Norman Reed, Interim CEO of Binance.US, has launched a
scathing critique of the Securities and Exchange Commission’s (SEC) strategy
for regulating digital assets, characterizing it as fundamentally flawed and
harmful to the US economy. Reed, a former SEC employee, has articulated his
concerns in a strongly worded op-ed for Fortune, pointing out the agency’s
departure from core principles such as transparency, fairness, and stable
regulation in its management of the rapidly evolving digital asset landscape.
In his editorial, Reed emphasizes the crucial role of
regulatory frameworks in maintaining a healthy financial ecosystem and
protecting the interests of investors. Drawing on his background as a former
SEC employee, Reed expresses disappointment over what he perceives as a
deviation from the agency’s founding principles.
Norman Reed, Interim CEO of Binance.US, Source: LinkedIn
“The SEC was founded on principles of transparency,
fairness, full disclosure, and stable regulation,” Reed notes in his
op-ed. “Yet with regard to digital assets, the SEC has lost its way.”
Reed further contends that the SEC’s current approach
involves a jurisdictional overreach regarding digital assets, lacking proper
authorization from Congress or the courts. He accuses the SEC of opting for
one-off enforcement cases instead of engaging in collaborative efforts with
legislators and other regulatory bodies to establish a comprehensive and
well-informed regulatory framework.
The Interim CEO’s critique comes at a time when internal
dissent within the SEC has also been highlighted, with Commissioner Elad
Roisman expressing concern over the lack of clarity surrounding the application
of securities laws to digital assets. Reed underscores these internal
disagreements as indicative of the broader challenges and uncertainties within
the regulatory landscape.
“With regard to digital assets, the SEC has lost its way.”
In today’s @FortuneMagazine op-ed, Norman Reed, Interim CEO of @BinanceUS, highlights the SEC’s flawed approach to regulating digital assets and shares a path forward for the Commission and industry.
In the meantime, we…
— Binance.US 🇺🇸 (@BinanceUS) January 19, 2024
Executive Branch’s Silence on Digital Asset Definition
Amplifies Uncertainty
Members of the House Financial Services Committee have
joined the ranks of critics, echoing concerns that the SEC’s current approach
leaves the digital asset industry “without clear rules of the road.”
Reed points out that the executive branch has yet to provide a clear definition
for digital assets, while other regulators
characterize them differently from securities.
Reed concludes his op-ed by advocating for three remedies
for the SEC: providing
fair notice to the industry, abandoning arbitrary efforts against crypto, and
collaborating with Congress to design a comprehensive and effective regulatory
framework for the digital
asset industry.
Norman Reed, Interim CEO of Binance.US, has launched a
scathing critique of the Securities and Exchange Commission’s (SEC) strategy
for regulating digital assets, characterizing it as fundamentally flawed and
harmful to the US economy. Reed, a former SEC employee, has articulated his
concerns in a strongly worded op-ed for Fortune, pointing out the agency’s
departure from core principles such as transparency, fairness, and stable
regulation in its management of the rapidly evolving digital asset landscape.
In his editorial, Reed emphasizes the crucial role of
regulatory frameworks in maintaining a healthy financial ecosystem and
protecting the interests of investors. Drawing on his background as a former
SEC employee, Reed expresses disappointment over what he perceives as a
deviation from the agency’s founding principles.
Norman Reed, Interim CEO of Binance.US, Source: LinkedIn
“The SEC was founded on principles of transparency,
fairness, full disclosure, and stable regulation,” Reed notes in his
op-ed. “Yet with regard to digital assets, the SEC has lost its way.”
Reed further contends that the SEC’s current approach
involves a jurisdictional overreach regarding digital assets, lacking proper
authorization from Congress or the courts. He accuses the SEC of opting for
one-off enforcement cases instead of engaging in collaborative efforts with
legislators and other regulatory bodies to establish a comprehensive and
well-informed regulatory framework.
The Interim CEO’s critique comes at a time when internal
dissent within the SEC has also been highlighted, with Commissioner Elad
Roisman expressing concern over the lack of clarity surrounding the application
of securities laws to digital assets. Reed underscores these internal
disagreements as indicative of the broader challenges and uncertainties within
the regulatory landscape.
“With regard to digital assets, the SEC has lost its way.”
In today’s @FortuneMagazine op-ed, Norman Reed, Interim CEO of @BinanceUS, highlights the SEC’s flawed approach to regulating digital assets and shares a path forward for the Commission and industry.
In the meantime, we…
— Binance.US 🇺🇸 (@BinanceUS) January 19, 2024
Executive Branch’s Silence on Digital Asset Definition
Amplifies Uncertainty
Members of the House Financial Services Committee have
joined the ranks of critics, echoing concerns that the SEC’s current approach
leaves the digital asset industry “without clear rules of the road.”
Reed points out that the executive branch has yet to provide a clear definition
for digital assets, while other regulators
characterize them differently from securities.
Reed concludes his op-ed by advocating for three remedies
for the SEC: providing
fair notice to the industry, abandoning arbitrary efforts against crypto, and
collaborating with Congress to design a comprehensive and effective regulatory
framework for the digital
asset industry.