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The SEC was alleged to have filed a subpoena on a speaker at a crypto conference last month. It is revealed that Terraform's Do Kwon was the beneficiary.
At The Crypto Conference, The SEC Served Terraform's, Do Kwon
Terraform Labs and Do filed a subpoena against the SEC, alleging that the two subpoenas were ‘improperly issued and served.’
It goes on to say that the ṭhe government failed to keep its study of Terraform's mirror protocol private.
Do previously disputed receiving The Defiant's subpoena. Terra's spokeswoman declined to comment today.
Terraform Labs is the company behind the algorithmic stablecoin Terra; Terra maintains its peg to the dollar using a method that destroys LUNA, the 12th-largest cryptocurrency by market cap.
Concerns related to Terraform Labs Project: Mirror Protocol
As concerned as the SEC and other financial authorities are about stablecoins, it's a similar Terraform Labs initiative called Mirror Protocol that has piqued the agency's interest.
Mirror, which will be launched in December 2020, is a platform for producing synthetic replicas of equities. These synthetic assets are similar to stablecoins, except they reflect the price of stocks rather than currencies.
So, instead of purchasing Tesla stock, you may purchase mTSLA.
When Mirror first debuted, Do emphasize the value of such assets, which “let individual investors globally to more readily engage in the US equity market”.
However, if ordinary investors in the United Stāṭēs were permitted to use the platform - which they are - Terraform would be obliged to register the product with ṭhe Securities and Exchange Commission (SEC) since stocks are secure, or tradable investment contracts.
There is no evidence that Terraforms registered the assets with the SEC.
The suspense surrounding the subpoena’s addresses drew more attention to the gaṭhering, as participants wondered what else the SEC has in store for them.
Attendees at Mainnet joked about the SEC booking a room at ṭhe Marriott Marquis Hotel, and Messari CEO Ryan Selkis told in a video interview.
"We have invited congressional staffers and regulators to this event, we would have comped many of their passes, and they choose to hide by the escalators instead of learning about what's actually going on in the industry."