“Former CFTC Chairman Endorses SEC’s Lawsuit Against Terraform Labs and Do Kwon”

Together, they highlight the unique advantage that Bitcoin draws from its status as the oldest, most established and most decentralized protocol and from a surprising new opportunity to harness that.

Timothy Massad, now a research fellow at Harvard’s Kennedy School of Government, said that U.S. bank regulators have the ability right now to create a framework that could license stablecoin issuers.

Former CFTC Chairman Endorses SEC's Lawsuit Against Terraform Labs and Do Kwon
Former CFTC Chairman Endorses SEC’s Lawsuit Against Terraform Labs and Do Kwon

The U.S. Securities and Exchange Commission (SEC) is right to go after stablecoin issuer Terraform Labs.

Former SEC Chair, Christopher Massad, believes that the SEC was right to file charges against the company that promised investors a 19-20% return on their investment in a new token. “When you solicit people to invest in a token promising them a 19% to 20% return, that’s a security,” said Massad.

This week, the SEC filed a complaint against the Singapore-based crypto company and Kwon, claiming they mislead investors about the terraUSD (UST) algorithmic stablecoin.

According to the complaint, Terra and Kwon engaged in fraud, the sale of unregistered securities and the sale of unregistered security-based swaps. The Terra ecosystem collapsed in mid-2022, with reverberations subsequently felt throughout the crypto industry. Kwon is currently being sought by Interpol.

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