The biggest SEC case the crypto world focuses on is the SEC vs. Ripple.
If you haven’t followed that case, it’s a big deal. Why?
Because attorneys, experts, and analysts believe that the decision by the judge could set a precedent across the entirety of the crypto universe by, in effect, determining if a crypto (some or all) is a security.
But recent comments from another cryptocurrency court case – Voyager’s ($VGX) sale to Binance.US – are not receiving much attention, but what was said is exceptionally significant.
The SEC filed a limited objection to the Voyager-Binance.US deal last month (other State regulatory agencies are also involved in their objections), citing legal violations.
From Reuters: The SEC, which has objected to the sale, is currently investigating whether Voyager’s crypto lending business involved the sale of unregistered securities. It has raised concerns in court filings that Voyager cannot prove that the Binance deal or any other crypto transaction complies with U.S. securities law.
Judge Wiles asked the SEC’s attorney if the Voyager sale violated securities laws.
And this is where it gets interesting. The SEC’s attorney responds, “We can’t take a position at this point. The SEC is a deliberative body, and its process is a nonpublic one by federal law.”
The judge is unhappy and responds, “Deliberative is one thing, but what have you done? If there are reasons to be concerned here, I need to hear specifics.”
Popular Voyager investor/hodler summarized Judge Wiles’ comments to the SEC: “You’re asking the debtor to prove that the cryptos being transacted are not securities, but you’ve given no regulatory guide as to what that is.“
More attention is being brought to the recent comments from the SEC’s attorney and Judge Wiles and how they could affect what happens with the SEC vs. Ripple case.
Crypto advocates believe that the SEC’s stance of not taking a position and the judge’s comments that regulatory guidance isn’t there may add fuel to Ripple’s case and end the SEC’s perceived crusade against crypto.