SEC Commissioner Mark Uyeda discusses the agency’s handling of cryptocurrencies on ‘Mornings with Maria.’
As the markets enter the new frontier of cryptocurrency in recent years, the top federal agency that oversees financial services admits that its approach to crypto is wrong.
“I think our policies and our approach over the last few years have been a real disaster for the entire industry,” US Securities and Exchange Commission (SEC) commissioner Mark Uyeda said on “Mornings with Maria” on Wednesday.
“We have been sending this ‘policy by force,’ we have done nothing to provide guidance on it,” he continued. “Because of this, this has been won by the courts. And different courts have ruled in different ways.”
On Tuesday, Crypto.com filed a lawsuit against the SEC alleging that it overstepped its authority in regulating the cryptocurrency industry.
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Reuters reported that the crypto trading platform is following the adoption of a “Wells notice,” which is an official announcement that regulatory officials intend to recommend enforcement action on the grounds that crypto tokens qualify as securities.
SEC Commissioner Mark Uyeda said the agency’s approach to crypto has been “truly catastrophic for the entire industry.” (Getty Images)
“Our case argues that the SEC has expanded its powers beyond legal limits and separately that the SEC has established an illegal rule that trades in almost all crypto assets are securities transactions,” Crypto.com told the outlet.
“Although I will not comment on the details of this case,” replied Uyeda, “what happened is part of the great frustration that we did not provide guidance explaining what you can or cannot do and who is involved in a certain type of securities, how you register, how you are regulated as a trader, how you are registered as a trade. “
Crypto.com’s lawsuit comes just four months after rival platform Coinbase launched legal action against the SEC and the Federal Deposit Insurance Corporation (FDIC) to obtain documents related to the agency’s crypto regulatory practices.
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Coinbase’s legal action aims to expose what it describes as “a deliberate and concerted effort by the SEC, FDIC and other financial regulators” to pressure banks to deny crypto firms access to the federal banking system.
Uyeda said Wednesday that pro-crypto companies are arguing about “intangibles that won’t change the bottom line.”
“Things that will not affect how a person values ​​a business,” added the commissioner. “And instead it seems more dressed up: Well, we can get some social change because we can’t get it through Congress and legislation, why don’t we do so-called independent financial regulators?”
When it comes to what the SEC should do differently, Uyeda addressed “the need to set clear guidance and definitions of what falls within and falls outside of securities laws.”
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“You can’t even begin to negotiate unless you know what’s in and what’s out. And then from there, to the level of those within our jurisdiction, we need to think, okay, how does the seller handle these securities?”
Top House Republicans sent a letter to SEC Chairman Gary Gensler last month, raising concerns that the crypto-proclaimed police officer is engaging in regulatory hijacking by classifying certain “airdrops” as unregistered securities.
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FOX Business’ Eleanor Terrett contributed to this report.
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