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Tomorrow, the United States Subcommittee on Financial Services on Investor Protection, Entrepreneurship, and Capital Markets of the U.S. Congress on the SEC’s Division of Enforcement is scheduled to be heard.
The industry expects policymakers to take Justice Netburn’s recent decision seriously.
Justice of the Peace Netburn criticized the SEC’s actions to conceal an important document that could potentially help the defendant protect a fair notice. The judge criticized the SEC’s behavior in ripple’s lawsuit, which calls into question the agency’s fidelity to the law:
“Hypocrisy in the arguments to the court, on the one hand, that this is not related to the market’s understanding of how and whether the SEC will regulate cryptocurrency, and on the other hand, that Hinman applied and received legal advice from an SEC adviser. in drafting its statement, it assumes that the SEC takes its position in the lawsuit to achieve its goal, and not out of fidelity to the law,” — said in an excerpt from the court order.
THE SEC ignores calls to provide clear rules for cryptocurrencies
Prior to Judge Netburn’s comment, the SEC had been criticized by various cryptocurrency experts for its tactics to regulate the nascent industry.
Industry players have called on the SEC to provide clearer rules for cryptocurrency to avoid violating U.S. securities laws. The agency ignored these calls, saying its rules are clear enough for crypto projects.
However, when companies launch products based on their understanding of the law, the agency is always quick to bring charges against firms and their offerings.
Ripple’s lawsuit perfectly illustrates the fuzzy regulation of the cryptocurrency space.
Because Judge Netburn questions the SEC’s fidelity to the law, House Financial Services Committee Chairman Maxine Waters should focus on this comment at an oversight hearing before the SEC’s Division of Enforcement.
The SEC must publicly declare who is loyal to it — to society and the law or to its common interest — at a hearing to be held tomorrow.
#Congress #Question #SECs #Fidelity #Law