It is not inconceivable that the American Securities & Exchange Commission (SEC) is unhappy with the saga about Terra (LUNA) and the stablecoin UST. Two former attorneys at the SEC have even The Block Research reported that the SEC has most likely already launched an investigation into Terraform Labs.
SEC investigating LUNA
Philip Moutakis, a former attorney with the US regulatory body, said today that he believes the SEC has already launched an investigation into Terraform Labs. According to him, it is obvious that the SEC has not been sitting still in the past few days, especially because the SEC already started an investigation into Mirror Protocol.
The founder of Terraform Labs, Do Kwon, was also the man behind this Mirror Protocol.
“The SEC is already on the scene, investigating the Mirror protocol,”
However, an SEC spokesperson declined to comment on a potential investigation into Terraform Labs and UST. He said the SEC can’t say whether an investigation is underway, but neither can they say it isn’t. So unclear.
stablecoin regulation
stablecoins have long been a thorn in the side of regulators around the world and the SEC is no different. Last year, SEC chairman Gary Gensler called stablecoins “poker chips† A regulatory framework for stablecoins has been in the works for some time and perhaps the demise of UST will accelerate this process.
Do Kwon, let himself on April 21l of this year on the fact that stablecoins, according to the SEC, may be securities, or effects, could be seen. According to him, this notion is complete nonsense. Philip Moutakis, however, argues that it is not so simple:
“Even if there is a question as to whether UST is a security,” Moustakis continued, “Even if the stablecoin, as designed, may have escaped the application of federal securities laws, subsequent transactions may put the stablecoin back under the purview of the SEC. bring.”