Crypto News Today- Crypto Sector Rejoices as SEC Faces $1.8 Million Penalty for ‘Gross Abuse’ of Power

Crypto Sector Rejoices as SEC Faces $1.8 Million Penalty for ‘Gross Abuse’ of Power

Crypto News– In another setback for the Securities and Exchange Commission’s (SEC) efforts in the crypto sphere, a judge has ordered the regulator to pay $1.8 million following its unsuccessful lawsuit against DEBT Box. The SEC had accused the crypto mining firm of deceiving investors in a purported fraudulent scheme that raised $50 million in Bitcoin and Ethereum. However, Utah District Court Judge Robert Shelby ruled the case as lacking merit, leading to the SEC being held liable for legal expenses.

Judge Shelby had previously criticized the SEC’s actions in March, labeling them as a gross abuse of the power entrusted to it by Congress. DEBT Box hailed the ruling as a monumental victory, with its chief marketing officer Miguel Francis-Santiago emphasizing its significance for the broader Web3 industry.

Laura Sanders, policy counsel for the Blockchain Association, expressed hope that the penalty would dissuade the SEC from employing unfair tactics in enforcement actions. While Amanda Tuminelli, chief legal officer of the DeFi Education Fund, noted that the court could have taken a stronger stance, she indicated DEBT Box’s potential for success if the case were retried.

Under the leadership of long-time Chair Gary Gensler, the SEC has been unwavering in its crackdown on the crypto industry, filing lawsuits against numerous companies over allegations of selling unregistered securities in recent years. However, it has faced criticism from both industry insiders and lawmakers for being overly aggressive in its approach.

Last week, in an unexpected move, both Democrats and Republicans joined forces to call for a more defined regulatory framework for the crypto sphere—a longstanding request from the industry directed towards the SEC.

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