Former United States prosecutor has slammed the Security and Exchange Commission for its approach to control the crypto space. The prosecutor hit out at the commission, stating that the commission will stop at nothing to get the crypto space clean. This comment came after the SEC’s recent threat to sue Coinbase exchange for its product launch, Lend.
James Filan, a member of the ABA, tweeted about SEC’s pursuit of crypto platforms, especially Coinbase and Ripple. Recently, Coinbase accused the SEC of using an intimidation strategy to stop the exchange’s launch of Lend after the agency threatened to sue them. Ripple, on the other hand, filed a motion to compel against SEC. The agency filed a lawsuit against Ripple for breaching trading regulations and allowing SEC employees to own XRP assets.
SEC Hunts Down Crypto Platforms
Coinbase exchange disclosed that the SEC warned to sue the company for its high yield program. According to Coinbase, they had been in contact with the agency about launching the Lend program but were surprised when the SEC decided to sue the platform if they went ahead with the program. According to the SEC, Lend involved security, but they were silent on how they came about the decision.
SEC made a similar move against Ripple a few months back. SEC stated that for allowing SEC’s employees to trade XRP and own the crypto asset, Ripple went against the commission’s crypto trading ethics. Consequently, this made Ripple file a motion to compel demanding preclearance files and workers’ certifications from the SEC. However, the SEC filed an opposition, stating that the defendant’s request to produce employee data was an intrusion.
As a result of the hunt, the cryptocurrency community emphasized a thin line between the financial regulator’s action against Coinbase for Lend program and Ripple’s sale of XRP. After the lawsuit was filed against XRP, Coinbase delisted XRP from its platform immediately. The community is now urging Coinbase to re-list XRP and join Ripple in the warfare against the SEC.
Ripple’s executive tweeted that SEC’s renewed war on crypto will continue to play out. He said they had been conversing with the SEC for almost three years about XRP trading regulations, and the commission never cleared their stance. This is similar to what one of Coinbase’s executives said after the threat to sue.
It’s believed that the war against the crypto industry will not end anytime soon. The SEC employs a similar tactic in its dealings with crypto platforms, which shows SEC’s desperation to control the crypto space. Certainly, these consistent attacks will cripple the growth of the crypto industry if not stopped.