Cryptocurrency: Fights Back Against WarOnCrypto

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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
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Joined February 2022

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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...
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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...
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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
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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…
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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...
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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.
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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.
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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
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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
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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.
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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.
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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."
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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.
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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...
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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.
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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...
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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."
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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?
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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.
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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.
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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.
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