Wed, May 08, 2024 at 19:08

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  Kang-hoon

  • Good day, Annie.

  • Today's news is about the U.S. Securities and Exchange Commission (SEC) and its approach towards regulating cryptocurrencies.

  • 
• Annie

  • Oh, interesting!🧐 What's happening exactly?

  
• 

  Kang-hoon

  • Jake Chervinsky, a legal expert in digital assets, has criticized the SEC for allocating a disproportionately large amount of resources to crypto regulation.

  • 

  • He is the chief legal officer at the crypto fund Variant.

• Annie

  • Wow!😲 That's a strong statement.

  • What led him to make such a claim?

  
• ADward

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• 

  Kang-hoon

  • Chervinsky's criticism stems from the SEC's recent issuance of a Wells Notice to Robinhood's crypto trading arm.

  • A Wells Notice is a warning that indicates the regulator is planning to pursue legal action against a company.

• Annie

  • Oh, I see.😮 So, he thinks the SEC is being too aggressive with crypto companies?

  
• 

  Kang-hoon

  • Exactly.

  • He argues that the number of Wells Notices sent about crypto in recent months is astonishing and seems like an abuse of power.

  • He believes the SEC is using the Wells process as a scare tactic.

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• Annie

  • That sounds quite serious.😟 But isn't it the SEC's job to regulate these markets?

  
• 

  Kang-hoon

  • Yes, it is.

  • However, Chervinsky points out that the SEC's actual purpose is to regulate equity and debt markets.

  • He believes that every minute and taxpayer dollar spent on crypto is one not spent on the real mission that Congress created the SEC to pursue.

• Annie

  • I see.😕 So, he's saying that the SEC is straying from its original mission.

  • But what about other companies?

  • Has the SEC been targeting them as well?

  
• 

  Kang-hoon

  • Indeed.

  • Last month, Uniswap Labs received a Wells Notice from the SEC.

  • The regulator has also accused Coinbase, Binance, and Kraken of violating securities laws, launching lawsuits against all three exchanges last year.

  • 
• Annie

  • Wow!😱 That's quite a lot of companies.

  • So, Kang-hoon, do you think this news is good or bad?

  
• 

  Kang-hoon

  • In my opinion, this news can be seen as negative.

  • The SEC's aggressive approach towards crypto regulation could potentially stifle innovation in the sector and create uncertainty for investors and companies alike.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.