A Beginners Guide to Not Worrying About the SEC’s Attack on Crypto

Article source, here.

TL;DR

• The SEC can’t pass laws, that's a job for - you guessed it - law makers (and judges).

• The SEC's current approach is to 'regulate by enforcement' (instead of setting clear rules).

• The crypto companies they go after could fight the charges in court…

• But if they fight and lose, the ruling would set a legal precedent that could then be wielded against the entire industry.

• So instead, most play it safe, and settle outside of court.

Full Story

Ok, so we've said it before, and we'll say it again:

Much to the disappointment of our parents, we're not lawyers.

Which is why so much of the Securities and Exchange Commission's (SEC) random and broad reaching crypto-related lawsuits, has had us spooked.

We didn't understand it.

And while we'll probably never understand it completely - we're learning...

Our latest lesson came in the form of a tweet thread, from Logan Bolinger, which really helped to calm our nerves:

The gist of Logan's thread being this:

Chairman of The SEC, Gary Gensler's opinions have weight, sure - but neither he, nor The SEC as a whole, can pass those opinions into law.

That's a job for - you guessed it - law makers (and judges).

Law makers do so by passing legislation, while judges do so when deciding the outcome of specific lawsuits.

Having learnt this has made us a whole lot more optimistic for the future of crypto in the US.

And it's given us a whole new understanding of why so many crypto companies are speaking out against The SEC's current approach of 'regulating by enforcement' (instead of setting clear rules).

You see, these crypto companies could fight the charges in court.

But if they fight and lose, the ruling would set a legal precedent that could then be wielded against the entire industry.

So instead, most play it safe, and settle outside of court.

...knowing they could've had a good shot at winning - but taking the gut punch to ensure no legal precedent is set.

It's kind of like having your older sibling sucker punch you while your parents aren't around.

You know you're being done dirty, but there's not much you can do about it.