nitter Logo MetaLawMan @MetaLawMan UVa | Vanderbilt Law. Your guide to other worlds: Crypto l Metaverse | Web3. Not legal or financial advice. I am A lawyer--just not YOUR lawyer. USA MetaLawMan.io Joined February 2022 Tweets 1,507 Following 127 Followers 15,956 Likes 808 42 Photos and videos Tweets Tweets & Replies Media Search Pinned Tweet MetaLawMan @MetaLawMan May 3 1/ If the SEC follows through on its threat to sue @Coinbase, I believe the SEC will lose. The SEC's case has a fatal flaw. And the problem is entirely of @GaryGensler's own making. Let me explain... 183 637 76 2,927 Show this thread MetaLawMan @MetaLawMan 8h The SEC's complaint against @Binance has been flagged for failure to comply with court rules. The rules require the complaint to list the full residence address of each party--including the defendants (Binance, CZ et al). Getting those addresses could be easier said than done. MetaLawMan @MetaLawMan Jun 5 1/ BREAKING: SEC sues Binance HEADLINE: The SEC complaint identifies 10 tokens it deems to be unregistered crypto asset securities. The target list includes some of the biggest names in crypto: $SOL, $ADA, $MATIC, $FIL, $ATOM, $SAND, $MANA, $ALGO, $AXS, and $COTI. more... Show this thread 44 130 23 571 MetaLawMan @MetaLawMan 11h Here is more detail explaining why I believe the SEC will lose its case against @Coinbase. MetaLawMan @MetaLawMan May 3 1/ If the SEC follows through on its threat to sue @Coinbase, I believe the SEC will lose. The SEC's case has a fatal flaw. And the problem is entirely of @GaryGensler's own making. Let me explain... Show this thread 16 43 2 208 MetaLawMan @MetaLawMan 12h BREAKING: SEC sues @Coinbase The SEC alleges that Coinbase has acted as an illegal unregistered securities exchange since 2019. But, In April of 2021, the SEC approved Coinbase going public with a listing on NASDAQ. And, In May of 2021, SEC Chairman Gary Gensler testified… nitter.pw/i/web/status/166… 217 873 57 3,722 MetaLawMan @MetaLawMan 12h 1/ The SEC's complaint against @Binance asks for unusual temporary and preliminary injunctive relief. This means the SEC may seek a Court order directing that certain things happen soon--before trial. The SEC did Not seek this relief in the @Bittrex case. Let me explain... 15 52 3 263 MetaLawMan @MetaLawMan 12h 2/ The SEC complaint asks the Court to order: -an asset freeze -repatriation of customer assets to the U.S. and -appointment of a Receiver, among other things A court may appoint a Receiver (like a Trustee) if there is a risk of loss of assets, destruction of evidence or fraud. 4 3 1 66 MetaLawMan @MetaLawMan 12h 3/ Whether the SEC seeks a Receiver to control operations at @Binance or @BinanceUS (or both) is unclear in the complaint. Either way, it would be a seismic event in the world of crypto if the SEC were to obtain a court order taking some control of Binance out of CZ's hands. 1 1 1 58 MetaLawMan @MetaLawMan 12h 4/ To get a pre-trial injunction, the SEC would have a high burden to show a "substantial likelihood" it would win on some of its claims at trial. The SEC's claims generally require proof that securities are traded on Binance platforms. So, to get an injunction, the SEC would 1 1 59 MetaLawMan @MetaLawMan 12h 5/ need to persuade the judge that some of the tokens cited in the complaint are securities. Which means, it might make sense for holders of those tokens to enter the case to oppose a ruling that their tokens are securities. It might be time for the Bat-Signal to @JohnEDeaton1 11 8 1 137 MetaLawMan @MetaLawMan Jun 5 1/ The SEC complaint against @Binance appears to solve the mystery of why Brian Brooks abruptly resigned as CEO of @BinanceUS in 2021. CZ allegedly reneged on promises that Brooks would be given autonomy to run Binance.US independently from @Binance. 