Many of us are already aware that the SEC of the United States has been actively taking measures to enforce a variety of ‘action settlements.’ However, these measures have not resulted in any positive changes in the global cryptocurrency industry. Many members have gone ahead and called the regulator’s actions an outright violation of the First Amendment.
In response to the unfair implementation of censorship means by the SEC, Washington D.C based Cato Institute along with the Institute for Justice have sued the regulator to prove that the governing body has been indulging in unlawful activities.
The filing reads,
“The SEC has been participating in wildly inappropriate use of government power… directly contrary to the spirit of accountability and transparency that permeates our founding documents” are correct.
On January 9th, a representative for the Cato Institute filed the lawsuit, which claims that the financial watchdog’s “perpetual, lifelong gag orders” contravenes the ‘First Amendment’ and thus legal proceedings must be brought against the government body.
Furthermore, the filing reads,
“The government uses its extraordinary leverage in civil litigation to extract information from settling defendants a promise to never tell their side of the story, no matter how outrageous the government’s conduct may have been and no matter how strong the public’s interest may be in knowing how the government conducts itself in high-stakes civil litigation.”
In the past couple of years, the SEC has been wielding its power against ICO operators, claiming it a necessary effort for the protection of the global investor community. The outcome of the legal proceedings against the SEC would surely have a significant effect on the crypto industry. One can only hope that the response toward the ICO projects improves in the years to come.