- Well-known lawyer Thomas Gorman declares that current SEC lawsuits in the crypto space were all “winnable.”
- Gorman states that crypto entities want to be treated differently, even though there is no need for differential treatment.
- “I think Gary has a very well-laid-out agenda. People who are not listening to him are going to regret that,” said Gorman.
In a recent interview, Thomas Gorman, Partner at the American law firm Dorsey & Whitney, defended the SEC’s scrutiny of the crypto industry, claiming its lawsuits were all “winnable.” Notably, Gorman specializes in defending SEC investigations and enforcement actions and criminal white-collar securities cases.
“I think Gary has a very well-laid-out agenda. People who are not listening to him are going to regret that,” said Gorman, responding to the questions posed by hosts Matt Miller and Kailey of Bloomberg Crypto.
Gorman explained that the rules regarding digital assets were very clear despite the current confusion in the market. The rules, he said, have been in the books for decades, with most of them emanating from a 1946 Supreme Court case. This was a reference to the SEC vs. Howey case of 1946, where it was decided that if a transaction was found to be an investment contract, it would be considered a security.
When asked if the rules that were set in the 1940s would still apply to the recently built digital assets, Gorman responded with a resounding yes, adding that all the current cases such as the SEC vs. Ripple case were winnable for the SEC.
I think these cases are very winnable for the SEC. They are really very cut and dry. The Howey rules are very simple. You take people’s money, you pool it someplace, promise them profits from the pooling process, and you give it back — it’s a security.
Gorman added that people who have been working in the space for years have known about the implications of the Howey rules but chose to ignore them, and that some of the bigger platforms only feign compliance. According to the lawyer, crypto wants to be treated differently but shouldn’t be provided with differential treatment. “It’s a different kind of a security but securities laws have been designed for decades, whatever variations come out.”
The lawyer went as far as to say that the people in crypto were purposely trying to change the current rules so that the resulting guidelines would give out less information, and subsequently, less investor protection.
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