Is the SEC Looking for a Cheap Way Out with Crypto Regulations?

The US Security and Exchange Commission (SEC) has been accused of trying to clarify crypto laws by indiscriminately filing suits against crypto companies. By that means, the Commission is trying to win before a Federal court in Virginia over its former battles with crypto assets.

SEC’s Appeal for a Win

The US Security and Exchange Commission asked the court in Virginia for a win in the case of a record over some important official documentation. There are speculations that the documents might show that a former official of the commission had a conflict of interest with cryptocurrency oversight.

A report from Law360 said that the Security and Exchange Commission stated that it has presented all needed documents. Howbeit, they refer only to those memos that could legally be provided. The commission’s legal team argued that any document withdrawal in any form is justifiable.

It said further that the process of its searches does not have to be perfect as it was just to identify the needed records. But the commission also said through a memo where it supported summary judgments that the basis of its searches tilted toward the plaintiff’s choice of language.

Answering to Plaintiffs

The SEC stated that it has no obligation to continue attending to every discovery from plaintiffs. Especially because it was not contained in the initial FOIA. It also stated that the commission has very limited resources.

The plaintiff’s request includes domain names, precise time, and mailboxes. 

Empower, in their submission, said that their inquiry is focused on just three former officials of the Security and Exchange Commission. The three are William Hinman, Marc Berger, and Jay Clayton. The inquiry asked to know the details of some decisions they concerning crypto assets.    

The lawyer representing XRP holders, John Deaton, criticized the Security and Exchange Commission over what he termed as cover-ups. He alleged that William Hinman did not receive only retirement funds as payment. But while Hinman was delivering speeches in 2017 and 2018, he was said to have received two forms of payment.

It was said further that Hinman received $1.57 million as a retirement benefit. He also got nearly $9 million from profit-sharing bonuses.