The U.S. Securities and Exchange Commission (SEC) has suffered another setback in its crackdown on cryptocurrencies after a judge ordered the regulator to pay $1.8 million after losing its lawsuit against Debt Box.

Last year, the SEC accused crypto mining company Debt Box of “lying to investors” in a “fraudulent scheme” that raised $50 million in Bitcoin and Ethereum.

Yesterday, however, Utah District Court Judge Robert Shelby ruled that the case was invalid and ordered the regulator to pay its legal fees in cash. Previously, the judge said in March that the SEC's actions were "an egregious abuse of the power granted to it by Congress."

DEBT Box declared this a "major victory", and its chief marketing officer Miguel Francis-Santiago told reporters that the ruling was not only a victory for DEBT Box, but also "a victory for the entire Web3 industry."

He continued: "The days of America being a digital desert have to end. We have fallen behind on the world stage, and if we don't reverse this trend, America will be left behind."

Laura Sanders, a policy attorney at the nonprofit Blockchain Association, told reporters that they hope the legal penalty will have the desired effect of curbing the SEC's unfair and fraudulent behavior against any target in enforcement actions.

Amanda Tuminelli, chief legal officer of the DeFi Education Fund, said Judge Shelby could have taken a further step and dismissed the case with prejudice. However, she believes that if the case is reheard, the court will likely side with the DEBT Box.

Tuminelli pointed out that Judge Shelby set a key condition for the SEC when dismissing the case: if the SEC decides to sue the same defendants again, the case must proceed before Judge Shelby. She emphasized that Judge Shelby has a vivid memory of the first trial and will not easily forget it.

The U.S. Securities and Exchange Commission (SEC) has continued to closely regulate the cryptocurrency industry under Gary Gensler’s long tenure as chairman, and in recent years the SEC has filed lawsuits against several companies accused of selling unregistered securities.

But the SEC has also been criticized by industry and lawmakers for being too tough.

Last week, Democrats and Republicans joined forces in a surprise vote to call for a clearer regulatory framework for the crypto space. However, this clear regulatory framework is something the crypto industry has been hoping the SEC can provide for years.

Just today, U.S. Representative Tom Emmer of Minnesota issued a sarcastic response to the outcome of the DEBT Box case. He wrote: "Gary Gensler is making the most of American taxpayers' money."

Conclusion:

In a recent legal ruling, the U.S. Securities and Exchange Commission (SEC) was forced to pay $1.8 million for what it deemed an “egregious abuse” of power in its lawsuit against DEBT Box. The event not only marked a victory for DEBT Box, but also for the entire Web3 industry.

As tensions between the cryptocurrency industry and regulators persist, the ruling could lead to a clearer and fairer regulatory framework. Industry leaders and policymakers alike are watching this development in the hope that it will be a turning point in striking a balance in future cryptocurrency regulation. #SEC败诉 #法律诉讼 #加密货币