The cryptocurrency world continues to be embroiled in controversy as the US Securities and Exchange Commission (SEC) takes action against companies like Gemini for selling unregistered securities. In a recent interview, former SEC enforcement chief Lisa Braganca expressed her confusion as to why the regulator took so long to intervene in the case of Gemini, despite its clear stance on products like the “Earn” program offered by the company.
Braganca’s comments have sparked a reaction from the XRP community, who are closely following the legal battle between Ripple and the SEC. Attorney Jeremy Hogan, a pro-XRP lawyer, questioned Braganca’s reaction in light of the SEC’s delay in suing Ripple, which the regulator waited 5 to 6 years to do. Similarly, attorney John Deaton, a friend of the court on behalf of XRP holders, accused the SEC of waiting to cause “maximum pain” to further its agenda of regulating the crypto markets.
One member of the XRP community pointed out the disparity in the SEC’s treatment of Coinbase when it wanted to launch a similar product to Gemini’s Earn program. Despite being explicitly told not to launch the product, Coinbase faced opposition from the SEC, while Gemini was allowed to operate for over a year before facing enforcement action. This has led some to question the SEC’s motives in its actions against cryptocurrency companies and whether its interests truly lie in protecting retail investors.
The legal battle between Ripple and the SEC has been ongoing for over 2 years, with the regulator accusing Ripple and its executives of offering and selling an unregistered security in the form of the digital asset XRP. The SEC’s actions against companies like Gemini and Ripple have raised concerns within the cryptocurrency community about regulatory overreach and the lack of clarity in the regulatory framework governing digital assets.
Overall, the SEC’s enforcement actions in the crypto space continue to raise questions and spark debate among industry experts and community members. As the regulatory landscape for cryptocurrencies evolves, it remains to be seen how regulators like the SEC will navigate the complex and fast-paced world of digital assets while balancing investor protection and market innovation.
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