During a recent interview, US Securities and Exchange Commission (SEC) commissioner Mark Uyeda admitted that the agency’s crypto approach has been “a disaster” for the industry. Speaking to Fox journalist Maria Bartiromo, Uyeda noted the agency has yet to provide the sector with clear regulatory standards.
Throughout the last year, the agency has embraced regulation by enforcement in regard to policing the crypto sector. Moreover, SEC chairman Gary Gensler has consistently stated his belief that most crypto firms refuse to provide proper disclosure and investor protection. Therefore, they have seen a surge in legal action taken against many of these firms.
Also Read: Crypto.com Receives Wells Notice From SEC
SEC Commissioner Says Crypto Approach Has Resulted in Disaster
Cryptocurrency exchange, Crypto.com, has recently announced a lawsuit against the SEC. The decisions were made after the platform received a Wells Notice, notifying them of impending enforcement action from the agency. In response, the company said the lawsuit was a necessity if they were to protect the future of crypto in the United States.
That may be a prevailing feeling throughout the agency itself. In a recent interview on Fox’s Mornings With Maria, SEC Commissioner Mark Uyeda admitted that their crypto approach has been a disaster for the industry as a whole. Moreover, he noted that the lack of clear guidance has been a key factor in that.
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“I think our policies and our approach over the last several years have been just really a disaster for the whole industry,” Uyeda said. “We have been sending this ‘policy through enforcement,’ We’ve done nothing to provide guidance on it,” he added. “And as a result, this has been achieved by the courts. And different courts have ruled different ways.”
Indeed, the agency had suffered a high-profile legal defeat to Ripple. Yet, that is one that the SEC has already filed an appeal to correct. The Crypt.com litigation is the latest in that trend. Although Uyeda didn’t speak on that lawsuit, he did discuss the overarching issue.
“While I won’t comment on the specifics of this litigation, what has gone on is part of a broader frustration with the fact that we have not provided interpretive guidance as to what you can and cannot do and if you are involved in some sort of securities offering, how you register, how you get regulated as a broker-dealer, how you get registered as an exchange.”