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SEC Sued By Crypto-Focused Law Firm, Nouriel Roubini Tweets Sarcastic Comment

Legal

u.today 24 November 2022 11:41, UTC
  
Reading time: ~3 m

Economist Nouriel Roubini, also known as "Dr. Doom" for his accurate prediction of the mortgage market crisis of 2008-2009, who is also a vocal hater of crypto, has taken to Twitter to extend his disgust at the cryptocurrency space.

He has shared a link to an article on LinkedIn about crypto-focused firm Hodl Law PLLC that has sued the U.S. Securities and Exchange Commission, saying that this is based on "totally bogus arguments." Among them, according to Roubini, is an accusation against the SEC about the recent collapse of FTX.

As a reminder, the SEC has been involved in a lawsuit against Ripple Labs and XRP, claiming the latter to be an unregistered security and suing Ripple's top executives for selling it to investors.

"Crypto crooks now blame SEC"

In his scornful comment, Roubini referred to a LinkedIn post by John Reed Stark, president of John Reed Stark Consulting and former chief of the SEC Office of Internet Enforcement.

Stark, as a lawyer and former high-ranking SEC executive, has slammed the legal complaint against the securities regulator, calling it "perhaps one of the most ridiculous legal documents" he has ever read that were related to the crypto space.

Basically, the crypto law firm accuses the SEC of three things: lack of regulatory clarity provided to the crypto space, violating the rights of legally approved crypto-financiers and "failing to provide 'fair notice' of its anti-crypto posture." Besides, the SEC exceeds its authority by practicing "regulation by enforcement" and stifling innovation in the sphere of digital currencies and blockchain.

The complaint, in particular, states that the SEC has no jurisdiction over digital assets from the U.S. Congress and that the SEC's entire strategy has been "to be deliberately 'confusing' in order to maintain maximum flexibility to prosecute at will (and without fair notice)." The complaint also looks into the SEC's attempt to classify the digital assets of companies attacked by it as securities, while it long ago labeled Ethereum's ETH as a nonsecurity.

Defendant has refused to provide public guidance on its subjective belief regarding the classification status of the Ethereum Network and Ether DCU despite thousands of requests from the American public.

Roubini and Calvin Ayre tweet sarcastic comments

Nouriel Roubini, a well-known critic of cryptocurrencies, stated in his tweet that the plaintiff is blaming the "FTX debacle and coming crypto extinction" on the securities regulator.

John Reed Stark on LinkedIn: Crypto-focused law firm Hodl Law PLLC has sued the U.S. Securities ..
based on totally bogus arguments. Crypto crooks now blame SEC for FTX debacle and coming crypto extinction. What a pile of crypto manure pseudo-arguments! https://t.co/bFRJik8NJ7

— Nouriel Roubini (@Nouriel) November 24, 2022

For him, the arguments mentioned in the complaint are "pseudo-arguments." Billionaire and supporter of Bitcoin SV chain (as well as of self-proclaimed Satoshi Nakamoto Craig Wright) Calvin Ayre tweeted to agree with Roubini. He wrote that this legal suit is likely to harm the entire crypto space as it "underlines how moronic most everything in crypto is." Besides, he called the name of Hodl Law PLLC a "ponzi trick to retail consumers in crypto."


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