US Securities and Exchange Commission fined for "Abuse of power"

The US Securities and Exchange Commission (SEC) was fined a hefty $1.8 million in the Debt Box case after a court ruled the regulator had flagrantly abused its power and wrongly froze the funds.

The Securities and Exchange Commission (SEC) goes from plaintiff to defendant!

Reminder, accused The United States Securities and Exchange Commission (SEC) accused Debt Box of selling "node licenses" without prior authorization, enriching itself to the tune of $49 million. As a result, authorities froze the company's assets. This angered Judge Robert Shelby, who said it was a “gross abuse of power”:

“The (SEC) is deliberately spreading lies. (…) We must not allow false arguments to continue to be presented.”

The affair has already led to the resignation of two SEC lawyers, who were forced to resign under threat of dismissal. As a result, Debt Box requested compensation from the financial authority. After that, the latter forced him to stop his business activities and spend large sums of money on his defense.

Another consequence for the SEC is this fine which was set at $1.8 million. The judge based his decision on an earlier ruling that the FCA had acted in “bad faith”.

👈Read more: The Securities Commission is asking for $2.6 billion to control the digital currency market!

Therefore, the SEC will have to pay all legal costs forDebt Box Company. In addition to other costs associated with the trial. It should also be noted that the complaint from the Financial Commission was rejected and considered closed. If the authority wishes to intervene again against the Debt Box, it will first need the approval of Judge Robert Shelby.

This is of course a slap in the face to the SEC, which confirms that its powers are not and should not be absolute. The freezing of company assets is in fact reserved for the most serious cases. In the Debt Box case, the measure was considered particularly excessive.

Is the SEC in an unenviable position?

Besides, this isn't the first time you've met him. Financial Regulatory Authority Anger from the court over the cases it is handling against cryptocurrency companies. Many commentators have pointed out that his actions have sometimes been considered hasty. Additionally, there appears to be a turnaround in the United States.

As cryptocurrencies enter the political spotlight and are already becoming an election campaign issue in the country, the future of the organization led by Gary Gensler looks increasingly bleak.

As the regulatory body constantly intensifies its measures, Donald Trump is looking for a way to pay off the country's debts using Bitcoin. Meanwhile, approvals this year of ETFs for Bitcoin and Ethereum show the regulatory challenges facing Wall Street cops.

👈Read more: Securities Commission Approves Ethereum ETFs

So the SEC's reign over cryptocurrencies may be coming to an end, or its stances may have softened. This would be good news for the US cryptocurrency ecosystem, which has been hit hard in recent years.