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Attorney Morgan said SEC chairperson Gensler lied by tagging most crypto assets as securities.
Pro-XRP lawyer Bill Morgan has recently slammed SEC Chair Gary Gensler over his comments on the legal status of altcoins (alternative cryptos other than Bitcoin).
Recall that Gensler reiterated that most cryptocurrencies other than Bitcoin (BTC) are securities. Industry leaders believe the statement is part of Gensler’s plan to make the SEC the primary regulator for the crypto industry.
Gensler’s remarks have continued to attract backlash from crypto enthusiasts, with several individuals asking the former investment banker to disclose how he concluded. However, Gensler has so far failed to indulge these requests.
Attorney Morgan Faults Gensler’s Remark
In a tweet on Tuesday, attorney Morgan asserted that the SEC boss lied by saying that most crypto assets other than Bitcoin are securities.
The SEC doesn’t know how many are digital asset securities because the SEC could not possibly have investigated 20,000 digital assets. Gensler saying all cryptos other than Bitcoin are securities is just lies. His SEC attorneys could not have advised him to make such a statement https://t.co/gOz17BLqMm
— bill morgan (@Belisarius2020) May 30, 2023
Per Morgan, the SEC has no idea about the number of digital currencies that constitute securities because it is impossible for the commission to analyze over 20,000 cryptocurrencies to determine the assets that fall under its regulatory purview.
Morgan does not believe the commission’s attorneys advised Gensler to issue such a statement about altcoins (alternative cryptocurrencies other than Bitcoin).
Crypto Enthusiasts React to SEC’s Recent Settlement Announcement
Morgan made the comment in response to a tweet by Jesse Hynes, founder of equity crowdfunding platform Speedstarter. On May 30, the SEC reported that former Coinbase executive Ishan Wahi and his brother, Nikhil Wahi, agreed to settle insider trading charges.
The SEC noted that the duo engaged in a fraudulent scheme that saw them trade “at least nine crypto asset securities” ahead of major announcements regarding the tokens listed on Coinbase.
Commenting on the development, Hynes asked what stopped the SEC from disclosing the exact number of “crypto-asset securities” Wahi and his brother traded.
“At least nine”. While I agree with the end result of litigating against the crooked people who game the system, if the rules are so clear, why don’t we have an exact number? What is it? Nine? Ten? Twenty? If so clear, why is there no definite https://t.co/aUOuizbihW
— Jesse Hynes 🌱 (@jesse_hynes) May 30, 2023
In addition, an XRP community member asserted that the SEC might use the statements from the former Coinbase executive to strengthen its enforcement actions against crypto projects.
However, Morgan does not think the SEC can use the statements as evidence. He noted that the Wahi brothers only agreed not to deny the SEC’s allegations and never admitted that the tokens were securities.
He added that even though they admitted the tokens are securities, the SEC cannot use the statement as evidence in other lawsuits.
The defendants agreed not to deny the SEC’s allegations. That does not mean they admitted that any asset is a digital asset security & even if they did admit specific allegations about the 9 assets being securities that is not an admission that can be used in other lawsuits. https://t.co/bIX070ycYS
— bill morgan (@Belisarius2020) May 31, 2023