Citing the litigation with Ripple, an expert argues that the SEC has never been in a weaker position in terms of regulating the digital asset industry.
In a series of tweets, Bob Ras, co-founder of Sologenic, expressed his thoughts about the Securities and Exchange Commission’s (SEC) approach to crypto regulation, particularly against blockchain technology firm Ripple.
According to Ras, the current unfolding developments in the crypto industry illustrate how weak the U.S. regulator has become on the topic of crypto regulation compared to other past endeavors.
‘The “Ripple Effects” of the SEC’s aggressive approach to crypto regulation are being felt throughout the industry. The current situation reveals that the SEC has never been in a weaker position on Crypto topic in the past,’ he remarked.
1/7 The “Ripple Effects” of the SEC’s aggressive approach to crypto regulation are being felt throughout the industry. The current situation reveals that the SEC has never been in a weaker position on Crypto topic in the past. @ForbesCrypto @Forbes https://t.co/WaORc3U1Cl
— Bob Ras (@bobrasX) May 23, 2023
Ras expressed this sentiment following a Forbes report which stated that the unsealed Hinman document would potentially vindicate Ripple in the multi-year legal battle and boost confidence for Coinbase in its litigation against SEC. Recall that Judge Torres denied the SEC’s motion to keep Hinman docs sealed, as reported by The Crypto Basic last Wednesday.
Ras further criticized the SEC’s attempt to categorize nearly all digital assets as securities, emphasizing that this demonstrates a lack of understanding of the unique nature of these emerging technologies.
He pointed out that companies like Ripple, currently entangled in legal battles with the SEC, are unnecessarily burdened by the regulator’s oversight.
Moreover, Ras compared the SEC’s approach to an outdated lawmaker applying obsolete laws to a technology they do not fully comprehend. He emphasized that crypto assets represent a new asset class and should not be treated solely as securities. Instead, Ras argued that the SEC should have created a regulatory framework considering these assets’ unique qualities and potential.
Regulatory Uncertainty Forcing Innovation Abroad
Speaking further, the serial entrepreneur stressed that the SEC’s pursuit of crypto projects without reasonable grounds has backfired, resulting in stifled innovation and many projects moving offshore. He argued that the situation hampers progress and leads to job losses, decreased investment, and capital outflow from the United States.
The Crypto Basic disclosed two weeks back that more experts and analysts have argued that the lack of regulations and standards for the digital asset market in the U.S. encourages important economic innovation to go abroad.
Conclusively, Ras urged the SEC to shift away from its regulation-by-enforcement approach and adopt a regulatory framework that fosters innovation while protecting investors.
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