Why the SEC Will Never Control You: The One Thing They’re Missing

The SEC’s history of enforcement actions against crypto reveals that the agency is all bark and no bite. While they have sent many enforcement letters to crypto companies and pursued cases against scams and fraudulent activity, fines and settlements are the only punishment administered. The SEC’s attempt to regulate digital assets as securities is exemplified by the Telegram case, where they had to return $1.2 billion to investors and pay an $18.5 million fine. However, precedent-setting cases like LBRY versus the SEC show that the agency cannot regulate crypto on the secondary market. Overall, the SEC’s influence on the crypto industry is limited.

The SEC is trying to control how we invest in crypto. That needs to stop.

Cryptocurrency is slowly taking over traditional modes of investing, and the SEC wants to regulate it. Many people believe that it’s intrusive, and there’s no need for it. This article will delve deeper into the history of SEC enforcement actions against crypto and why its need to regulate needs to stop.

The SEC is all bark and no bite:
After looking through the history of SEC enforcement actions against crypto, one evident thing stands out – the SEC is all bark and no bite. They have been serving enforcement letters to crypto companies, and although some have been settled, the SEC has not had a significant impact on crypto. Full control of crypto is far beyond SEC control, and the sooner they realize that, the better.

The history of SEC enforcement against crypto:
Back in 2013, SEC enforcement actions were relatively rare and mostly taken against scammers who used digital assets to defraud investors. However, the numbers started increasing between 2014 and 2017, SEC versus Erik Voorhees for SatoshiDICE being one of them. ICOs were pumping, and the SEC was trying to keep up with ICO mania. An example is the SEC versus John McAfee for promoting an ICO and SEC versus Telegram.

The SEC’s playbook – Pay Up:
It’s evident that fines, repayments, and money are always the result of these cases. They don’t go to court, and some have not even been settled. The Telegram case foreshadows how the SEC is trying to regulate crypto by classifying digital assets as securities. This approach has caused more harm than good, as it significantly affects the growth and stability of the industry.

LBRY versus the SEC:
The SEC issued an enforcement action against LBRY Inc. for offering unregistered digital asset securities and making money from it. The case was settled in New Hampshire, and the SEC won summary judgment over LBRY Inc. However, on January 31, 2023, a judge ruled that LBRY’s token was not a security on the secondary market. The precedent has been set, and the SEC can’t regulate crypto on the secondary market.

In conclusion, SEC’s irrational fear of crypto being destroyed by a tyrannical lizard person is nothing more than a bad dream. The industry is thriving, and unnecessary regulations are not needed. The SEC needs to stop trying to control how we invest in crypto as they’re all bark and no bite. The history of SEC enforcement actions against crypto shows us that they have little impact on the industry. They should take a hands-off approach and let the industry flourish on its own.

Notify of
Inline Feedbacks
View all comments

The NFT Market is Projected to Exceed $200 Billion by 2030.

Non-fungible tokens (NFTs) are predicted to have a significant impact on the global economy, transforming the way value and ownership are perceived in both the digital and physical worlds. The NFT market,...

Why I'm Going All In on Crypto at the Moment!

In a brief news round-up, a video by Sam covers cryptocurrency news for the day. The cryptocurrency market has fallen by around 3% in the last day, and although the fear and greed index is very fearful,...

More Digital Currency is Not Necessary

US Securities and Exchange Commission (SEC) Chair Gary Gensler has said the world does not need more digital currencies. Gensler, who has held a firmly anti-crypto stance since taking office, made his...

"Can XRP Experience a Whopping 1271% Surge After Recent Dip?"

The video discusses the correlation between XRP and Dogecoin, which has been observed for some time. The content analyzes the correction percentage of Dogecoin and compares it to XRP’s current price,...

Get Ready to Discover the Top 10 Altcoins Poised to Rule the Crypto World in the Post-Bear Market Era!

A video on Creative Busy discusses the current bear market in crypto and its effects on global economics. The Federal Reserve raising interest rates by 0.75% and deflation concerns have impacted the cryptocurrency...

Top Lawyer Claims Industry's Input is Crucial for Crypto Regulation

Lawyer Claire Cummings has argued that those who understand crypto should lead industry regulation. Cummings is managing partner of Cummings Pepperdine, a London-based law firm operating at the intersection...

Discover the Top Cryptos and Stocks to Buy Now – My New Investment Strategy!

The cryptocurrency community has experienced a difficult week, leading some investors to turn to Bitcoin maximalism. The situation has prompted a rethink of investing strategies, with a focus on diversification...

VanEck Predicts Ethereum Will Reach $50,000 by 2030.

Investment management firm VanEck has suggested an ambitious price target of over $50,000 for Ethereum by 2030, grounded in practical analysis. Understanding Ethereum’s valuation requires comprehension...

How to Turn $1 into $1,000,000 with Crypto: The Ultimate Guide to Becoming a Crypto Millionaire

The article discusses a plan to reach millionaire status in the crypto market. The author outlines their DCA (dollar cost averaging) strategy and provides examples of how to use it. They emphasize the...

Former Co-Owner of Minnesota Vikings Imprisoned for Cryptocurrency Fraud

Reggie Fowler, the former co-owner of the NFL’s Minnesota Vikings, has been sentenced to over six years in prison for his involvement in a $750 million cryptocurrency scam. Global Trading Solutions, which...
Load More



Coming Soon

Subscribe and be the first to know about the launch

Look at our roadmap


Thanks for subscribing

You will only receive important notifications
For now, follow to our social networks