcement to provide clarity’
Coinbase's hope to broaden the debate to members of Congress seemed to have brought fruits. Congressman from Michigan, Rep. Bill Huizenga, wrote on Twitter in response to SEC Commissioner Gary Gensler on July 28, 2022.
. @garygensler, no exchange wants to “come in and register” without knowing what those “market regulations are”. @secgov should stop using regulation by enforcement to provide “clarity” in the marketplace. https://t.co/58AINIuiWY
— Rep. Bill Huizenga (@RepHuizenga) July 28, 2022
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