A U.S. Securities and Exchange Commission (SEC) commissioner has called the agency’s approach to cryptocurrency regulation a “disaster,” highlighting the SEC’s reliance on enforcement without clear guidance. He criticized the lack of regulatory clarity, which has led to conflicting court rulings, and emphasized the need for clearer distinctions on what falls under securities law.
SEC's Crypto Regulation Labeled a 'Disaster' by Commissioner
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
SEC’s Cryptocurrency Regulation Approach a ‘Disaster,’ Says Commissioner
Mark Uyeda, commissioner of the U.S. Securities and Exchange Commission (SEC), acknowledged that the agency’s approach to cryptocurrency regulation has been inadequate. Speaking Wednesday on Fox Business, Uyeda admitted:
I think our policies and our approach over the last several years have been just really a disaster for the whole industry.
He criticized the SEC’s reliance on “policy through enforcement,” stating that the agency has “done nothing to provide guidance on it.” Uyeda explained that this lack of direction has resulted in courts issuing conflicting rulings on the matter.
His remarks come in the wake of a lawsuit filed Tuesday by Crypto.com against the SEC. The platform accused the agency of overstepping its authority by regulating cryptocurrency as securities without proper jurisdiction. While Uyeda refrained from commenting directly on the lawsuit, he expressed broader concerns about the SEC’s failure to provide clear regulatory guidance, noting:
We have not provided interpretive guidance as to what you can and cannot do.
He added that the agency needs to clarify what falls under securities law, explaining, “You can’t even start to have a discussion unless you know what’s in and what’s out.”
What do you think about Uyeda’s criticism of the SEC’s cryptocurrency regulation and Crypto.com’s lawsuit? Let us know in the comments section below.
