SEC Sues Over TerraUSD Stablecoin

The SEC has filed a case against Duquan and Terraform Labs, accusing them of misleading investors regarding the Terra USD stable coin, which collapsed last year. This marks a significant regulatory move as it's the first major case against stable coins, potentially setting a precedent for future actions. The SEC's approach could have wide-reaching implications for the cryptocurrency industry, especially concerning the classification and regulation of crypto tokens as securities.

What is the main allegation against Duquan and Terraform Labs by the SEC?

• They misled investors about Terra USD.

• They failed to register their company.

• They hacked into other crypto platforms.

• They engaged in money laundering.

What makes the SEC's case against Terraform Labs significant?

• It's the first case against a staking program.

• It's the first case against a crypto lender.

• It's the first major case against stable coins.

• It's the first case involving a Ponzi scheme.

What is the significance of the SEC's potential case against Paxos?

• It could be a case involving insider trading.

• It could be the first case against a crypto wallet.

• It could be another major case against stable coins.

• It could be the first case against a crypto exchange.

What is the SEC's approach towards crypto tokens according to Chair Gary Gensler?

• They are considered as commodities.

• They are treated as securities.

• They are ignored by the SEC.

• They are treated as foreign currencies.

What potential impact could the SEC's case have on other stable coins?

• It could lead to their complete ban.

• It could have no impact at all.

• It could make them more popular.

• It could result in stricter regulations.