SEC Takes Tough Action Against Crypto Assets Industry, Sparks Widespread Follow

Recently, the U.S. Securities and Exchange Commission ( SEC ) has taken a series of tough measures against the Crypto Assets industry, triggering widespread attention and discussion within the industry. SEC Chairman Gary Gensler has repeatedly hinted during his term that most crypto tokens are considered securities and has maintained a skeptical attitude towards the entire industry. This week, the SEC officially sued two of the world's largest Crypto Assets trading platforms, an action seen as a significant blow to the crypto industry.

Regarding these lawsuits, legal expert Brian Frye believes that a certain trading platform is at a disadvantage because it has essentially acknowledged most of the SEC's allegations. Another trading platform is in a slightly better situation because it has been working hard to comply with SEC regulations, but the SEC has consistently refused to support its compliance efforts. Frye points out that the court may take a critical view of the SEC's actions, as regulatory agencies should act in a predictable manner.

Lawyer Mike Selig believes that these lawsuits are not entirely a bad thing. They may prompt Congress to recognize that there are issues with the SEC's current enforcement regulatory approach, thereby pushing for the formulation of more comprehensive Crypto Assets legislation. At the same time, this may also lead some companies seeking compliance to leave the United States and turn to other countries with more favorable regulations.

Kristin Smith, CEO of the Blockchain Association, emphasized that these lawsuits highlight the necessity for Congress to take immediate action. She stated that the United States must remain competitive in the global Crypto Assets regulatory race.

Regarding the SEC's attitude, Frye pointed out that the SEC still seems unable to provide a coherent explanation of what it wants to regulate, why it wants to regulate, and how it intends to regulate. He believes that the SEC has a credibility issue, and its actions may cause pain for Crypto Assets companies in the short term, but in the long run, it may face strict scrutiny from the courts.

Experts believe that the future of the Crypto Assets industry is likely to be decided by Congress rather than the courts. Even if the SEC wins in litigation, Congress may still legislate to establish a reasonable regulatory market structure for Crypto Assets. Industry insiders generally believe that the U.S. will ultimately follow the lead of other major countries to establish an appropriate legal framework for Crypto Assets.

These lawsuits have also conveyed a clear message to other crypto assets trading platforms. The SEC's enforcement division seems to agree with Gensler's view that most crypto assets fall under the category of securities. However, this legal stance remains controversial and may be challenged in multiple lawsuits in the future.

Overall, the SEC's actions mark a new phase in the regulation of Crypto Assets. While there may be some short-term impacts on the industry, it could also drive the establishment of a clearer and more comprehensive regulatory framework. Industry professionals and regulatory bodies need to seek a balance between protecting investor interests and promoting innovation to ensure the healthy development of the Crypto Assets industry.