Thomas Gorman, Companion at the American regulatory body Dorsey & Whitney, defended the SEC’s investigation of the cryptocurrency industry in a recent interview, asserting that all of its litigation has been “winnable.” Gorman is particularly skilled at defending clients against SEC investigations, enforcement actions, and legal white-collar securities cases.
“In my opinion, Gary has a really well-organized agenda. When asked a question by Bloomberg Crypto hosts Matt Miller and Kailey, Gorman responded, “People who find themselves not listening to him are going to regret it.
Gorman stated that despite the current market misunderstanding, the fundamentals of digital property have always been extremely apparent. He said that the guidelines had been in the books for many years, with the majority of them coming from a Supreme Court judgement from 1946. This was a reference to the 1946 SEC vs. Howey decision, in which it was decided that a transaction would be regarded as a security if it turned out to be an investment contract.
When asked if the rules established in the 1940s would still be applicable to the recently constructed digital property, Gorman answered emphatically in the affirmative and added that all of the current cases, like the SEC vs. Ripple case, were ones that the SEC could have won.
Gorman said that some people who have worked in the industry for years are aware of the Howey rules’ consequences but have chosen to ignore them, and that some of the larger platforms just pretend to comply. Crypto wants to be treated differently, but shouldn’t receive discriminatory treatment, the attorney claims. “It’s a unique kind of security, but securities laws have been established for many years, regardless of modifications,”
The attorney even claimed that those involved in cryptocurrency were actively trying to change the rules so that the resulting guidelines would provide less information and, as a result, less investor protection.