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A Small Bite Out Of Crypto - SEC Fines Abra $150,000

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@inalittlewhile
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Even though Abra didn't profit from the sale of what the SEC is calling 'Security-Based Swaps', they still took their lashings from regulators.

Abra and Phillipine based partner Plutus Technologies both got the small smackdown from the Feds. The CFTC (Commodities Futures Trading Commission) also grabbed their whip.

Why? Because they pegged assets backed by crypto to Securities and sold them to U.S citizens. They also were reported to have been charged with registration violations.

A Money Grab, Warning, Or Both?

Abra was recently awarded a 5 million dollar contract from the Stellar Development Foundations so what's $150,000?

It sounds like a warning from the establishment that Abra pissed too close to their territory. Because what did Abra actually sell? They weren't Securities but tokenized pegged assets.

These tokens only mimicked the Securities they were pegged to with every one backed evenly in cryptocurrency. There wasn't a scam or a lawsuit, but an agreement between parties as to the fine.

Seems like neither Abra or Plutus Technologies are interested in challenging the Feds. And why would they over such a small amount of money? We're talking companies that stand to make tons of cash when Crypto booms!

A Watchful Eye With Some Leniency?

As a citizen of the United States myself, I'm not concerned by the small slap on the wrist to a couple of crypto companies.

More concerning is the lack of clarity by Federal institutions on how they will handle owners of cryptocurrency. From regulatory bodies like the SEC to the IRS, I get the feeling they have a limited understanding tokens.

And a lack of understanding is concerning to me, as the majority of the remaining world countries are making much stronger moves to adopt crypto. The USA better wake up....or risk falling incredibly behind in the sector of technology.

What are your thoughts on such seemingly small fines handed out by the SEC? Were their judgements legit or were they simply marking their territory?

Link to source article:

https://www.ibtimes.com/cryptocurrency-trading-app-abra-charged-sec-cftc-security-swapping-3010649

Thanks for reading and....

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