31 115 6 579 MetaLawMan @MetaLawMan Jun 5 2/ The Complaint cites an unnamed source who ran @BinanceUS briefly in 2021. We know from the dates in the complaint that the source must be Brian Brooks, who ran @BinanceUS for 3 months in mid-2021. The complaint quotes testimony Brooks gave about his brief stint as CEO. 3 8 110 MetaLawMan @MetaLawMan Jun 5 3/ Brooks testified that CZ broke promises made to him in the recruitment process. As Brooks put it: "I realized, huh, I'm not actually the one running this company, and the mission that I believe I signed up for isn't the mission. And as soon as I realized that, I left." 1 14 1 135 MetaLawMan @MetaLawMan Jun 5 4/ The quick departure was a wise move by Brooks as he was able to exit with his reputation intact. And he is now positioned as a witness rather than a target of the SEC enforcement action. Brooks, a former Comptroller of the Currency, is a respected proponent of crypto. 8 9 1 172 MetaLawMan @MetaLawMan Jun 5 1/ BREAKING: SEC sues Binance HEADLINE: The SEC complaint identifies 10 tokens it deems to be unregistered crypto asset securities. The target list includes some of the biggest names in crypto: $SOL, $ADA, $MATIC, $FIL, $ATOM, $SAND, $MANA, $ALGO, $AXS, and $COTI. more... 697 1,168 190 4,434 MetaLawMan @MetaLawMan Jun 5 2/ The SEC also alleges that Binance issued unregistered securities $BNB and $BUSD. The SEC is taking the position that the 10 identified TOKENS TRADED ON THE SECONDARY MARKET ARE THEMSELVES SECURITIES. I will be back shortly with my key takeaways from the 136 page complaint. 26 77 5 704 MetaLawMan @MetaLawMan Jun 3 1/ A Modest Proposal to Reform the SEC. The draft Digital Assets Bill released yesterday by Congressmen @PatrickMcHenry @RepFrenchHill & @CongressmanGT presents-- A Golden Opportunity to begin to reform the SEC and rein in its tendency for regulatory overreach. Here's how... 26 124 12 420 MetaLawMan @MetaLawMan Jun 3 2/ Amend the Bill to say: "At the conclusion of every litigated SEC case, the Court shall determine which party is the 'prevailing party.' If the Court determines that the Defendant is the prevailing party, then the SEC shall pay all attorneys fees incurred by that Defendant." 4 19 200 MetaLawMan @MetaLawMan Jun 3 3/ This would mean that--if @Ripple were to prevail in its case with the SEC--the SEC would be required to reimburse Ripple its $200 million in legal fees. If the SEC loses, why should they be able to just shrug and move on after inflicting such enormous damage on a defendant? 13 36 4 296 MetaLawMan @MetaLawMan Jun 3 4/ Benefits of this reform: 1. The SEC will need to think carefully before bringing weak cases because there would now be some real consequences for losing. 2. A defendant who has done nothing wrong would be less likely to just settle if they can recover their fees in the end. 4 14 191 MetaLawMan @MetaLawMan Jun 3 5/ More: 3. If the SEC loses a case, why should a corporate defendant (and its investors) or an individual be stuck with the bill for the SEC's mistake? 4. This is a pro-investor reform. 5. We already have fee-shifting provisions just like this in other federal statutes. 4 14 176 MetaLawMan @MetaLawMan Jun 3 6/ My hope is that the Crypto Bill's architects @PatrickMcHenry @RepFrenchHill & @CongressmanGT will give this Friendly Amendment some consideration. Let's not miss this Golden Opportunity to reform the SEC. Patrick McHenry @PatrickMcHenry Jun 2 This discussion draft is a critical first step toward much-needed clarity for the digital asset ecosystem. I encourage the public to provide constructive feedback to help us get this right. Thanks to @CongressmanGT, @RepFrenchHill, and @RepDustyJohnson for your partnership. 4 27 166 Load more