Prominent crypto hater slammed crypto firm that filed legal suit against SEC for harming crypto industry
Economist Nouriel Roubini, commonly known as “Dr. Doom” for correctly predicting the 2008–2009 mortgage market catastrophe and a strong opponent of cryptocurrencies, has gone to Twitter to express his disdain for the cryptocurrency industry.
Using the phrase “completely bogus arguments,” he published a link to a LinkedIn story about the crypto-focused business Hodl Law PLLC suing the U.S. Securities and Exchange Commission. According to Roubini, one of them includes a charge against the SEC for the recent collapse of FTX.
SEC Sued By Crypto-Focused Law Firm, Nouriel Roubini Tweets Sarcastic Comment
Recall that the SEC has sued Ripple Labs and XRP, alleging that the latter is unregistered security and that Ripple’s top executives are to blame for selling it to investors.
Roubini’s mocking remark was in response to a LinkedIn post by John Reed Stark, the current president of John Reed Stark Consulting and the former director of the SEC Office of Internet Enforcement.
The court action against the securities regulator has been criticized by Stark, a lawyer and former senior SEC officer, who called it “perhaps one of the most absurd legal documents” he has ever read about the cryptocurrency industry.
The crypto law firm charges the SEC three things: failing to offer “fair notice” of its anti-crypto position, providing regulatory clarity to the crypto space, and infringing the rights of legally permitted crypto-financiers. In addition, the SEC oversteps its bounds by engaging in “regulation by enforcement” and inhibiting innovation in the blockchain and digital currency sectors.
The SEC’s entire goal has been to “be purposely ‘confusing’ to maintain maximum freedom to prosecute at will (and without fair notice),” according to the complaint, which specifically claims that the SEC has no authority over digital assets from the U.S. Congress. The SEC’s efforts to classify the digital assets of the companies it has targeted as securities, despite having long since designated Ethereum’s ETH as a nonsecurity, are also examined in the complaint. “Defendant has refused to provide public guidance on its subjective belief regarding the classification status of the Ethereum Network and Ether DCU despite thousands of requests from the American public.”
The complaint is accusing the securities regulator for the “FTX catastrophe and approaching crypto extinction,” according to Nouriel Roubini, a well-known cryptocurrency opponent.
John Reed Stark on LinkedIn: Crypto-focused law firm Hodl Law PLLC has sued the U.S. Securities ..
based on totally bogus arguments. Crypto crooks now blame SEC for FTX debacle and coming crypto extinction. What a pile of crypto manure pseudo-arguments! https://t.co/bFRJik8NJ7
— Nouriel Roubini (@Nouriel) November 24, 2022
He views the justifications listed in the complaint as “pseudo-arguments.” Calvin Ayre, a billionaire and supporter of the Bitcoin SV chain and self-declared Satoshi Nakamoto Craig Wright, tweeted his agreement with Roubini. He claimed that because it “underlines how idiotic practically everything in crypto is,” this court action “is likely to destroy the whole crypto ecosystem.” Additionally, he referred to the moniker Hodl Law PLLC as a “Ponzi ploy to retail consumers in cryptocurrency.”
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