Pro-XRP lawyer MetaLawMan has criticized the United States Securities and Exchange Commission (SEC) over its regulation by enforcement strategy. The financial regulator has remained under the radar of crypto market commentators for its hostile view of the industry. Over the years, the SEC has filed a plethora of lawsuits against industry executives and firms. Crypto users opine that this hostile approach has led to a talent exodus away from the country.
Crypto Enthusiasts Lambasts The Commission
In an Oct 31 tweet, MetaLawMan reacted to an SEC post informing users to stay steps ahead of dubious investment scams. He rolled back conflicting narratives the SEC has issued since its “war” on digital assets. For years, the regulator has told users to register stressing that there are rules in the crypto space.
Recently, the Commission also wrote about “crypto asset security,” but the conflict follows the classification of certain assets as securities and others as commodities. There have also been conflicts concerning the right regulator to oversee the sector. While some back the SEC, a section believes it falls under the purview of the Commodity Futures Trading Commission (CFTC).
Furthermore, the frequent court actions have widened the risk of investment. Without proper regulations, firms could be charged at discretion. Crypto users have called on US regulators to follow the European Union model in rolling out the Markets In Crypto Asset Regulation (MiCA).
“And don’t let the SEC trick you with:
– Just come in and register.
– The law governing crypto is clear.
– There’s something called a “crypto asset security.”
– The token is a security. The token is not a security.
– We can’t tell you whether any particular token is a security–we will let you know when we sue you,” MetaLawMan wrote.
SEC Cites Investor Protection
While the crypto community fires shots at the financial regulator’s tactics, Gary Gensler, the SEC Chairman maintains that the Commission is concerned about investors. Bad actors have drained user wallets leading to more scrutiny from global regulators. In a recent release, the SEC restated guidelines for users to avoid playing into the hands of bad actors.
Users were urged to only deal with registered investment firms and receive information from trusted sources. Per the statement, bad actors can deploy persuasive tactics warning users of the risk involved in certain deals. “Trick – Fraudsters often offer “no risk” or so-called “can’t miss” investment opportunities with promises of quick, high guaranteed investment returns and great wealth.”
