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SEC’s pursuit of Terra sparks responses from crypto attorneys: ‘Wild’

SEC’s pursuit of Terra sparks responses from crypto attorneys: ‘Wild’

#SECs #pursuit #Terra #sparks #responses #crypto #attorneys #Wild Welcome to InNewCL, here is the new story we have for you today:

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Targeted by the United States Securities and Exchange Commission (SEC), Terraform Labs and its founder Do Kwon have sparked various reactions from advocates within the crypto community.

On Feb. 16, the SEC accused and accused Kwon and Terraform Labs of allegedly selling a “suite of crypto-asset securities.” While community members do not defend Kwon for his actions, they do question the way the SEC is pursuing Terra and its founder.

Web3’s attorney, Mike Selig, posted his thoughts on the matter on Twitter. According to Selig, the SEC is characterizing algorithmic stablecoin Terra USD (UST) as a security because it could be traded for LUNA, now known as Luna Classic (LUNC), which the SEC also says is a security. Blessed explained that according to this theory “almost anything can be a security”.

Alliance DAO General Counsel Mike Wawszczak also commented on the issue. According to Wawszczak, SEC Chairman Gary Gensler may want “complete discretion” in the application of securities laws to all transactions. He tweeted:


It’s hard to read the SEC’s lawsuit against TFL and not conclude that Chairman Gensler desires absolute discretion to apply securities laws to any transaction he wants.

He applied for $2.2 billion for that job in fiscal 2023.

(For comparison, San Francisco’s budget was $13 billion last year)

— Mike Wawszczak (@mikedotwaves) February 17, 2023

Justin Browder, a partner at law firm Willkie Farr & Gallagher, likened the SEC’s description of using UST to generate returns on a different protocol to “putting fiat into a bank.” The attorney also questioned whether there is any other non-safety currency that doesn’t behave this way. In the end, Browder called the SEC’s actions “wild.”

In addition to the lawyers, other members of the crypto community also joined the conversation. DylanDaniel believes that if everything becomes a security, the SEC will need to expand and scale itself. The Web3 community member hopes Gensler has a solid plan.

Related: Terra is suing a ‘roadmap’ to attack other stablecoins: Delphi Labs

On Feb. 13, similar sentiments took to Twitter when the SEC decided to go after Paxos, emphasizing that stablecoin BUSD (BUSD) is a security. Many members of the community were confused, arguing that stablecoin users are not buying it and expecting its price to increase.

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