As a seasoned researcher who has witnessed the evolution of the digital asset market over the past decade, I find myself constantly intrigued by the dynamic interplay between regulatory bodies and innovative industries. The recent SEC charges against TrueCoin and TrustToken, related to the TUSD stablecoin, are yet another fascinating chapter in this ongoing narrative.
The United States Securities and Exchange Commission (SEC) accused two firms linked to the TUSD stablecoin of breaking securities laws.
In simpler terms, TrueCoin and TrustToken have resolved claims made by the SEC, which accused them of selling investment contracts without registration from November 2020 to April 2023. TrustToken developed a decentralized lending platform called TrueFi, where users can use TrueUSD (TUSD), a stablecoin issued by TrueCoin, for financial transactions.
In a complaint filed on September 24th, the Securities and Exchange Commission (SEC) alleged that both companies employed deceptive marketing strategies to portray TUSD and TrueFi as secure and reliable investment options. Jorge G. Tenreiro, acting head of the SEC’s Crypto Assets and Cyber Unit, underscored the importance of company registration for investor protection, as this case demonstrates.
Market participants involved with cryptocurrencies, such as Dan Gallagher – a former SEC staff member now serving as the general counsel for Robinhood Markets, frequently express disagreement with the views expressed by SEC officials.
Because of this dispute, a series of legal disputes have arisen, with businesses such as Coinbase being involved. Lawmakers have also requested clarification from the securities agency about their “regulation through enforcement” approach, and SEC commissioner Hester Peirce has criticized the regulator’s strategy as ineffective and perplexing.
As a holder of TrueCoin, I’ve learned that TrueCoin and TrustToken have chosen to settle charges without admitting guilt. The settlement includes fines totaling $163,766 for both parties, with an additional $340,930 in disgorgement for TrueCoin. In simple terms, they’re paying penalties and returning certain funds related to the case.
The agreement increases the accumulating number of penalties imposed by the SEC on the cryptocurrency sector. Since 2013, cryptocurrency firms have collectively paid the commission over $7 billion, and a study reveals that fines related to cryptocurrencies have skyrocketed more than 3,000% in the past year.
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2024-09-24 23:18