In an unprecedented move, popular crypto firm Terraform Labs and co-founder Do Kwon have sued the US Securities and Exchange Commission (SEC) file last judgment. The co-founder received a subpoena to testify from the SEC during a blockchain event last month.

Do Kwon – CEO of Terraform Labs

In this regard, the operator said it understands the SEC’s concern about products that they may not have enough knowledge or enthusiasm for. The subpoenas issued relate to the Mirror Protocol, which focuses on Terra’s synthetic assets and allows users to mint tokens that are pegged to the actual stock prices of companies like Apple and Tesla.

The co-founder argues that while he’s willing to work together to help managers understand the product, their hostility is a bottleneck stopping them all. In one interview Recently he said:

“It is also important to respond to crypto companies that are working with the regulator, they do so with a show of force and confidence.”

Do Kwon received a subpoena from an outside private service company on behalf of the SEC at the Messari Mainnet event. He bluntly criticized the move as “openly threatening and embarrassing”.

Do Kwon now not only denies the subpoena because he is Korean, but also violates the country’s rules by breaking confidentiality and hiring an outside service. He suggested that the SEC should instead investigate illegal activity in the industry.

“I think the focus should be on eliminating fraud and fraud in the industry first.”

As with Do, the watchdog monitors publicly established protocols.

The co-founder warns that financial regulators around the world will soon be pursuing DeFi in a similar fashion, adding that “it’s like one of those things that you have to deal with when you try to get started.” a financial revolution. However, if these watchdogs really want to regulate the industry in a global context, the current rules will not do so.

“A lot of securities laws are pretty out of date … I don’t think this framework is really applicable in a global context.

I feel like I can really come up with clear rules to decide what is a trustworthy decentralized asset and what a security is. Without that clarity, I think it’s very difficult for builders and managers to be on the same page. ”

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