Bitfury CEO Calls Out SEC for Intransparent Litigation

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  • Brian Brooks of Bitfury attacked the US SEC for its litigious management of crypto projects.
  • Brooks added that the FED’s fight against inflation is stifling the price of Bitcoin.
  • US central bank has tightened the financial system since the beginning of the year.

Brian Brooks, CEO of Bitfury, attacked the US Securities and Exchange Commission (SEC)  for its litigious management of cryptocurrency projects in a brief interview with CNBC on August 29.

He asserted that authorities should “get serious” and provide appropriate direction rather than resorting to litigation. In his words,

Regulation does not mean suing people. The approach SEC has had for the last couple of years is not to tell anyone what the rules are in advance but to sue people after they launched a project, started a company, and listed token.

Adrienne Harris, the New York State Department of Financial Services Superintendent, made similar remarks a few months back.  She said, “We should have transparency about what the rules of the road are,” steering away from “regulation by enforcement.”

Brooks also commented on the US Federal Reserve’s (FED) fight against inflation, claiming that their action stifles the price of Bitcoin. “We have discussed the idea that bitcoin is an inflation hedge,” Brooks argued. “The more the market expects tough policy from the FED, the more people think the Fed will keep an aggressive posture, which would tend to harm Bitcoin.”

The US central bank has actively tightened the financial system since the beginning of the year, resulting in rising interest rates. Interest rates have gone up by 2.25%, according to reports. Likewise, US inflation at 8.5% is still far from the goal rate of 2%. Although it reached a 40-year high of 9.1% in July.

Steven Lubka of Swan Bitcoin believes BTC’s perceived underperformance may be due to the type of inflation that the current market faces. At the time of writing, BTC trades at $20,367.14.

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