SEC Commissioner’s Critique: A ‘Disastrous’ Approach to Crypto Regulation

SEC Commissioner SEC Mark Uyeda stated on FOX Business that the regulator’s stance on digital assets is “a disaster for the entire industry.”

The official acknowledged that the Commission’s approach was “wrong.” The agency should have provided clear guidelines before enforcement actions.

“Our policy and approach over the past few years have simply been a disaster for the entire industry. We did not develop guidelines. As a result, the courts have done so, issuing various decisions. […] We need to provide clear guidance and interpretations of what falls under securities laws and what does not,” commented Uyeda.

The official acknowledged that the agency’s head, Gary Gensler, has his own “viewpoint” on the regulation of digital assets.

Uyeda and his colleague Hester Peirce often vote for more progressive steps in cryptocurrency policy, but ultimately the agency follows what its chairman deems right, he added.

“Within the agency, our agenda is driven by Gensler. All staff follow his directives,” he explained.

On October 8, the platform Crypto.com filed a lawsuit against the SEC after receiving a Wells notice.

Earlier, Gensler emphasized that he sees no need for an additional regulatory framework beyond the Howey Test.

In July, Republican candidate Donald Trump promised to fire Gensler if he wins the U.S. presidential election.

In September, the House of Representatives began an investigation into the SEC’s use of politically motivated hiring practices.

Back in June 2023, congressmen introduced a bill for Gensler’s resignation.

Two months after Grayscale’s court victory against the agency, a similar proposal was made again.

In October, it was revealed that SEC Enforcement Director Gurbir Grewal would be stepping down. The community labeled the official as “the main instigator of Gensler’s aggressive attack on cryptocurrencies.”