The co-founder of the cryptocurrency company Terraform Labs, who filed a lawsuit against the US Securities and Exchange Commission (SEC), accused regulators of unreasonably harassing cryptocurrency companies.
Terraform Labs CEO Do Kwon, who accused the SEC of not maintaining confidentiality when serving the subpoena,
told in an interview about his attitude to the activities of regulators, who have recently strengthened supervision of the cryptocurrency market. According to Do Kwon, understanding the concerns of regulators about illegal activities, he was ready to advise them on the industry and the activities of his company. But their hostility forced him to reconsider his attitude to the policy of the authorities.
“It is very important that cryptocurrency companies work with regulators from a position of strength and confidence,” Kwon said.
The CEO of Terraform Labs believes that regulators spend too much time studying the activities of companies that adhere to the law and thereby inhibit both the development and progress of the entire crypto industry. He stated that instead of pursuing honest companies, the SEC needs to strengthen its detection of illegal activities and root out fraud and crime in the crypto industry.
Kwon warned that financial regulators would harass every company that launches DeFi projects. According to him, companies that want to change the traditional financial system should be ready for this. He noted that despite the bias, the authorities really want to globally regulate the cryptoindustry, but the existing laws and regulations do not allow this.
“I feel like one can come up with a minimum viable set of really clear rules to decide what qualifies as a reliably decentralized asset and what constitutes a security. Clarity will make life easier for regulators and cryptocurrency companies.
Not only Do Kwon is disappointed with the SEC’s actions. Recently, the head of Ripple expressed disapproval of the SEC’s adoption of ETFs on “green” bitcoin and the unclear status of XRP. SEC Commissioner Esther Pearce recently acknowledged that the Commission is now pursuing an anti-cryptocurrency policy and should abandon the conservative approach in regulating the crypto industry.
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