“Crypto Policies a Disaster,” SEC Commissioner Acknowledges
Commissioner highlights flaws in "policy through enforcement" method following uncertainty in the crypto industry.
Mark Uyeda, commissioner of the U.S. Securities and Exchange Commission (SEC), has described the current approach of the SEC towards crypto as disastrous.
His comments come at a time when the SEC under the leadership of Gary Glasner, faces increasing legal challenges from major crypto platforms and experts accusing the agency of overstepping its jurisdiction and failing to provide clear regulatory guidance.
SEC Unclear Regulatory Policies Criticized
Uyeda made this comment during a recent interview on Fox’s “Mornings with Maria”, where he criticized the SEC’s reliance on “policy through enforcement” rather than issuing clear regulatory guidelines for the crypto industry.
“I think our policies and our approach over the last several years have been just really a disaster for the whole industry,” he said speaking to Fox journalist Maria Bartiromo.
“We have been sending this ‘policy through enforcement,’ we’ve done nothing to guide it,” he further added.
According to Uyeda, the SEC’s lack of guidance has left courts to decide critical issues, resulting in inconsistent rulings. Admitting that this has left many businesses and investors in a state of uncertainty.
Cryptocurrency Platforms Fight Back
Just recently, Crypto.com took legal action against the SEC, arguing that the agency is overreaching its authority by classifying crypto tokens as securities without proper justification. The lawsuit follows the issuance of a Wells notice to their platform, signaling the SEC’s intention to take enforcement action because certain crypto transactions qualify as securities.
Crypto.com’s lawsuit is not the first SEC has had to contend with this year. Just four months earlier, Coinbase, another major crypto trading platform, launched a similar legal challenge against both the SEC and the Federal Deposit Insurance Corporation (FDIC). Coinbase sought to compel these agencies to release documents explaining their stance on regulating digital assets.
These platforms are not the only ones who have been fighting back too. In September, Republican lawmakers wrote a letter to the Chairman of the SEC, Gary Gensler, accusing the SEC of attempting to classify certain crypto activities, like “airdrops,” as unregistered securities. The letter gave the chairman a deadline to explain its regulatory policies, claiming that their actions amount to regulatory overreach, potentially stifling innovation in the sector.
