John McAfee on SEC : “They have no lawful right to interfere” with the crypto space
Crypto enthusiast, John McAfee, in a recent tweet shared his view on Securities and Exchange Commission (SEC)’s quest to regulate the crypto space. McAfee insisted that it has no “lawful right” to do so.
McAfee shared his view as the news of U.S court dismissing SEC’s against Blockvest, decentralized blockchain-based assets exchange, surfaced. He shared the news and stated, “The SEC loses its first legal battle in its unlawful quest to regulate the Crypto space. As I pointed out, they have no lawful right to interfere with us. I can hardly wait for them to tangle with me. We are winning people.”
Later, he added that some are warning him against “opposing the SEC and point to Elon Musk’s submission to them as an example I should follow.” However, McAfee is not ready to take a back seat as he believes that he knows SEC well and “who they are”.
SEC trying to regulate the space is not new, in fact, they have tasted success in some recent cases as two ICO startups recently agreed to register tokens as securities after settling charges with SEC.
The two firms namely CarrierEQ Inc., also known as Airfox, and Paragon Coin Inc. conducted the token sales last year, with Airfox raising around $15 million and Paragon around $12 million through the sales.
According to SEC’s statement, neither of the firms registered their ICOs according to the federal securities laws, nor did qualified for an exemption to the registration requirements. SEC Enforcement Division co-director Stephanie Avakian said, “We have made it clear that companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities.”
In case of Blockvest’s Initial Coin Offering (ICO) which SEC suspended via an emergency court order in October. In fact, U.S. District Court for the Southern District of California even issued a temporary asset freeze against Blockvest after that.
However, just recently, the court ruled that SEC had “failed” to demonstrate that the mentioned tokens are actually securities, according to the Howey Test. This new development in the case looked like a ray of hope to McAfee who has always been quite vocal about his disliking towards SEC’s interference with the space.
He tweeted on December 4, “Is the SEC toxic to the investment environment in America? Not just America. That seeping postule of an agency reaches to every corner of the earth, turning creativity, hard work and honest ventures into withered trophies.”
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