The U.S. Securities and Exchange Commission (SEC) has been heavily criticized for its approach to control the crypto sector. The criticism followed the securities regulator’s action against a former Coinbase worker in a trading case, during which the SEC named 9 crypto tokens listed on Coinbase as securities.
SEC Slammed for Regulation by Enforcement
The U.S. The Securities And Exchange Commission (SEC) has been heavily criticized for taking an enforcement approach to control the crypto sector when the regulator charged a former Coinbase worker in a trading case. In its grievance, the SEC explicitly states that 9 crypto tokens listed on Coinbase are securities, a finding straight off controversial by the Nasdaq-listed crypto exchange.
Commodity Future Commission (CFTC) Commissioner Carlovingian D. Pham discharged a press release concerning the case Thursday. She wrote:
“The case SEC v. Wahi could be a placing example of ‘regulation by enforcement.”
“The SEC grievance alleges that dozens of digital assets, as well as those who may well be delineated as utility tokens and/or bound tokens with reference to suburbanized autonomous organizations (DAOs), are securities,” she said.
Former CFTC Commissioner Brian Quintenz concurred with Pham, tweeting:
Regulation by social control, threats, leverage, PR, or the other suggests that on the far side the APA rulemaking method is completely inappropriate. Always.
The Administrative Procedure Act (APA) applies to all or any agencies of the federal
government. It provides the final procedures for varied sorts of rulemaking.
Quintenz said in August last year that “the SEC has no authority over pure commodities or their commercialism venues, whether or not those commodities are wheat, gold, oil …. or crypto assets.”
U.S. legislator Pat Toomey (R-PA) additionally shared his opinion on the SEC v. Wahi case. He tweeted Friday: “Yesterday’s social control action is a good example of the SEC having a transparent opinion on how and why bound tokens classify as securities. however the SEC did not disclose their read before launching associate social control action.”
SEC Chairman Gary Gensler shared his opinion on cryptocurrency regulation in an interview with CNBC Thursday. “I’m neutral concerning technology, however I’m not concerned about capitalist protection. These are extremely speculative quality category,” he emphasised, elaborating:
There are thousands of tokens, most of which have attributes of securities.
Gensler warned: “Just like every field of capital and new comes, several come to fail. You investigate the statistics, in fact, most new ventures fail, and it’s vital that the general public get the speech act, and perceive the chance. There’s a terribly vital risk in this field.”
Last week, U.S. representative Tom corn additionally slammed the SEC for “cracking down on firms outside its jurisdiction.” He asserted: “Under Chair Gensler, the SEC has become a power-hungry regulator, politicizing social control, harassing firms to ‘come in and talk’ to the Commission, then hitting them with social control actions, discouraging good-faith cooperation.”