The SEC’s Priority Lies Elsewhere in Its Battle Against Cryptocurrency: Regulatory Rulemaking
Gary Gensler previously likened the Securities and Exchange Commission (SEC) to a “cop on the beat” when it comes to regulating the cryptocurrency industry.
Despite this characterization, the SEC has been predominantly focused on enforcement actions rather than creating clear regulatory guidelines for the multi-trillion dollar crypto sector. This lack of proactive rule-making has led to confusion and legal challenges for many crypto companies.
Gensler, as the SEC chairman, has suggested that most digital assets should be treated as “crypto asset securities,” even though there are no specific regulations in place to support this assertion. This has created uncertainty for crypto companies that are required to comply with evolving securities laws without clear guidance.
Challenges Faced by Crypto Companies
The SEC has not issued any regulatory guidelines regarding the registration of digital assets, leaving companies like BlockFi vulnerable to legal action for non-compliance. Gensler’s inconsistent views on the classification of cryptocurrencies add to the industry’s challenges.
Defining Crypto as Securities
The SEC has been reluctant to establish clear definitions for what constitutes a security in the crypto space, leaving companies in a legal gray area. While the SEC claims to be working on comprehensive crypto policies, the lack of specificity and clarity hinders progress in the industry.
Balancing Enforcement and Guidance
Gensler’s argument that existing securities laws apply adequately to crypto overlooks the need for new rules tailored to the unique features of digital assets. The SEC’s punitive approach towards enforcement raises questions about its commitment to providing clear regulatory guidance.
Global Trends in Crypto Regulation
While other countries are implementing permanent regulatory frameworks for cryptocurrencies, the US risks falling behind due to the SEC’s lack of proactive rule-making. The industry requires urgent regulatory clarity to thrive and secure public trust.
Source link
#Facto #War #Crypto #Regulatory #Rulemaking #Isnt #SECs #Priority #Finance #Magnates
