Securities and Exchange Commission (SEC) criticized for how it regulates cryptocurrencies – President Gensler says most tokens have the attributes of securities – Bitcoin Regulatory

The US Securities and Exchange Commission (SEC) has come under fire for its approach to regulating the cryptocurrency sector. The criticism came after the securities regulator took action against a former Coinbase employee in an insider trading case, in which the SEC designated nine crypto tokens listed on Coinbase as securities.

SEC criticized for enforcement regulation

The US Securities and Exchange Commission (SEC) has come under fire for its enforcement approach to regulating the crypto sector after the regulator accused a former Coinbase employee in an insider trading case. The Securities and Exchange Commission stated in its complaint that nine cryptocurrency tokens listed on Coinbase are securities, a finding that was promptly disputed by the Nasdaq-listed cryptocurrency exchange.

Commodity Futures Trading Commission (CFTC) Commissioner Caroline de Femme A statement About the case Thursday. I wrote:

The case of SEC v. Wahi is a stark example of “regulation by enforcement”.

“The SEC complaint alleges that dozens of digital assets, including those that can be described as interest tokens and/or certain tokens related to Decentralized Autonomous Organizations (DAOs), are securities,” it said.

Brian Quentins, a former CFTC commissioner, agreed with Fam, tweeting:

Regulation by enforcement, threats, influence, public relations, or any other means outside the APA rule-making process is completely inappropriate. Always.

The Administrative Procedures Act (APA) applies to all federal agencies
Government. Provides general procedures for different types of rulemaking.

Quentins said in August of last year that “the SEC has no authority over pure commodities or where they are traded, whether those commodities are wheat, gold, oil… or crypto assets.”

US Senator Pat Tommy (R-PA) also shared his opinion in SEC v. Wahi. He tweeted on Friday: “Yesterday’s enforcement action is an excellent example that the SEC has a clear say on how and why certain tokens are classified as securities. However, the SEC failed to disclose its view before initiating Executive action.

SEC President Gary Gensler shared his opinion on crypto regulation in an interview with CNBC on Thursday. “I am neutral about technology but I am not concerned with investor protection. He stressed that this is a highly speculative asset class,” explaining:

There are thousands of tokens, and most of them have stock attributes.

Gensler cautioned: “Just like any area of ​​venture capital and new ventures, many projects fail. You look at the statistics, in fact, most new ventures fail, and it’s important for the public to get disclosure, and understand the risks. There are very high stakes in this. the field “.

Last week, US Congressman Tom Emer criticized the Securities and Exchange Commission for “cruising companies outside their jurisdiction.” “Under Gensler’s presidency, the SEC has become a power-hungry regulator, politicizing enforcement, enticing companies to ‘come and speak’ to the Commission and then hit them with enforcement action, discouraging good-faith cooperation,” he emphasized.

Tags in this story

Brian Quentins, Caroline Fahm, CFTC, Coinbase, crypto regulation, Gary Gensler, insider trading, pat toomey, regulation by enforcement, SEC, sec v wahi, securities, security tokens, tom emmer, US congressman, senator American

What do you think of how the SEC regulates the crypto sector? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

photo credits: Shutterstock, Pixabay, Wikicommons

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