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It’s Congress, Not the SEC

It’s Congress, Not the SEC

SEC Commissioner Hester Peirce, published a hot and spicy take this week on the SEC’s recent settlement with ShapeShift. Read her full dissent.

Pierce, of course, is one of the most outspoken critics of the SEC’s attitude toward crypto assets, and this passage in her dissent is so funny that I have to print it in its entirety.

The SEC’s mantra—“Just come in and register”—is manifestly unsatisfying. You can imagine that dialogue from the future episode.

Future ShapeShift (“FSS”)Hello, I’d like to become a dealer.

SEC:  Why?

FSS:  Because I think some of the assets that I plan to deal might be deemed at some point by the SEC to be securities.

SEC:  Which ones?

FSS:   I’m not sure because I can’t really understand what criteria you use to decide whether a token offering is a securities transaction and, if it is, whether the token that was the subject of the investment contract remains a security in secondary market transactions.

SEC:  Well, if you don’t know whether you’re dealing in securities, you can’t register.  And by the way, if some of the assets you’re dealing in are not securities, you also can’t register.

FSS:  So can you help us think…

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