DOGE_SEC Probes SEC Amid Ripple Lawsuit: Calls for Public Input

•  Elon Musk-led DOGE_SEC, investigates potential waste and abuse within the U.S. SEC.  
•  The probe coincides with the nearing end of the SEC’s lawsuit against Ripple.  

The crypto world just got even more interesting! Someone’s turned the tables on the SEC with a new account called DOGE_SEC. They’re playing detective, asking people to dig up dirt on the very agency that’s usually doing the investigating.

The timing’s pretty interesting too, since it’s happening right in the middle of this huge legal battle between the SEC and Ripple. Everyone’s watching that case especially now that there are indicators the SEC might back down from their appeal.

 Shifting Tides in SEC’s Crypto Enforcement  

DOGE_SEC’s initiative has sparked significant interest in the crypto community. The account encourages individuals to report instances of waste, fraud, or abuse by the SEC, particularly in its handling of cryptocurrency cases.

The account took to social media and stated, “DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud and abuse relating to the Securities and Exchange Commission.” Coinbase’s Chief Legal Officer, Paul Grewal, has supported the effort, suggesting that defendants who win against the SEC should be reimbursed for legal fees.  

The SEC’s lawsuit against Ripple has been the centre of criticism. Ripple’s Chief Legal Officer, Stuart Alderoty, has highlighted the SEC’s refusal to release documents related to communications with JP Morgan about XRP, claiming, “I have the receipts,”  with regards to the 201 documents.

Gary Gensler, former SEC chairman is also under scrutiny for having political favouritism when it comes to hiring. Others have called for investigations into the SEC’s hiring practices and its handling of the ETH Gate controversy.  

Internally, the SEC is undergoing changes that could impact its approach to crypto regulation. With Mark Uyeda as Acting Chair and Hester Peirce leading the Crypto Task Force, the agency may shift away from its aggressive enforcement methods.

Legal experts, including former SEC official John Reed Stark, believe the SEC could soften its position on crypto under new leadership with Paul Atkins at the helm.  

Recent developments suggest the SEC may be rethinking its approach to cryptocurrency regulation. Court filings in cases against major players like Binance and Coinbase have been delayed, possibly due to the involvement of the newly formed Crypto Task Force. This task force is expected to focus on resolving non-fraud-related crypto cases, signalling a potential shift in the agency’s priorities.

Acting Chair Mark Uyeda has also voiced concerns about the SEC’s aggressive stance on crypto, particularly in cases where no fraud is alleged. In a statement last November, he emphasized, “The Commission’s war on crypto must end including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm.” These internal changes, combined with the DOGE_SEC probe, could lead to a more balanced regulatory approach.