The crypto community is mightily pissed and reacting on the net. Regulation through litigation is the strategy of the Security Exchange Commission (SEC) and this approach is now being strongly criticized. The community accuses the US Securities and Exchange Commission of autocracy and lack of communication. Moreover, it is said on Twitter that there is a lack of transparency and confirmation and many question whether it is just about eradication and complete control or whether there is actually good will. In any case, the community is very upset, as the memes show.
Crypto community accuses SEC of not wanting regulation, but eradication
The crypto community is convinced that this is not about Ripple or even Coinbase per se. Despite the fact that the Security Exchance Commission had already announced a tough approach to crypto, industry insiders are upset and legal experts are also calling out the SEC for its despotic approach.
This is because the SEC’s rigid approach has now become conspicuous and is being criticized by numerous market participants, legal experts and industry insiders. They accuse the US Securities and Exchange Commission of lack of communication and autocracy. And they do so completely independently of each other.
This is not just about the action against Ripple Labs. Just a few days ago, Coinbase announced that the SEC was threatening to file a lawsuit against the trading platform. In the process, Coinbase had been trying to work with the SEC for months. Further, the SEC is keeping mum about the allegation and is not clarifying to Coinbase why the Lend program violates the compliance framework.
Further, Ripple is also taking it to the next level. Ripple itself had filed a request for the SEC to disclose the XRP holdings of its employees. However, the regulator refused. Earlier, the Security Exchance Commission had accused Ripple that the company’s sale of XRP was an unregistered securities offering and that it was worth $1.38 billion.
Lack of transparency and confirmation with the SEC
Now, the crypto community is accusing the SEC of lacking transparency in the regulator’s methods. Here, many of the community are also now wondering if the SEC ultimately wants to eradicate cryptocurrencies, wants complete control or if there really is good will behind the accusations.
This was also fueled by the former federal prosecutor of the U.S. Attorney’s Office for the District of Connecticut, James K. Filan. We reported yesterday that he commented on the SEC, saying:
The SEC will stop at nothing to control the entire crypto space. This isn’t just about Ripple. Coinbase is accusing the SEC of using “intimidation tactics behind closed doors to keep the company from launching a loan program.
In addition, Filan also shared the SEC’s latest filing on Twitter. Here, the U.S. regulator opposes answering questions about the application of the Howey test, in which the security status of XRP is determined. Allegedly, the SEC has not provided details on Coinbase’s evaluation of the product. In doing so, it specifically used “the prism of decades-old Supreme Court cases called Howey and Reves.”
Coinbase commented that the SEC told them that they consider Lend to be a security, but would not say why or, more importantly, how they came to that conclusion. Coinbase’s Chief Legal Officer said in the official post:
The SEC will not share the valuation itself, only the fact that it did.
Crypto companies join forces
Billionaire Mark Cuban also joined the numerous conversations from the crypto community on Twitter to advise an offensive approach. Even though Coinbase immediately removed XRP from its trading platform after the lawsuit against Ripple, more and more voices are being heard that the companies should join forces and take a strong and united stand against the SEC. Now would be the perfect opportunity to do so.
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