TL; DR
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The Securities and Exchange Commission (SEC) is suing Kraken just months after filing a lawsuit against Coinbase in June this year, which the SEC lost.
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The more cases the SEC loses, the more priority is given to future cases that Web3 companies can build on.
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If the SEC is not careful, it will encourage more and more Web3 companies to set up shop abroad.
Full story
There’s one thing worse than a know-it-all.
It’s a know-it-all who does that notactually knows it all.
Here’s an example:
The Securities and Exchange Commission (SEC) is suing Kraken.
(Nothing crazy about that news, the SEC has sued numerous Web3 platforms in recent years).
But this comes just months after they filed a lawsuit against Coinbase in June this year, which the SEC lost.
Guess what? The lawsuit against Kraken is almost identical to the losing case against Coinbase.
They have once again claimed that the Kraken exchange has been selling unregistered securities and promoting false ideals.
Here’s where the SEC may be shooting itself in the foot:
The more cases the SEC loses, the more priority is given to future cases that Web3 companies can build on.
To make matters worse, the more lawsuits the SEC brings in general, the more innovation in the Web3 space is discouraged.
Innovation is a good thing because it leads to higher GDP, which leads to a healthier economy.
If the SEC is not careful, it will encourage more and more Web3 companies to set up shop abroad.
(This will lead to less onshore innovation and a possible slowdown in Web3 adoption in the US).
So let’s see what happens in court.
But, sheesh…
If the SEC loses in court again, things start to get a little embarrassing.
Maybe they should take that Web3 exam we wrote about in article 1 👆