TerraForm Labs and its founder du Quan have been chosen by the American Securities Sale Association (SEC), which has aroused various reactions in the password world.

On Feb. 16, the American Securities Trading Federation sued Kwon Laboratories and Terraform Labs on suspicion of selling "a set of encrypted asset securities." Although the community team members did not defend the personal behavior of Prime Minister Quan Quan, they suspected the way SEC verified Terra and the founder.

Mike Selig, a Web3 lawyer, posted his views on the issue on Twitter. According to Selig, SEC describes the reliability of optimization algorithms in TerraU.S.Classic (USTC) as securities because it can be interchangeable with Terra (Luna), the current Luna tradition (LUNC), and the latter is the securities referred to by SEC. Selig explained that under this basic theory, "basically everything else can be securities."

Alliance Dao General Counsel Mike Wozzak (Mike Wawszczak) also commented on the topic. According to Wawszczak, the current chairman of SEC, Gamo Gensler, is likely to want to have a real administrative enforcement process in applying securities laws to all transactions. He wrote on Twitter:

Justin Broder, a partner at the law firm Willkie Farr&Gallagher, likens the American Securities Sale Federation's return on USTC's use of another agreement to "depositing Fiat cars in a financial institution". The teacher also wondered if there were any other unsafe currencies that did not behave this way. In the end, Broder described SEC's actions as "crazy".

In addition to the master, other people in the password world also joined the discussion. Dylan Daniel feels that if everything becomes a form of security, SEC will be forced to expand and expand itself. The Web3 community team member expects Gensler to have a solid plan.

When SEC confirmed the verification of Parksos on Feb. 13, a similar view was expressed on Twitter, claiming that Binance dollars (BU.S.) Stability is a kind of security. Many community members are so confused that they think it is not easy for stables consumers to buy it, and predict that its price will rise.