Crypto Community Backs DOGE_SEC’s Probe Into SEC’s Regulatory Practices

• DOGE_SEC initiates a probe into the SEC, highlighting concerns over regulatory misconduct and withholding crucial documents in the Ripple case.
• The crypto community, including Coinbase and Ripple executives, supports the initiative, urging transparency in the SEC’s enforcement actions.
• Internal shifts at the SEC, including leadership changes, signal a possible shift in its crypto enforcement stance amid growing legal scrutiny.

A newly created account, DOGE_SEC, has announced an initiative to investigate the US Securities and Exchange Commission (SEC). The account calls on the public to provide evidence of potential misconduct, waste, and fraud within the regulatory agency. This move has gained traction, especially amid ongoing legal disputes involving the SEC, such as its high-profile case against Ripple.

DOGE_SEC’s call for transparency has sparked discussions across the crypto industry. Coinbase’s Chief Legal Officer, Paul Grewal, responded by suggesting that individuals who successfully challenge SEC lawsuits should receive reimbursement for legal expenses. His statement reflects broader concerns over the agency’s enforcement tactics.

Several industry leaders have pointed to specific issues within the SEC. Notably, Ripple’s Chief Legal Officer, Stuart Alderoty, has claimed to possess evidence exposing the SEC’s withholding of key documents related to communications with JP Morgan regarding Ripple and XRP. His assertion, “I have the receipts,” has intensified scrutiny over the agency’s handling of the case.

Allegations of Bias and Regulatory Missteps Emerge

Beyond the Ripple lawsuit, allegations of political favoritism within the SEC have surfaced. Former SEC Chairman Gary Gensler has been accused of biased hiring decisions, further fueling concerns about the agency’s impartiality. Additionally, some within the crypto community, including social media user @Vet_X0, have urged DOGE_SEC to investigate the so-called ETH Gate controversy, which questions the SEC’s treatment of Ethereum compared to other digital assets.

Meanwhile, the SEC’s lawsuit against Ripple has reached a crucial stage. Speculation is growing that the SEC may withdraw its appeal, particularly as internal shifts within the agency suggest a potential change in its approach to digital asset regulation.

Since filing its appeal-related opening brief on January 15, the SEC has undergone leadership changes that could influence its stance on crypto-related cases. Mark Uyeda, who now serves as Acting Chair, has appointed Commissioner Hester Peirce to lead the agency’s Crypto Task Force. Her leadership is expected to shape how the SEC handles non-fraud-related crypto cases moving forward.

SEC Leadership Changes Indicate Possible Policy Shift

Recent court filings in SEC cases against Binance, Coinbase, and Lejilex have included requests for extensions. Legal analysts believe these delays may be related to the involvement of the Crypto Task Force in reevaluating enforcement priorities.

John Reed Stark, former Chief of the SEC’s Office of Internet Enforcement, has suggested that once Paul Atkins is confirmed as the new SEC Chair, the agency may take a less aggressive stance on cryptocurrency enforcement. Stark noted, “He would likely reverse course on the SEC’s crypto-enforcement efforts.”

Mark Uyeda has previously expressed concerns about the SEC’s enforcement tactics. In a statement from November, he remarked that the Commission’s regulatory stance on digital assets needed reassessment. He stated that enforcement actions should not be based solely on a failure to register, particularly in cases where no fraud or harm is alleged.