By John M. Linnel, AP The cryptocurrency world has been in the grip of a “double whammy” since a federal judge last month halted the U.S. Securities and Exchange Commission’s enforcement of new rules designed to protect the cryptocurrency industry from the dangers of government-backed digital currencies.
The SEC, which oversees the digital currency industry, has been fighting for months to reinstate the digital currencies rules that were enacted in January, but its latest moves have left many fearing the SEC could lose its license to operate and restrict trading of crypto-assets.
The SEC is asking the court to block the government’s efforts to enforce the rules that will take effect this week, and it is now seeking to have a hearing set for June.
The move comes after a federal appeals court struck down the government rules in June.
The U.C.L.A. ruling came after the SEC asked a judge to block enforcement of the rules, arguing that the SEC lacked authority under the Federal Trade Commission Act to enforce them.
“The SEC’s position is not based on a legitimate regulatory concern about a potential conflict of interest between the Commission’s regulatory duties to ensure that issuers comply with applicable federal laws and its role in administering the Securities Act,” the agency argued in its motion.
The court agreed and issued a decision that the U,C.LA ruling “does not resolve the SEC’s legal challenge to the SEC rules” and the agency’s request to have the court rule in its favor.
The rules require companies that accept cryptocurrency from the public to track the users of the currency in order to protect it from hackers, fraudsters and other attackers.
They require companies to maintain records on who owns and controls the tokens they issue and who controls their wallets, allowing the SEC to trace users of digital currency as they withdraw and spend it.
The rule also requires issuers to keep a list of all users and addresses of wallets that are tied to each of the digital coins they issue.
It also requires exchanges to provide the government with information about any users who withdraw from their wallets to avoid a potential chargeback.
As a result, many companies have begun to implement security measures to protect against hackers and other malicious actors.
But the SEC has also argued that the new rules would unfairly restrict their ability to do business with companies that use digital currencies, a claim the court rejected.
In the SEC ruling, the agency cited a “lack of transparency” in the way the companies implement the rules.
The agency argued that companies need to be transparent to their users about their use of the virtual currency.
“Although companies may have legitimate interests in protecting their user privacy, they may also find themselves in a situation where they need to comply with a law that conflicts with their interest,” the SEC said in its decision.
“A lack of transparency is not a sufficient justification to prevent the agency from implementing an adequate solution.”
The SEC said it plans to appeal the court’s ruling and that it plans “to pursue a comprehensive approach to protect all U.T.C.’s users.”