US Supreme Court strips SEC of its power to conduct internal trials – DiarioBitcoin

From now on, the lawsuits and legal proceedings opened by the SEC They must go through federal courts, with their corresponding trial and close with the verdict of a jury.

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• The SEC You will no longer be able to carry out internal trials against people and entities
• All legal proceedings brought must go through a federal court
• The measure, established by the US Supreme Court, restricts certain powers that the SEC
• Although it is a general resolution, the measure represents fairer conditions for crypto-on-demand companies

The US Securities and Exchange Commission (SEC) It lost the power to conduct internal trials, so now the legal proceedings it initiates must go through a federal court and be subject to the verdict of the assigned jury members.

Supreme Court limits certain powers of the SEC

This resolution was established by the US Supreme Court., which voted this Thursday to reduce the powers of the SEC in judicial matters, and thereby assume due process in accordance with current provisions.

According to the media CoinDesk, originally the SEC had the power to conduct internal trials presided over by administrative law judges, instead of filing lawsuits in federal court. With this, processes related to civil securities fraud and financial sanctions were handled, somewhat speeding up the procedures and being able to cover more ground.

However, after this resolution of the U.S. Supreme Courtnow the SEC The Federal Court will be responsible for handling any complaints and legal proceedings through the federal courts, which are the primary venue for examining cases involving alleged violations of securities laws and for establishing financial penalties for those responsible.

The zeal of the SEC against the crypto sector

While the new measure of the US Supreme Courtescrow for all processes that may be undertaken by the SEC, The move also has implications for how the agency has acted against the crypto sector in recent years. For example, the cases of TokenLot LLC and ICO Superstore in 2018, whose processes were resolved with internal trials.

Beyond these cases, the SEC has made its weight strongly felt in several complaints and proceedings against reputable companies in the crypto sector. He is currently fighting disputes in federal courts against Coinbase and Binance, while waiting for the judge’s decision to set a fine against Ripple Labs. On the other hand, it exercised compliance measures against entities such as Robinhood, Uniswap and Krakenaccusing them of marketing unregistered securities through their products and services.

The president of the SEC, Gary Gensler has repeatedly said that the majority of cryptocurrencies currently in circulation could well qualify as securities, which is why they will take action against all those entities that do not follow the agency’s legal provisions. However, various companies in the sector complain to the regulator that there are no clear criteria applicable to digital currencies, making it difficult to comply with current laws if the rules are not clarified.

While there are many who rate the actions of the SEC as arbitrary and restrictive, the courts have shown on a couple of occasions that the agency has made mistakes. One of the most notable cases is that of Ripple Labs, where it was determined that the sale of the token XRP among retail investors did not incur violations of securities laws; and the other is that of DEBT Box, where it was shown that the regulator made false accusations and presented altered evidence to tip the balance in its favor.

Article by Angel Di Matteo / DailyBitcoin

Picture of DailyBitcoin, free to use, under public domain license

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