The US Securities and Exchange Commission (SEC) recently dropped all charges against cryptocurrency startup Digital Licensing.
In response, a majority of senators wrote to Gary Gensler, the head of the SEC, to voice their disapproval of the case’s treatment.
Five Republican senators from the United States sent a letter to US SEC Chairman Gary Gensler on February 7. The senators from the United States who were involved in the lawsuit against the cryptocurrency company known as “DEBT Box”—J.D. Vance, Bill Hagerty, Katie Boyd Britt, Thom Tillis, and Cynthia Lummis—expressed concern about the agency’s “enforcement processes.”
Included in the letter from the US Senators were details of the SEC’s “questionable” processes, such as the temporary hold on the firm’s and the principals’ assets. Prior to becoming aware that “the Commission made materially false and misleading claims… and damaged the integrity of the proceedings,” the District Court approved the “immediate relief” measures for the District of Utah.
According to the senators, the SEC’s actions in prosecuting the cryptocurrency company were “unethical and unprofessional,” and this kind of behavior “is inexcusable” from any government agency:
“It is unacceptable that any federal agency could behave in such an immoral and unprofessional way, particularly one that is frequently involved in very important legal procedures and which, during your term as head, has frequently sought to fulfill its regulatory role by means of enforcement actions instead of rulemakings.”
The letter goes on to say that the commission’s statement implies carelessness, which is an “unacceptable” and “deeply worrisome” response from the agency, and that it was proper to point out that the SEC lawyers had supplied false information after the commission became aware of it.
Finally, the senators concluded their letter by stating that the handling of the DEBT Box case casts doubt on the SEC’s ability to safeguard investors, weakens public trust in the commission, and draws attention to other instances like it. This document included:
“Other enforcement cases initiated by the Commission may need attention, as this case demonstrates. Weak evidence, mistakes, or outright deception may be supporting other cases, but it’s hard to know for sure.”
An investigation into DEBT Box’s possible role in a fraudulent cryptocurrency scheme led the SEC to pursue legal action against the company last year. The plan reportedly included selling US investors $50 million worth of unregistered crypto asset securities.
Also Read: Changpeng Zhao Reveals His Writings After a Two-Month Absence February 10, 2024
Wallets