The US Securities and Exchange Commission (SEC) has faced increasing criticism in recent years over its regulatory approach to the cryptocurrency industry under President Biden’s administration, which has been characterized by increased enforcement actions and lawsuits against major players.
Commissioner Mark Ueda recently expressed his concerns, describing what happened SEC strategy He described regulation of the emerging cryptocurrency market as “a disaster for the entire industry” in an interview with FOX Business.
Ueda criticizes the SEC’s enforcement policies
Ueda’s recent statements reflect the growing discontent within the cryptocurrency ecosystem, especially among stakeholders who… defends For a more balanced regulatory framework.
Along with fellow Commissioner Hester Peirce, dubbed the “Mother of Cryptocurrencies” for her continued support of pro-crypto initiatives, Ueda called for regulations that would encourage the growth of cryptocurrencies. Digital assets Instead of stifling innovation.
during interviewUeda stressed the necessity Clearer steering from the Securities and Exchange Commission, noting that the agency’s policies and approach over the past few years have been “truly a disaster.”
The commissioner noted that the agency relied primarily on “policy through implementation,” which led to confusion within the industry. He added: “We did nothing to provide guidance on that,” noting that Lack of clarity This has led to “inconsistent rulings from different courts.”
Calls for clear rules on the classification of cryptocurrencies
The SEC’s aggressive stance has been underscored by recent lawsuits against prominent platforms like Binance and Coinbase in 2023, as well as… Wales notices It was released to Robinhood and Crypto.com, adding to the resentment among participants.
Crypto.com, in particular, has filed a lawsuit lawsuit v. the SEC, arguing that the agency was exceeding its jurisdiction and improperly classified nearly all cryptocurrency transactions as securities. The platform asserts that the SEC’s enforcement actions are “arbitrary and capricious.”
Ueda responded to these developments by highlighting broader frustrations with the SEC’s lack of interpretive guidance. “We have not provided interpretive guidance on what you can and cannot do,” he said, adding that this uncertainty complicates compliance for companies involved in the matter. Securities offers.
The commissioner also criticized the SEC for adopting what he called an “unlawful rule” that broadly classifies crypto asset trading as “securities transactions” under what many experts believe is an outdated framework for proper regulation of digital assets.
The Commissioner emphasized the need for the SEC to establish clear guidelines on what falls within and outside the securities laws. Ueda also noted that, within the SEC’s jurisdiction, there should be a focus on how brokers handle these assets under their securities law.
At the time of writing, the total cryptocurrency market cap is $2.064 trillion, down nearly $300 million after closing September at a one-month high of $2.29 trillion.
Featured image of DALL-E, chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.