Although the agency claims jurisdiction over crypto, as Gary Gensler said the rules on digital assets are clear, a recent SEC email revealed that in reality it has no rules against crypto deals.
SEC doesn’t have any rules restricting crypto business
In a recent disclosure via email, it was revealed that the SEC has no rules restricting the trading or holding of crypto.
The email states that the SEC has a prohibited holdings list that includes securities that fall under 5 CFR 4401.102 (c) (1) and that BTC, ETH and XRP have never been part of it.
The email disclosure is part of Ripple’s investigation filing aimed at uncovering the SEC’s internal deliberations about crypto. Where Judge Sara Netburn should review the relevant information on camera to decide whether or not it should be disclosed.
SEC jurisdiction in question
According to court reporters in defense of the agency’s SEC attorney, Jorge Tenreiro said:
“You want conversations with other parties and notes. Disclosing this information would undermine our ability to collect information. The professor is on the payroll. There’s a senator”
Now that particular statement raises additional questions about law enforcement by the SEC.
Especially when the agency is already being accused of influencing trading by atypically rejecting the first Bitcoin ETF at the last minute. Which caused the coin to crash significantly when it finally fell 10%.
One of them is that while the name of the congressman is unknown, what was the purpose of having such consultations with a member of a legislature?
After months of legal proceedings, it seems pretty clear that the agency is trying to regulate a relatively new market through a fairly old securities law. It’s just incredible that the agency is attempting to regulate crypto through the Securities Act of 1933, even though no update or judicial interpretation of the law has yet been made in this regard.
If the state is intent on regulating crypto, the SEC is not a suitable platform for the job. Since it is only responsible for stocks.