The SEC's Endgame for Crypto and Web3
Learn about the SEC's endgame for crypto and web3 in the United States, which is to ban the technology. Understand how the SEC's uncertainty gives them leverage and how good and bad actors cannot defend themselves against such an approach.
miles jennings | milesjennings.eth
GC & Head of Decentralization @a16zcrypto | Partner @Lathamwatkins | Thoughts about decentralization, policy, DAOs, NFTs and more - https://t.co/lni8sfx1Py
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1/ The SEC’s action today makes clear what many in the industry have long suspected.
— miles jennings | milesjennings.eth (@milesjennings) June 6, 2023
Under the direction of Chair Gensler, the SEC’s endgame for crypto/web3 in the United States is about one thing: banning the technology. -
2/ In pursuit of this goal, the SEC has fostered uncertainty by refusing to engage the industry proactively, even though this approach has led to significant investor harm, roiled markets, and hindered capital formation in contravention of the SEC’s three-part mission. pic.twitter.com/8a46f4uJ0G
— miles jennings | milesjennings.eth (@milesjennings) June 6, 2023 -
3/ Crucially, this uncertainty gives the SEC leverage. If nobody knows the rules, the SEC gets to make them up as it goes.
— miles jennings | milesjennings.eth (@milesjennings) June 6, 2023
Neither good actors nor bad actors can defend themselves against such an approach.
"Show me the man, and I'll show you the crime"https://t.co/53gXW5EzfK -
4/ But this leverage also appears to be slipping away.
— miles jennings | milesjennings.eth (@milesjennings) June 6, 2023
We’re only a few days removed from an incredible effort in Congress to provide clarity, and the CFTC chair is even testifying today about his agency’s authority and the benefits of decentralization.https://t.co/6CGTuz0DVO -
5/ Against this backdrop, today’s action against Coinbase feels like a rushed attempt to force it into a registration regime that could enable the SEC to ban web3 in the US before its leverage wanes.
— miles jennings | milesjennings.eth (@milesjennings) June 6, 2023
Gensler’s own statements today betray his goal: https://t.co/phyBU3Mdsg -
6/ We strongly believe exchanges need to be regulated and that consumers and investors need to be protected from bad actors and sham token issuers. An exchange registration process should be part of that.
— miles jennings | milesjennings.eth (@milesjennings) June 6, 2023
But Congress should establish these regulations, NOT the SEC. -
7/ Thankfully, America was designed to prevent regulators from operating absent checks and balances. And so, our best defense can and will come from Congress and the Courts.
— miles jennings | milesjennings.eth (@milesjennings) June 6, 2023
For all those building web3 in good faith, that means one thing: Stay The Course.