The US Securities and Exchange Commission (SEC) has faced increasing criticism in recent years for its regulatory approach to the crypto industry under President Biden’s administration, characterized by increased enforcement actions and lawsuits against major players.
Commissioner Mark Uyeda recently expressed his concern, explaining SEC strategy and regulation of the emerging crypto market as “a disaster for the entire industry” in an interview with FOX Business.
Uyeda Critiques SEC’s Enforcement-Driven Policies
Uyeda’s latest comments indicate growing discontent within the crypto ecosystem, especially among stakeholders a lawyer for a balanced regulatory framework.
Along with fellow Commissioner Hester Peirce, who has been dubbed the “mother of crypto” for her constant support of pro-crypto initiatives, Ueda called for laws that encourage growth digital goods rather than preventing new ones.
during the interviewUyeda emphasized the need to be clear direction from the SEC, stating that the agency’s policies and approach over the past few years have been “absolutely disastrous.”
The Commissioner pointed out that the agency relied too much on “policy over enforcement,” leading to confusion within the industry. “He doesn’t do anything to give guidance about it,” he added, noting that lack of clarity has resulted in “conflicting decisions from various courts.”
It’s Driving Clear Rules on Cryptocurrency
The SEC’s aggressive stance has been underscored by recent lawsuits against prominent platforms such as Binance and Coinbase in 2023, and Wells Notices removed from Robinhood and Crypto.com, adding to the sense of discontent among participants.
Crypto.com, in particular, has included ia the case against the SEC, arguing that the agency exceeded its authority and improperly classified almost all cryptocurrency transactions as securities. The forum argues that the SEC’s enforcement actions are “unreasonable and unreasonable.”
Uyeda responded to these developments by highlighting widespread frustration with the SEC’s lack of translation guidance. “We haven’t given a clear guideline as to what you can or can’t do,” he said, adding that this uncertainty makes it difficult for the companies involved to comply. securities contributions.
The Commissioner also criticized the SEC for adopting what he called an “illegal rule” that broadly classifies the trading of crypto assets as “securities” under what many experts believe is an outdated framework for the proper regulation of digital assets.
The commissioner emphasized the need for the SEC to set clear guidelines on what falls within and outside the securities laws. Uyeda also noted that, within the jurisdiction of the Securities and Exchange Commission, the focus should be on how brokers handle these assets under their securities laws.
At the time of writing, the total crypto market capitalization stands at $2.064 trillion, down nearly $300 million after closing September with a one-month high of $2.29 trillion.
Featured image from DALL-E, chart from TradingView.com
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