Crypto.com Sued the SEC While Gary Gensler Slams Industry – The War Continues

• Crypto.com sued the SEC while Gary Gensler slammed the industry, claiming grifters and fraudsters abound.
• The agency sent a Wells notice to Crypto.com, not expecting a preemptive strike from the exchange.
• Thailand's SEC approved crypto products for private and mutual funds in a move that seems outlandish for the US SEC.

The SEC vs crypto industry battle is far from over.

Cryptocurrency exchange Crypto.com sued the SEC on Tuesday in a preemptive strikeafter receiving a Wells notice.

After the SEC's seemingly irrational attacks against Ripple, what will happen now? Meanwhile, the head honcho himself, Gary Gensler, slammed the industry as full of fraudsters' and grifters.'

At the same time, the Thai SEC is doing the opposite and allowing crypto products for mutual and private funds. Is Thailand inviting disaster or financial progress?

The question on everyone's mind is, Why is the SEC shooting itself in the foot?' Let's dissect the bullet hole below to see why.

Crypto.com Attacks SEC With no Remorse - Why?

Why did Crypto.com just sue the US SEC? The exchange explained itself in a public post, saying that the SEC had forced their hand.

Our decision to sue the SEC follows our receipt of a Wells notice from the Commission staff. [...] We are doing so to protect the future of the crypto industry in the US, joining a series of our peers who are actively defending themselves and taking action against a misguided federal agency acting beyond its authorization under the law.Crypto.com

This move is unprecedented for the company, which they themselves admitted. However, they claim the SEC has expanded its jurisdiction beyond statutory limits.'

In other words, Gensler has pushed things too far. The ongoing war is becoming more disadvantageous for the SEC and the writing's on the wall.

One fundamental critique from Crypto.com is that the SEC has invented the term Crypto Asset Security out of whole cloth.' And that it has no foundation in the Securities Act or Exchange Act.'

The SEC has systematically targeted the likes of Ripple, Binance, Coinbase, and Consensys. It seems Crypto.com was next, but the latter was faster on the trigger.

Will this be a kill shot, miss, or backs-to-the-wall shootout?

Gary Gensler Slams Bitcoin Not a Currency,' and Industry Agrees

SEC Chairman Gary Gensler called the crypto industry full of fraudsters' and grifters' and Bitcoin not a currency' last month.

Despite Bitcoin beinghailed as a means of payment and peer-to-peer cash system by its mysterious Bitcoin creator, Bitcoin is anything but at the moment.

Merchants aren't adopting $BTC because of slow and expensive transactions and significant price volatility.

Even the Lighting Network hasn't captured much interest as a medium of exchange. Our interview with macroeconomist Lyn Alden showed most of Bitcoin's value lies in its store of value and speculation.

And it's true.

Major players like MicroStrategy are hoarding Bitcoin, and even the most ardent Bitcoin advocates are moving toward the store of value' narrative.

But this doesn't mean it'll remain so. The Lightning Network has a solid chance of changing the narrative.

Thai SEC Approves Crypto Products for Mutual and Private Funds

While the US SEC seems to be against everything crypto, the Thai SEC embraces it. It recently proposed allowing private and mutual funds to start investing in crypto products.

That's because institutional investors have shown significant interest in crypto. And the local SEC cares about that.

Stablecoins and more volatile crypto (like Bitcoin) will be allowed, though under different rules. The SEC also needs to manage the regulatory landscape, including the following:

• Asset custody
• Value calculation
• Advertising
• Information disclosure
• Market manipulation
• Inappropriate trading orders from firms

A Digital Asset Regulatory Sandbox is in the making, with ten private firms trialing the exchange of crypto projects for local currencies.

This could easily lead to crypto payments becoming a reality in the country. However, the SEC will have a tough time convincing the Bank of Thailand to accept crypto as a means of payment.

Summing Up - Is the US SEC...Riddled with Bullet Holes?

Most would offer an affirmative answer to that question. Crypto.com's preemptive move against the SEC is a troubling sign for the agency.

It might have gone too far in hounding crypto. And now, everyone's coming to collect their dues. We'll see what happens next as, hopefully, the future of the SEC is more pro-crypto.

References

• Crypto.Com Takes Legal Action Against SEC, Chair Gary Gensler To Protect Future Of Crypto In US' (TradingView)
• Thai SEC floats allowing crypto products in mutual, private funds (Cointelegraph)

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