• The U.S. Securities and Exchange Commission (SEC) recently sued Terraform Labs and Do Kwon, alleging that terraUSD is a security, alongside various other tokens and products.
• This lawsuit comes after the SEC previously denied crypto bank Custodia’s bid for Federal Supervision, which could potentially lead to the SEC classifying stablecoins as securities.
• The lawsuit against Terraform Labs has important implications for the cryptocurrency industry and how regulators view digital assets going forward.
The SEC’s Stablecoin Hammer, Courtesy of Terraform Labs and Do Kwon
Background on the Regulatory Landscape
The Federal Reserve Board recently announced it had again rejected crypto bank Custodia’s bid for Fed supervision, after previously denying the application last month. This could potentially lead to the SEC classifying stablecoins as securities.
The Lawsuit Against Terraform Labs
The U.S. Securities and Exchange Commission (SEC) sued Terraform Labs and Do Kwon last week, alleging the terraUSD stablecoin was a security, alongside various other tokens and products.
Implications of the Lawsuit
The lawsuit has important implications for the cryptocurrency industry and how regulators view digital assets going forward.
What’s Next?
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