TL;DR
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The Securities and Exchange Commission (SEC) is suing Kraken just months after they filed a lawsuit against Coinbase in June this year, which the SEC lost.
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The more cases the SEC loses, the more precedence is set for future cases to Web3 companies to build off.
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If the SEC doesn’t watch out, it’ll simply encourage more and more Web3 companies to set up shop overseas.
Full Story
There is one thing worse than a know-it-all.
It is a know-it-all who does not, in fact, know it all.
Here’s an example:
The Securities and Exchange Commission (SEC) is suing Kraken.
(Nothing crazy about that news, the SEC has sued plenty of Web3 platforms over the past few years).
But this comes just months after they filed a lawsuit against Coinbase in June this year, which the SEC lost.
And guess what? The suit filed against Kraken is almost identical to the losing case against Coinbase.
They have again claimed that the Kraken exchange has been selling unregistered securities and promoting false ideals.
Here’s where the SEC may be shooting themselves in the foot:
The more cases the SEC loses, the more precedence is set for future cases to Web3 companies to build off.
To add insult to injury, the more lawsuits that the SEC files in general, the more it discourages innovation in the Web3 space.
Innovation is a good thing because it leads to higher GDP, which leads to a healthier economy.
If the SEC doesn’t watch out, it’ll simply encourage more and more Web3 companies to set up shop overseas.
(Leading to less onshore innovation, and a potential slow down in Web3 adoption in the US).
So, let’s see what happens in court.
But, sheesh…
If the SEC loses again in court, it starts to get a bit embarrassing.
Perhaps they should take that Web3 exam we wrote about up in article 1 👆
