What is the point of the SEC?
https://www.investopedia.com/terms/s/sec.asp
The U.S. Securities and Exchange Commission (SEC) is an independent federal government regulatory agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of the securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States. It also approves registration statements for bookrunners among underwriting firms.
First and Foremost:
The SEC theoretically exists to protect investors. Unfortunately, we see how much red tape that comes with those "protections". Look at what's happening with Ripple and XRP. One breath from the SEC shakes the entire market so badly that XRP falls 50% within 24 hours. How is that protecting investors? The irony of this dinosauric system is laughable.
And now they've created a chain reaction of FUD where exchanges are delisting XRP due to this drama. Why would exchanges do this preemptively? As if delisting the coin now somehow saves them legal trouble in the future even though they already allowed trading to occur for years prior? Are exchanges being told through backchannels to delist the asset? Are Coinbase and others just running scared? Who knows.
https://www.coindesk.com/coinbase-delist-xrp-exchanges-dilemma
“They have to think – including just from a business perspective but also legal – what kind of precedent they’re setting,” he said. “If they delist one [cryptocurrency] just because a regulator accuses it of being a security, what happens the next time that happens? Have you just given the SEC the right to delist anything from your platform just because [it makes] an accusation?”
Even worse, it's been proven multiple times that information from the SEC leaks, so when they attack the cryptosphere with their nonsense the price starts dumping hours beforehand, and because these markets have such thin liquidity the profits to be made from this information are absolutely massive. They are supposed to protect investors, yet they facilitate insider trading and crash markets, seemingly on purpose. Amazing work, gentlemen; top notch.
Securities Act of 1933
This really says it all:
The Securities Act of 1933 was created and passed into law to protect investors after the stock market crash of 1929. The legislation had two main goals: to ensure more transparency in financial statements so investors could make informed decisions about investments; and to establish laws against misrepresentation and fraudulent activities in the securities markets.
Isn't that hilarious?
The law being used to attack the cryptosphere was created during the World War 2 era in response to the Great Depression. That is downright pathetic. To think that such a law could possibly encapsulate what is going on here is downright absurd.
Even more offensive, the SEC has allowed Ripple to operate for 7 years without taking any action or making any statements on the matter. How can they possibly justify this lawsuit? Especially considering we are at the very end of the administration hell bent on destabilizing everything right before they leave office? It's a sick joke, really.
If emergencies can be used to justify seizing power, then those in power will create emergencies.
It is blatantly obvious from square one that the SEC is not doing anyone any favors by attacking Ripple. Nobody wants that. Nobody needs that, and they've already crashed the market with a whisper and pissed off the entire XRP army.
Premines can only be spent once.
As much as I hate Ripple and XRP and hope it ultimately fails, I don't want it to fail simply because the SEC attacked it. I want it to fail because it lacks merit.
And if it doesn't fail? Well, that's an amazing outcome, because we are all on the same team and there is no competition here. Just because XRP started out as a shit project doesn't mean it has to end that way.
Just because all 100B XRP tokens were airdropped 80% onto the Ripple Foundation and 20% onto the founders, that doesn't mean the distribution is going to be shit forever. Once they dump those coins... they're owned by someone else, and it's not like this is a fiat currency, the XRP community demands that there will only ever be 100B coins, just like Bitcoin demands there will only every be 21M coins... and that's great. XRP could be hugely decentralized in 20 years or less.
to ensure more transparency in financial statements so investors could make informed decisions about investments
So let me get this straight... the SEC's job is to do the thing that crypto already does by design? All crypto is open source and transparent. If the SEC ACTUALLY WANTED to promote transparency and protect investors they'd hire a fleet of blockchain experts to study these things and do all the heavy lifting research for us.
That is absolutely not what they want and not what they are about. They are an organization on its last legs that is simply running around generating all the revenue they can by levying fines against any entity that broke their silly laws that were written a century ago. They've become the thing they're sworn to hate. They are a bad joke.
and to establish laws against misrepresentation and fraudulent activities in the securities markets.
Right, because when a corporation creates an asset that is 100% within their centralized control, things can go wrong, and this greed needs to be put in check. The same can not be said for crypto, which is completely outside this purview.
The SEC is just like the cops.
Police also theoretically exist to serve and protect the people, just like the SEC. Is that how it plays out in reality? Of course not. The system we have is systemically racist and targets the lower class by design. If you have money the chance that you will not get in trouble with the law skyrockets exponentially on multiple different fronts.
All those times we actually needed the cops because it was a legitimate emergency? Don't worry, they'll be there is 15 minutes to an hour.
It's the same thing with regulators. They are too damn slow and get nothing done. 7 years to launch accusations against XRP... seven... years.
How many times has a cop issued at ticket because they had a quota to get their paid vacation time? Legally, this is how modern performance incentives loophole around the laws that ban quotas, because technically vacation time isn't equivalent to their paycheck or yearly salary. Does it matter? The incentive is big enough to target citizens with force who otherwise would not be targeted with subjective discretion.
The SEC also employs this completely subjective discretion to attack whoever they feel like. They no longer exist to protect investors. That much should be obvious. They exist to collect fines and, like many other regulations that get put into place, to stop competition from moving in and disrupting the current powers that be. Good luck gentlemen, because crypto is about to knock you right on your ancient asses. Enough is enough.
The purpose of the SEC and pretty much every other regulatory agency out there has been corrupted to the core. That's exactly why we are in the situation we are in. That's exactly why Bitcoin was invented; because trust is in shorter supply than it ever has been in the history of humanity. These festering systems have been failing to scale for generations, and the answer to the problem is self governing systems that enforce themselves with incorruptible data.
Conclusion
All regulations were initially built to protect the people, but no matter what happens they will be corrupted to the core over time. Seeing as the laws that govern securities are from the World War 2 era, long before the Internet even existed, this corruption is unmatched.
The regulators and the elites of this world had their shot, and they blew it. They failed over and over and over and over and over again, and here we are, they don't get another chance. This is happening and they are not going to be happy about it. I guarantee it.
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