That's not how regulation works with the SEC. The rules are broad and are specificly designed to not be strict so that they can be applied to new technologies and businesses.
You can say you don't like these rules or how they are applied but that's how they have been applied since their inception. This isn't new.
Sadly, the existing rules are clearly not being applied well to these "new" (10+ year old) technologies.
After, whatever decades of "the rules", new technologies have come along that have stumped "the rules". Now, the SEC has to deal with that. Instead of being an adult and having a good conversation, they are just kicking and screaming.
What's happening is that SEC is saying that you're breaking "the rules" (ie: Wells Notice to coinbase).
So, coinbase says... "ok, cool... what rules am i breaking?"
The response is: "lol, no I can't tell you that!"
So now Brian is in DC this week talking to regulators trying to get some clarity. He's posting all sorts of pictures of this on Twitter.
Comments like this and your second one below, seem so low brow and childish. Account from 2011 and 1400 karma... keep up the good work there.
Of course they can argue it, that's what is happening. They are going to sue the government. Why? Because the SEC refuses to even have a conversation about things. They've been trying, for years, to do so. This isn't some random small company, this is a public company that the SEC should be supporting with better answers than just refusing to even meet.
Worse off, along this same thread, Gensler doesn't even have basic answers to questions that he was prepared for.
You appear to be very confused about the role the SEC plays in the industry. They're not a friendly, supportive legal advice service, they're law enforcement.
In any case, even if the SEC did give out legal advice, I don't believe it would form any type of legal precedent. Nothing stops the next administration from taking a different view.
If you're a large public company knowingly entering into a regulated industry where your activities are considered by everyone to be a "a bit of a legally grey area", then litigation is the entire ball game. Do the thing, wait to get prosecuted, hope you win.
Alternatively, do some lobbying, get the law changed how you want, then do the activity. Been happening for centuries. Easy as pie.
The U. S. Securities and Exchange Commission (SEC) has a three-part mission: Protect investors. Maintain fair, orderly, and efficient markets. Facilitate capital formation.
The main purposes of these laws can be reduced to two common-sense notions:
Companies offering securities for sale to the public must tell the truth about their business, the securities they are selling, and the risks involved in investing in those securities.
Those who sell and trade securities – brokers, dealers, and exchanges – must treat investors fairly and honestly.
Given that Gensler can't even say whether or not ETH is a security, it seems questionable whether the SEC even has a role here in the discussion.
Can't is not the same thing as won't. None of us (not even Congress) are entitled to the SEC chair's opinion on anything. The job of ruling whether or not ETH is a security is one for the judiciary, not the executive.
All of this is moot anyway. We know the SEC is bringing a case against coinbase. If that case lists ETH, then we know that the SEC thinks it's a security! Congressional testimony is a weird thing to obsess about, but each to their own.
See the thing is the coinbase is lying to you. They know exactly what the problem is and so does anyone who is following this
They are selling unregistered securities.
They can argue that they are not selling securities, but that's what the wells notices is for. Things are playing out exactly as they should.
The fact that they are misleading the uninformed public is what I have a problem with, most people have no idea what the SEC does or how it works so this all seems foreign to them when it's actually perfectly normal.
You can say you don't like these rules or how they are applied but that's how they have been applied since their inception. This isn't new.