SEC violated federal privacy law

During a lawsuit between the US Securities and Exchange Commission (SEC) and Ripple, the former argue that the law in the US must be respected, in connection with which they decided to sue XRP in December 2020. However, the SEC themselves became the person who broke the law.

The US Securities and Exchange Commission has exposed personal data about some cryptocurrency miners online, which of course violates privacy laws. Representatives of the SEC did not intentionally do this, but the fact remains.

For several years, the US Securities and Exchange Commission has been conducting its own private investigation into the activities of Green, a blockchain company that created a decentralized energy system. It is noteworthy that Green also cooperated with the SEC.

At the request of the regulator, the company provided a list of its 650 clients and gave all the necessary information. Due to the fact that the information was received by the US Securities and Exchange Commission in the format of an email, data protection left the best and a leak occurred and the data ended up on the Internet.

The SEC became violators of the federal privacy law, which was passed in 1974. According to this law, the US Securities and Exchange Commission has no right to post the received data on the network, unless there is permission from the persons referred to in the information.

After the data went online, there was a lot of resentment from the side of the miners. They are obviously unhappy with what happened and, more importantly, according to them, the hackers will have enough information received to hack the victims from the list leaked by the US Securities and Exchange Commission.

At the moment, the SEC, in addition to this situation, is involved in another not very pleasant business. The US Securities and Exchange Commission is suing Ripple. The latter received indictment in December 2020 for having carried out an act of primary reflection without all the proper preliminary procedures that should be in such cases.

Ripple, in turn, reported that the cryptocurrency industry in the United States is not yet considered as a full-fledged securities market, and therefore they began to defend themselves in court, and the whole world has been watching this process for more than two years.

According to the US Securities and Exchange Commission, the cryptocurrency industry can easily be subject to securities regulations. Ripple CEO Brad Garlinghouse said that the SEC simply does not want to work with the creation of a certain set of rules regarding digital assets, which cannot be equated with ordinary securities.

The US House of Representatives stood in solidarity with Garlinghouse and eventually created the first-ever subcommittee on digital assets. It will be led by French Hill, who with his team will have to develop a set of rules about digital assets that regulators and cryptocurrency entrepreneurs will adhere to.