Dec. 01, 2021
I am writing to express my deep concern about the Securities and Exchange Commission (SEC) and their actions regarding digital assets. They have harmed investors and innovation with their approach. They are obviously picking winners and losers in this space. They are doing this by selective enforcement by litigation and colluding with their chosen winners. This is kingdom building on the backs of investors and innovators. I am trouble that Congress has allowed the SEC to continue their draconian actions. There are many conflicts of interest with SEC employees leaving the agency and going to work for organizations where they harmed competition with an SEC lawsuit before leaving the agency. How is this ethical or permissible? Please read this Twitter chain to show questionable actions by SEC officials. https://protect2.fireeye.com/v1/url?k=ef7454b6-b0ef6da0-ef74b000-8681d5b5fa8e-eef034929205d40b&q=1&e=14e313a9-8a85-4d9b-a8a2-089e36c85df2&u=https%3A%2F%2Ftwitter.com%2Fjohnedeaton1%2Fstatus%2F1461479162460479488%3Fs%3D21 Also please read this investigative article from Fox Business. https://protect2.fireeye.com/v1/url?k=cdecf961-9277c077-cdec1dd7-8681d5b5fa8e-f908bc7cd99478e0&q=1&e=14e313a9-8a85-4d9b-a8a2-089e36c85df2&u=https%3A%2F%2Ft.co%2FtrWxTBw7MZ The above references show people and the media are waking up and asking tough questions about the SEC and their questionable practices in this space. These articles and facts prove the SEC should be removed immediately from cryptocurrency regulation framework and oversight. The Ripple Labs lawsuit needs to be settled. In fact, to restore public trust, the SEC should be investigated by the OIG and GAO; crypto regulation should be crafted by Congress; and the oversight of crypto should be given to CFTC. It’s not like there are no options in the halls of Congress to consider, why is Congress letting the SEC regulate through enforcement litigation? This is irresponsible. It’s obvious the SEC is not seeking solutions that lead to innovation, level playing fields and investor protection. Why not consider Hester Pierce’s Safe Harbor proposal? https://protect2.fireeye.com/v1/url?k=abe8fe95-f473c783-abe81a23-8681d5b5fa8e-749deca0f12d8102&q=1&e=14e313a9-8a85-4d9b-a8a2-089e36c85df2&u=https%3A%2F%2Fwww.google.com%2Famp%2Fs%2Fwww.coindesk.com%2Fpolicy%2F2021%2F04%2F20%2Fstate-of-crypto-unpacking-hester-peirces-newest-safe-harbor-proposal%2F%253foutputType%3Damp Why not adopt the Digital Commodity Exchange Act (DCEA)? https://protect2.fireeye.com/v1/url?k=d9166a0f-868d5319-d9168eb9-8681d5b5fa8e-07234ad8b303e338&q=1&e=14e313a9-8a85-4d9b-a8a2-089e36c85df2&u=https%3A%2F%2Ftwitter.com%2Fhouseaggop%2Fstatus%2F1460720718375759876%3Fs%3D21 Why not adopt Token Taxonomy Act? https://davidson.house.gov/2021/3/davidson-reintroduces-token-taxonomy-act Why not adopt the Blockchain Regulatory Certainty Act? https://emmer.house.gov/2021/8/emmer-introduces-legislation-to-provide-clarity-for-blockchain-innovators Instead of helping Congress craft legislation, the current SEC Chair has decided to falsely state that current securities laws are clear when it comes to Crytpo. Other SEC commissioners disagree. https://financialinstitutions.bakermckenzie.com/2021/07/15/commissioners-pierce-and-roisman-bemoan-secs-failure-to-provide-sufficient-guidance-on-explaining-which-tokens-are-securities/ If the laws are so clear, why did it take 7 years before the SEC filed a lawsuit against Ripple Labs? Why did FinCEN and the DOJ call XRP a virtual currency? Why is Etherium not a security? Where is the accountability from the SEC to retail investors for their lack of action for 7 years on such clear security laws? Please read the below synopsis for your reference about the negative impact the SEC created to retail investors as a result of their actions. https://protect2.fireeye.com/v1/url?k=bc176dde-e38c54c8-bc178968-8681d5b5fa8e-c3b2b53bfd9062f1&q=1&e=14e313a9-8a85-4d9b-a8a2-089e36c85df2&u=https%3A%2F%2Fwww.crypto-law.us%2Fvideo-library%2F The SEC is preventing innovation, hurting retail investors and created uncertainty in the marketplace. How can the SEC say I own a security by owning XRP? I have no investment contract with Ripple Labs. I cannot vote for their board of directors. They do not provide me financial disclosures. I purchased XRP on a cryptocurrency exchange. I purchased a digital currency or asset. My expectation of profit was to come from adoption of the currency or asset by banks or financial institutions to be used for On Demand Liquidity (ODL) and cross boarder payment settlement. Even if I wanted to purchase stock in Ripple Labs, I could not because of the accredited investor laws. I would have to wait until Ripple Labs goes public through an IPO. But the SEC killed my investment in XRP because they filed a lawsuit after 7 years of trading to now claim it is a registered security! I do not have a relationship with Ripple Labs. To wait 7 years to come to this conclusion is pure incompetence by the SEC if the rules are so clear! The SEC has proven they have agendas and cannot create laws in an objective and fair way. The CFTC should be the agency to take on oversight. https://www.coindesk.com/policy/2021/10/27/cftc-should-be-cryptos-primary-cop-acting-chair-says/ I have never wrote my representatives. I have never wrote a government agency. I have never used social media to post anything until this lawsuit against Ripple Labs. I am beyond upset on how the SEC has handled this new asset class. The colluding with select market makers; the excluding of market participants; the conflict of interest; the questionable ethics; the negative propaganda campaign to lawmakers and the public; the draconian regulatory environment; and more have pushed me to resort to fight for action. There are a lot of investors being harmed by the SEC. I have asked my representatives to intervene. OIG and GAO investigations are required to restore the public trust in the SEC. Thank you for your time. Sent from my iPhone