EddieJayonCrypto
23 Jan 24
The SEC's legal argument regarding crypto assets and investment contracts has come under scrutiny, with crypto enthusiasts and legal experts pointing out inconsistencies. The SEC claims that crypto tokens listed in the Binance case represent investment contracts and are the embodiment of a security,...
The SEC's legal argument regarding crypto assets and investment contracts has come under scrutiny, with crypto enthusiasts and legal experts pointing out inconsistencies. The SEC claims that crypto tokens listed in the Binance case represent investment contracts and are the embodiment of a security, but this argument has been criticized for lacking supporting case law. Additionally, federal judges in the Ripple and Terra cases declared that the token itself is not a security, raising questions about the SEC's inconsistent legal theories in these cases.
Crypto enthusiasts have noticed significant inconsistencies in the SEC's argument, particularly after the regulator claimed that crypto assets themselves represent the embodiment of an investment contract during a recent legal hearing. The hearing centered on Binance's attempt to dismiss an enforcement action from the securities regulator, following charges in June against Binance and Coinbase for operating unregistered securities exchanges and listing crypto assets deemed investment contracts. The SEC claimed that crypto tokens listed in the Binance case represent investment contracts, adding that the assets are the embodiment of a security, but this theory has faced criticism for lacking supporting case law and exhibiting inconsistencies.
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