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FOIA Request Casts Light on SEC’s Cryptocurrency Approach

Published 26/09/2023, 08:55
FOIA Request Casts Light on SEC’s Cryptocurrency Approach
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  • Empower Oversight is working to enhance accountability within the SEC.
  • They initiated a recent FOIA request regarding the SEC’s approach to cryptocurrencies, including Bitcoin, Ether, and XRP.
  • Empower Oversight focuses on promoting transparency in government actions.

Empower Oversight has initiated a noteworthy effort to enhance accountability within the Securities and Exchange Commission (SEC). This act involves a recent Freedom of Information Act (FOIA) request with the goal of shedding light on the serious matter surrounding the SEC’s approach to cryptocurrencies, specifically Bitcoin, Ether, and XRP. Empower Oversight is an organization committed to promoting transparency in government actions.

The FOIA request arises in response to statements made by former SEC Chairman Jay Clayton during his tenure. Clayton, who previously led the regulatory body, asserted that Bitcoin and Ether should not fall under the SEC’s purview as securities. Nevertheless, the SEC subsequently took legal action against Ripple, a cryptocurrency firm, contending that its digital asset, XRP, indeed constituted a security.

This apparent inconsistency in the SEC’s stance on cryptocurrencies has triggered questions regarding the agency’s rationale and decision-making processes. Empower Oversight’s FOIA request is aimed at uncovering the undisclosed communications that may provide insights into these inconsistencies.

Adding an additional layer of complexity to the situation is Clayton’s post-SEC career trajectory. After leaving the SEC, Jay Clayton joined One River Asset Management, a cryptocurrency hedge fund with a predominant focus on Bitcoin and Ethereum. These two cryptocurrencies notably benefited from the SEC’s position that they were not subject to enforcement actions as securities.

The recent release of documents pertaining to potential conflicts of interest in the SEC’s handling of cryptocurrency enforcement decisions has raised further doubts about the agency’s actions.

Bill Morgan, a legal expert in cryptocurrency matters, shared his perspective on this development. Morgan stated that Clayton disgraced the SEC and his position as chairman. Additionally, he also blamed Clayton for benefiting from his conflictual conduct.

The post FOIA Request Casts Light on SEC’s Cryptocurrency Approach appeared first on Coin Edition.

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