The United States Securities and Exchange Commission (US SEC) has reportedly gained a massive win in its legal suit against Rivetz, a mobile crypto wallet provider. This case has supposedly strengthened the edifice of regulations in the crypto arena under the leadership of SEC Chair Gary Gensler.
Rivetz Lawsuit: A Success for the US SEC
Sources report that the case began in 2021, holding the company responsible for selling unregistered securities. The case was based on the company’s Initial Coin Offering (ICO) in 2017, which made a reported $18 million. The US SEC stated that Rivetz had gone against Sections 5(a) and 5(c) of the Securities Act of 1933 by holding the ICO without the required registration, promoted by Rivetz’s CEO, Steven Sprague.
In an important ruling, U.S. District Judge Mark Mastroianni greenlighted the US SEC’s motion for summary judgment, deciding in favour of the regulator without a trial. The ruling stated that Sprague needed to present a judgment by October 22, 2024, and could raise any objections to the ruling by November 5, 2024.
The case against Rivetz also comprised speculations that the ICO earnings were misused. News sources report that Sprague gained $1 million as a bonus and an additional $2.5 million as a loan to buy property in the Cayman Islands.
Legal Battles in the Crypto-Verse
The US SEC’s triumph in the Rivetz case is one of the several legal battles the body has come across in the crypto industry. The agency, under Gary Gensler, has reportedly taken an austere approach to crypto regulation, focusing on firms and individuals who it believes have acted against securities laws.
One of the most significant present cases is that of Ripple, a blockchain company blamed for selling unregistered securities in the form of XRP. The US SEC reportedly filed a case for $2 billion in penalties. However, Federal Judge Analisa Torres decided that Ripple would only need to pay $125 million in fines.
The US SEC has also begun legal action against large crypto exchanges Binance and Coinbase. In 2023, the agency filed a case against Binance Holdings Limited and its founder, Changpeng Zhao, as the company worked as an unlicensed securities exchange within the United States. The case is still in the court, with Binance actively building an argument against the allegations.
Moreover, Coinbase has also been targeted by the US SEC. The platform was acting as an unregistered broker. Coinbase has refuted the allegations, stating that the US SEC has not been consistent in enforcing crypto-related regulations. The exchange further claimed that the regulatory body had not provided vivid guidelines for crypto companies to comply with the legal framework.
Political Pressure and the Future of Crypto Regulation
As the 2024 presidential comes closer, both Republican and Democratic candidates are focusing on cryptocurrency regulation. With myriads of voters involved in the crypto industry, politicians are driven to gain their support by taking transparent stances on the issue. This political traction has also steered more scrutiny of the US SEC’s actions under Gary Gensler.
Sources report that recently, US lawmakers have pressurized Gensler to give more clarity on the SEC’s views on crypto regulation. Senator Cynthia Lummis, an avid advocate for digital assets, has been especially critical of the US SEC’s policies. She states that the agency has obstructed innovation in the crypto market by not giving guidance beforehand and by taking a stricter approach to compliance.
Conclusion
As the US SEC carries forward with its legal battles with multiple crypto bodies, the results of these lawsuits will design the future of crypto regulation in the United States.
In summary, the US SEC’s success in the Rivetz case is a massive step ahead in the overall tensions regarding crypto regulation. As more cases appear, the regulator’s strong standing is expected to shape the ecosystem of the crypto industry in the United States. Learn more about crypto regulatory updates with TurkishNYRadio.
