- SEC Commissioner Mark Uyeda called the agency’s cryptocurrency policy a “disaster” and pointed to a lack of clarity and direction.
- He criticizes President Gary Gensler for favoring repression over clear guidelines, which is creating total confusion in the crypto industry.
- Crypto.com’s lawsuit against the SEC illustrates the growing frustration with this approach, with calls for radical reform to support innovation in the United States.
October 10, 2024 Mark Uyeda, Commissioner of the Securities and Exchange Commission (SEC) of the United States has harshly criticized the agency’s cryptocurrency policy, calling its approach a “disaster. During his intervention on Fox Business, Uyeda spared no effort in pointing out the ineffectiveness of the current strategy, which he said sorely lacks clarity and direction.
According to Uyeda, rather than setting clear guidelines for crypto businesses, the SEC chairman, Gary Genslerhe favored an approach based on enforcing the rules through repression, which left the entire industry in complete disarray. It emphasizes:
Our policies and approach over the past few years have been a disaster for the entire industry. We passed these policies through enforcement without providing clear guidance.
This statement echoes numerous criticisms leveled against it DRY in recent years, when the lack of a clear regulatory framework often led to litigation, leaving key issues to be decided by the courts, sometimes with conflicting judgments. This situation has reinforced the uncertainty hovering over the crypto ecosystem.
The case of Crypto.com: a revealing example
Critics Mark Uyeda occurred on the platform Crypto.com filed a lawsuit with the SECaccusing the agency of abuse of power. Singapore based crypto exchange contests and Instructions for Wells issued by the company DRYa document warning of possible impending legal action. At the heart of the matter is the question of whether most cryptocurrencies should be classified as financial securities. The SEC’s position that almost all cryptocurrencies fall into this category is strongly contested by much of the crypto industry.
This legal action illustrates the growing frustration in the sector SEC regulation methodconsidered too strict and poorly adapted to the nature of digital assets. For many in the sector, the current rules for financial securities simply do not fit the specifics of cryptocurrencies.
Policy dictated by Gary Gensler
Mark Uyeda did not hesitate to question the effectiveness of the approach defended by Fr Gary Genslerwhich it considers inappropriate for the regulation of the digital asset market. He believes that before taking enforcement action, the agency should clearly define what falls under the securities laws and what does not. Explains:
The approach we are taking seems to be wrong. We need to establish clear guidelines and interpretations of what does and does not fall under the securities laws.
Although he refused to speculate about it Gensler’s personal motivations, Uyeda acknowledged that the SEC chairman has a strong opinion on how cryptocurrency regulation should proceed. However, he laments the fact that this one-sided vision is imposed on the entire agency, leaving little room for dissent.
Internally, Uyeda and commissioner Hester Peirce they are known to be more supportive of progressive policies regarding cryptocurrencies. However, as Uyeda points out, the agency’s final decisions are governed instructions from Gary Gensler. It declares:
Within the agency, our agenda is dictated by President Gary Gensler. All employees follow his approach.
The Future of Cryptocurrency Regulation in the United States
Open criticism Mark Uyeda reflects a growing unrest in the crypto industry face to face attitude DRYperceived as repressive rather than constructive. The lack of clear rules continues to weigh heavily on crypto businesses operating in the United States, and several voices, including Uyeda, are now calling for a radical change in the way the regulator approaches the sector.
More and more it seems that without reforming the SEC’s current approach, tensions between the agency and the crypto industry will only increase, at the expense of innovation and economic development in the United States.
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