SEC, XRP, Voice of Crypto
The SEC is again back with its enforcement action and has just targeted Immutable.
Immutable was served with a Wells Notice, causing a nearly 15% dump in the price of IMX.
According to the Blockchain Association, the SEC has cost the crypto sector nearly half a billion dollars in damages.
With the elections drawing closer, the future of crypto in the U.S. hangs in the balance.
Immutable, one of the biggest blockchain gaming platforms, got hit with a Wells Notice from the SEC.
This letter, which was served this week, is a warning of sorts that the agency is currently investigating the company.
According to reports from Immutable, this notice was issued just hours after Immutable's first contact with the SEC, which explains the shock.
While the SEC has yet to state its allegations in detail, Immutable suspects that the regulator might point at the "listing and private sales" of IMX tokens in 2021.
The price of IMX has crashed over the last 24 hours, and there are reports that the SEC has cost the crypto sector nearly a billion dollars in damages since 2021.
The SEC has served several Wells Notices this year, mainly to crypto players in every sector.
Some of the biggest companies that have been targeted lately include OpenSea, Crypto.com, and Uniswap.
According to Immutable’s CEO James Ferguson, the Digital World’s Foundation (which oversees IMX’s issuance) has also been targeted.
Regulation by force
Source: Twitter
It called the SEC’s actions “abrupt and lacking in due process” and that the company had only a brief 10-minute call with the SEC.
Usually, there is an extended period of engagement between a company's legal team and the SEC before a Wells Notice is issued.
However, according to Immutable, the SEC served up the notice on the same day of meeting Immutable.
Immutable’s statement also attacked what it described as a “spray-and-pray” legal tactic by the SEC.
The company maintains that the regulator has targeted many crypto firms.
According to Immutable, these enforcement actions are mainly based on broad assumptions that digital tokens "are" securities.
It also expressed disappointment at this indiscriminate approach and how it has been used across the crypto industry over the last few years.
Furthermore, soon after the news of the Wells Notice, the value of IMX dropped by nearly 15% within hours.
Immutable’s Crash
According to the charts, the recent decline in IMX came just after triple-top rejections from the upper trendline of the descending channel below:
Price action on IMX
According to the charts, unless IMX can hold its ground at around the $1.15 price level, the decline will likely continue downwards to the bottom of the channel at around $0.75 or lower.
Recently, the Blockchain Association (B.A.) has joined the SEC criticism.
In a recent report, the advocacy group questioned the SEC Chair Gary Gensler’s “regulation by enforcement” strategy.
The association also states that crypto firms have spent a combined $426 million in legal fees to defend against the agency’s actions in the three years since 2021.
The group updated its “regulation by enforcement” tracker on 31 October to show that the SEC has filed a staggering 104 cases against crypto companies under Gensler’s tenure.
This amounts to nearly three cases a month in three years.
The SEC’s anti-crypto crusade
The B.A. also expressed its frustration at the agency and the “immeasurable loss of jobs, innovation, and U.S. tech investment” it has caused.
According to Kristin Smith, the CEO of the B.A., crypto users should support leadership changes at the SEC.
This would encourage a much fairer regulatory environment for the sector.
With the U.S. presidential elections only a few days away, the crypto community is paying attention to Harris and Trump's views on crypto.
In recent statements, Donald Trump has promised to replace the current SEC Chair, Gary Gensler, if elected.
Meanwhile, according to reports, Vice President Kamala Harris may also be considering a replacement for Gensler if elected.
According to the Blockchain Association, crypto is a significant election issue, with voters making up 18% of the U.S. electorate.
These voters could sway election outcomes by either backing pro-crypto candidates or voting against them.
While Vice President Harris is currently predicted to win the popularity vote, polls show that the race is still very competitive, with both parties trying to rally support from the crypto community.
As the regulatory pressure mounts, the crypto industry is preparing for a critical moment in its history.
Firms like Immutable, willing to challenge the SEC, show a broader sentiment across the industry.
This sentiment calls for more balanced laws and a better regulatory approach.
For many crypto advocates, the 2024 election represents a major turning point in the way crypto is viewed under U.S. law.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.