Commissioner Criticizes SEC for Taking Enforcement-Centric Approach to Crypto Regulation

consultation businessman male lawyer judge counselor having team meeting scaled

A commissioner with the U.S. Securities and Exchange Commission (SEC) has criticized the securities watchdog for focusing on enforcement actions in its oversight of the crypto industry.

SEC Commissioner Slams Agency for Focusing on Enforcement Actions in Regulating Crypto Assets

SEC Commissioner Hester Peirce criticized her own agency Monday after it announced an enforcement action against cryptocurrency exchange Poloniex. She noted that the SEC’s action against the exchange “doubles down on the Commission’s enforcement-centric approach to crypto.”

The securities watchdog alleges that Poloniex operated without being registered and planned internally to be “aggressive” in listing more assets in 2017 despite saying publicly that it would not list securities. The regulator said that in 2018 the exchange let users trade assets it deemed “medium risk” of being classified securities.

Peirce, also known as “crypto mom,” argued that the SEC was taking its time in dealing with cryptocurrencies at the time. “During the period at issue here (mid-2017 through 2019), the Commission was moving very cautiously with respect to regulated entities’ engagement with crypto assets,” she explained, elaborating:

Sure, Poloniex could have tried to register. Had it done so, it likely would have waited . . . and waited . . . and waited some more.

The commissioner opined: “Given how slow we have been in determining how regulated entities can interact with crypto, market participants may understandably be surprised to see us come onto the scene now with our enforcement guns blazing.”

A report published in May shows that the SEC has brought 75 enforcement actions against companies and individuals in the crypto industry. Last week, the SEC took action its first action involving decentralized finance (defi).

Recently, SEC Chairman Gary Gensler outlined his approach and priorities to regulating crypto assets, focusing on investor protection.

He said last week that Satoshi Nakamoto’s “innovation is real,” adding that “it has been and could continue to be a catalyst for change in the fields of finance and money.”

What do you think about the SEC focusing on enforcement actions in regulating the crypto industry? Let us know in the comments section below.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 66,471.81
ethereum
Ethereum (ETH) $ 3,187.19
tether
Tether (USDT) $ 0.999868
bnb
BNB (BNB) $ 573.30
solana
Solana (SOL) $ 148.93
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,175.97
xrp
XRP (XRP) $ 0.538454
dogecoin
Dogecoin (DOGE) $ 0.167636
the-open-network
Toncoin (TON) $ 6.35
cardano
Cardano (ADA) $ 0.491062
avalanche-2
Avalanche (AVAX) $ 38.06
shiba-inu
Shiba Inu (SHIB) $ 0.000024
bitcoin-cash
Bitcoin Cash (BCH) $ 528.91
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 66,244.75
tron
TRON (TRX) $ 0.113905
polkadot
Polkadot (DOT) $ 7.05
chainlink
Chainlink (LINK) $ 14.91
matic-network
Polygon (MATIC) $ 0.748597
litecoin
Litecoin (LTC) $ 84.56
internet-computer
Internet Computer (ICP) $ 13.24
near
NEAR Protocol (NEAR) $ 5.59
uniswap
Uniswap (UNI) $ 7.68
leo-token
LEO Token (LEO) $ 5.76
dai
Dai (DAI) $ 0.999068
ethereum-classic
Ethereum Classic (ETC) $ 28.78
aptos
Aptos (APT) $ 9.52
first-digital-usd
First Digital USD (FDUSD) $ 1.00
blockstack
Stacks (STX) $ 2.55
mantle
Mantle (MNT) $ 1.11
crypto-com-chain
Cronos (CRO) $ 0.134279
cosmos
Cosmos Hub (ATOM) $ 9.03
filecoin
Filecoin (FIL) $ 6.42
bittensor
Bittensor (TAO) $ 521.11
stellar
Stellar (XLM) $ 0.112510
okb
OKB (OKB) $ 52.98
immutable-x
Immutable (IMX) $ 2.14
arbitrum
Arbitrum (ARB) $ 1.14
hedera-hashgraph
Hedera (HBAR) $ 0.084793
render-token
Render (RNDR) $ 7.95
vechain
VeChain (VET) $ 0.040667
kaspa
Kaspa (KAS) $ 0.123660
maker
Maker (MKR) $ 2,873.28
dogwifcoin
dogwifhat (WIF) $ 2.58
the-graph
The Graph (GRT) $ 0.257001
ethena-usde
Ethena USDe (USDE) $ 1.00
pepe
Pepe (PEPE) $ 0.000006
optimism
Optimism (OP) $ 2.36
injective-protocol
Injective (INJ) $ 25.81
theta-token
Theta Network (THETA) $ 2.31