{"id":48382,"date":"2023-04-25T05:30:07","date_gmt":"2023-04-25T09:30:07","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=48382"},"modified":"2023-04-25T06:34:42","modified_gmt":"2023-04-25T10:34:42","slug":"paradigm-files-amicus-brief-in-us-sec-suit-against-terra-and-do-kwon","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/paradigm-files-amicus-brief-in-us-sec-suit-against-terra-and-do-kwon\/","title":{"rendered":"Paradigm Files Amicus Brief in US SEC Suit Against Terra and Do Kwon"},"content":{"rendered":"\n

Paradigm, a crypto-focused investment firm, has filed an amicus brief in the US SEC lawsuit against Terraform Labs<\/a> and its co-founder Do Kwon, challenging the SEC\u2019s theory that stablecoins are securities.<\/p>\n\n\n\n

\"Paradigm<\/figure>\n\n\n\n

The venture capital firm was never invested in the Terra ecosystem and will support neither the SEC nor Terra and Do Kwon in the lawsuit.<\/p>\n\n\n\n

Paradigm To Push Back Against the US SEC<\/strong><\/h3>\n\n\n\n

The VC firm Paradigm filed an amicus\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> brief in the US SEC v. Terraform Labs and Do Kwon to push back against the SEC\u2019s attempts to expand its jurisdiction over the crypto market. <\/p>\n\n\n\n

Paradigm alleges that the SEC has abused its authority to issue regulatory guidelines and force crypto firms to comply with securities laws.<\/p>\n\n\n\n

Paradigm\u2019s Seira says SEC\u2019s stablecoin theory broadens security scope.<\/p>\n\n\n\n

The SEC under Gary Gensler<\/a> filed lawsuits and took enforcement actions against failed crypto entities such as Terra, Do Kwon, and Bittrex to expand its jurisdiction over crypto. Actions have not protected any investors or other parties.<\/p>\n\n\n\n

Fraud and securities breaches led SEC to file a lawsuit against Terraform Labs and Do Kwon On February 16.<\/p>\n\n\n\n

The U.S. SEC said:<\/strong><\/p>\n\n\n\n

\u201cIf an instrument can be exchanged for a so-called \u201ccrypto asset security,\u201d the instrument itself becomes a \u201ccrypto asset security.\u201d<\/strong><\/em><\/p>\n\n\n\n

However, Paradigm claims that the Securities Laws indicate that stablecoins are not securities. Stablecoins are designed to have their value pegged to fiat or different crypto assets. Thus, it can\u2019t deliver a profit. <\/p>\n\n\n\n

The SEC\u2019s theory contradicts decades of guidance from federal courts and would result in any barterable good becoming a security.<\/p>\n\n\n\n

Do Kwon Wants Charges Dismissed<\/strong><\/h3>\n\n\n\n

Lawyers for Do Kwon filed a motion in a U.S. court to dismiss the charges against Terraform Labs and Do Kwon claiming a lack of SEC\u2019s jurisdiction over UST and that it is not a security. <\/p>\n\n\n\n

The South Korean court also declared Terra (LUNA) and UST, an algorithmic stablecoin, not securities. The court also dismissed the state\u2019s appeal of confiscating Daniel Shin for violating the Capital Markets Act.<\/p>\n\n\n\n

Meanwhile, Coinbase filed a lawsuit against the SEC to take the legal route to seek regulatory clarity2. On April 21, Paradigm issued a policy article on SEC registration issues. <\/p>\n\n\n\n

It criticized SEC Chair Gary Gensler for forcing crypto assets that may or may not be securities into an unsuitable disclosure structure.<\/p>\n","protected":false},"excerpt":{"rendered":"

Paradigm, a crypto-focused investment firm, has filed an amicus brief in the US SEC lawsuit against Terraform Labs and its co-founder Do Kwon, challenging the SEC\u2019s theory that stablecoins are securities. The venture capital firm was never invested in the Terra ecosystem and will support neither the SEC nor Terra and Do Kwon in the […]<\/p>\n","protected":false},"author":44,"featured_media":48413,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11411],"tags":[6950,9684,6200,4288],"class_list":["post-48382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-web3","tag-paradigm","tag-do-kwon-2","tag-terra-2","tag-us-sec"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/04\/paradigm.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/48382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=48382"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/48382\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/48413"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=48382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=48382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=48382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}