- The recent actions of the U.S. Securities and Exchange Commission have made it unpopular in crypto circles.
- Crypto advocate and lawyer John Deaton criticized the agency’s lawsuit against crypto exchange Coinbase.
- Former SEC official John Reed Starks says the agency will not approve a Bitcoin Spot ETF.
The crypto community might be tired of the ongoing regulatory onslaught against crypto institutions by the U.S. Securities and Exchange Commission. Notably, the SEC’s recent lawsuit against crypto exchange Coinbase seems to be drawing dislike from all quarters.
In a Twitter post, crypto advocate and lawyer John Deaton referred to the agency as “arrogant” and “drunk off power.” According to Deaton, these recent acts of government agencies may lead to “less power and influence.” He made this comment in reaction to a post about the lawsuit between Coinbase and the SEC.
Weeks back, Coinbase revealed the regulator had instructed it to delist all tokens save for Bitcoin or face legal actions. Amidst the ongoing lawsuit against it by the regulator, Coinbase has drawn support from unexpected corners.
Recently, six securities law scholars filed Amicus – friends of the court – briefs in support of Coinbase. The scholars drawn from institutions like Yale, Univ. of Chicago, UCLA, and Fordham countered the arguments of the SEC on crypto tokens. Specifically, the scholars argue that crypto tokens trading on secondary markets do not qualify as investment contracts, contrary to the SEC claims.
Similarly, U.S. Senator Cynthia Lummis and some crypto lobbying organizations called on the federal court to dismiss the SEC action against Coinbase. According to the filing, they claim the SEC is overreaching its authority in its action against the crypto exchange.
In related news, a former SEC official John Reed Stark says the regulator will not approve a Bitcoin Spot ETF unless the regulator has a change of heart. Additionally, while admitting that partisan politics are influencing the US crypto policy, the attorney says a Republican commissioner might lead to more favorable crypto policies.
The SEC since the start of the year, has been embroiled in legal tussles with several crypto entities. Before the Coinbase lawsuit, the regulator turned its eye to the leading crypto exchange in the world, Binance, over KYC and money laundering issues.
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