The U.S. Securities and Exchange Commission (SEC) is unusually receiving harsh criticism from U.S. judges. Comments and even court rulings related to the agency’s incompetence, biased attitude, and disregard for rules have devastated Chairman Gensler. As the November elections approach, the SEC now seems to have found its scapegoats.
SEC and Crypto Debacles
According to the latest report based on knowledgeable sources, the SEC suffered heavy defeats in crypto cases and parted ways with attorneys Michael Welsh and Joseph Watkins. The two attorneys, who were told they would be dismissed if they did not resign, submitted their resignation letters this month. They were involved in cases against DEBT Box and Digital Licensing Inc.
In the case against DEBT Box, federal district judge Robert Shelby in Salt Lake City heavily criticized the agency for lack of evidence and false statements. In March, Shelby imposed sanctions on the agency for abusing their authority. Moreover, the Chairman of the SEC had to apologize due to missteps.
The latest decision, forcing the SEC to cover some of the litigation costs for “severely misusing the authority entrusted to it by Congress,” was the final straw.
Will Pressure on Cryptocurrencies End?
Despite SEC Chief Gurbir Grewal’s apology following recent events, known for his harsh statements implying a crackdown on crypto, the agency’s “biased attitude” remains unchanged. Grewal mentioned that staff would be trained and they would be more careful in this regard.
However, two of the five SEC members, Peirce and Uyeda, recently stated that their agency (after approving an ETF) adopted a lethal approach towards cryptocurrencies. They wrote that the SEC is clearly trying to strangle crypto and that this situation needs to change.
At this stage, with the SEC finding its scapegoats, it is being attempted to prevent crypto companies from using the latest decisions (such as misuse of office) against them in lawsuits. Previous statements about XRP Coin by an agency official were considered “personal opinion” and said not to bind the agency.
