Efe Nail Saltık 
Five Republican representatives from the US Senate have harshly criticized the actions of the Securities and Exchange Commission (SEC) in the lawsuit filed against Debt Box operating in the Digital Licensing field. The Senators have identified the behavior of the SEC as “irrational” claiming that the regulatory body has acted in an “unethical and unprofessional” manner.
In a letter written to SEC Chairman Gary Gensler on February 7, six Republican senators expressed their “great concern” about the SEC’s stance in the Debt Box case. The SEC had acknowledged in December that Debt Box’s allegations of closing its bank accounts and moving to the United Arab Emirates were neither true nor sincere.
Senators Warned in a Letter to SEC
The senators emphasized that the behavior of the SEC in this case points to the need to review other SEC enforcement cases as well. They also made clear that other cases did not rely on suspicious evidence, confusing statements, or outright false claims, as well as the willful or inadvertent submission of incorrect information.
These developments have heightened concerns over the necessity for careful examination of the SEC’s practices and behavior. The Senators reiterated that the regulator must uphold the rule of law by questioning the impartiality and accuracy of the SEC.
The criticisms directed at the SEC by the Republican senators (JD Vance, Thom Tillis, Bill Hagerty, Cynthia Lummis and Katie Boyd Britt) question the regulatory body’s stance and highlight the need for future steps. However, it is stated that along with these criticisms no action plan was proposed and only concerns were expressed.
The senators emphasize that solution proposals such as mandatory staff training and staff changes by the SEC may not be sufficient.
The lawsuit filed by the SEC against Debt Box began in July 2023 over allegations related to the company’s illegal crypto plans. However, subsequent evidence showed that most of the SEC’s allegations were false and the court took this matter seriously and filed a petition to dismiss the case. This circumstance may have overshadowed the other lawsuits conducted by the SEC against crypto companies. The Commission currently has ongoing cases against companies like Binance, Kraken, Ripple, and Coinbase.