The Securities and Exchange Commission (SEC) has pledged to train its staff on the value of honesty and openness, after admitting a serious error in the case against startup DEBT Box.
After the United States District Court for the District of Utah criticized the SEC for acting dishonestly in the case against DEBT Box, the securities regulator issued a circular, in which he apologizes for his lack of precision and sincerity in the statements given before the Court against the company Digital Licensing Inc, known as DEBT Box.
The SEC admitted that the statements it made during the hearing on July 28 of this year, on the case against the cryptocurrency company, were inaccurate.
A distorted case
According to the securities regulator, his lawyers failed to clarify that “certain statements were inferences from facts known to them and not directly supported factual assertions,” leading him to say that he deeply regretted his mistakes in the case.
“The Commission takes this Court’s concerns seriously and deeply regrets these errors. Agency officials are taking steps to ensure that these errors are not repeated in this action or in other proceedings.”, the SEC said.
The US securities regulator said it was carrying out Mandatory training for all staff The SEC, which is part of the Division of Enforcement, was ordered to educate them on “the duty of accuracy and candor and the obligation to correct any inaccuracies as soon as they come to light.” However, the SEC also justified its actions, indicating that it had acted “in good faith,” and has therefore asked the court in question not to apply sanctions against it.
In the lawsuit involving startup DEBT Box, the regulator had said the company misrepresented investments, lied about having a real-world business, and defrauded investors of $49 million. However, several of the statements issued by the regulator against DEBT Box were found to be misleading.
The Bitcoin spot ETF and the SEC's behavior
In this regard, the crypto community is speculating on the SEC's behavior and its relationship to the possible Bitcoin spot ETF.
On X (formerly Twitter), users have indicated that the current conduct of the US securities regulator may be related to the Possible approval of a Bitcoin-based listed investment vehicle“This is the first time I’ve seen the SEC admit that it was wrong. Maybe a sign that the SEC is close to approving an ETF,” said user @boom7x on the social network.
The Bitcoin spot ETF, one of the most anticipated financial instruments by the crypto community, could see the light of day in early January. Experts on the subject point out, with a 90% probability, that the SEC could approve the Bitcoin spot ETF between January 8 and 10 of next year.
Continue reading: SEC met with all Bitcoin ETF applicants via phone
