SEC Has ‘Weaponized Ambiguity’ in Prosecuting Crypto, Suit Says

Ether cryptocurrency and trading on the Ethereum Network should be declared outside the scope of definitions of securities or investment contracts under federal law, a law firm that uses the network says in a suit against the SEC.

The firm challenges what it calls the US Securities and Exchange Commission’s “intentional, weaponized ambiguity.” The SEC “has vaguely and ambiguously asserted its ‘right’ to police digital assets as securities” for 14 years, Hodl Law PLLC says in its complaint, filed in the US District Court for the Southern District of California.

Yet the agency “has refused to identify more than one ...