In March, the regulator sued green-mining company Green United, alleging that founders Wright Thurston and Kristoffer Krohn were promising investors too much and misleading them. Thurston and Krohn deny creating a $18 million fraudulent scheme and seek dismissal of the SEC lawsuit. Green United executives argue that the agency has no authority over cryptocurrencies.
Green United noted that the SEC’s position regarding digital assets is unclear and inconsistent, the regulator cannot give a clear definition of cryptocurrencies and prefers to oversee the industry through coercion rather than negotiations. The SEC is stubbornly refusing to make efforts to create regulatory rules for crypto assets and insists on the application of established rules that are only suitable for traditional finance, Green United noted.
The company’s executives brought another argument in their favor – the SEC was unable to explain by what criteria it ranked equipment for green mining as securities or investment contracts.
Previously, SEC Chairman Gary Gensler has already stated that all crypto assets, with the exception of bitcoin, should be considered securities, according to the Howey test. Recently, Gensler once again emphasized that the rules for exchanges and brokers have long been in place, but cryptocurrency companies themselves refuse to comply with them.
Source: Bits
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