SEC Criticized for How It Regulates Crypto – Chairman Gensler Says Most Crypto Tokens ‘Have Securities Attributes’ – Bitcoin News Regulation

SEC Criticized for How It Regulates Crypto – Chairman Gensler Says Most Crypto Tokens ‘Have Securities Attributes’ – Bitcoin News Regulation

The US Securities and Exchange Commission (SEC) has been heavily criticized for its approach to regulating the crypto sector. The criticism follows securities regulators’ action against a former Coinbase employee in an insider trading case, in which the SEC named nine crypto tokens listed on Coinbase as securities.

SEC convicted of regulation through enforcement

The US Securities and Exchange Commission (SEC) has been heavily criticized for its approach to regulating the crypto sector after the regulator accused a former Coinbase employee in the case of insider trading. In its complaint, the SEC alleged that the nine crypto tokens listed on Coinbase were securities, which was immediately disclosed contested by Nasdaq’s crypto exchange.

Commodity Futures Trading Commission (CFTC) Commissioner Caroline D. Pham announced a statement about the case on Thursday. she wrote:

The case of SEC v. Wahi is a striking example of ‘regulation by enforcement’.

“The SEC’s filing alleges that dozens of digital assets, including those that could be described as utility tokens and/or certain tokens related to decentralized autonomous organizations (DAOs), are securities,” she said.

Former CFTC Commissioner Brian Quintenz agreed with Pham, tweeting:

Regulation by enforcement, threats, leverage, PR, or any other means outside of the APA rulemaking process is completely inappropriate. Always.

The Administrative Procedure Act (APA) applies to all federal agencies
government. It provides general procedures for different types of rulemaking.

Quintenz said last August that “SEC has no authority over pure commodities or their trading places, be they wheat, gold, oil…. or crypto assets.”

US Senator Pat Toomey (R-PA) also shared his thoughts on the SEC v. Wahi case. On Friday, he tweeted: “Yesterday’s enforcement action is a perfect example of the SEC taking a clear view on how and why certain tokens are classified as securities. However, the SEC did not disclose their position before initiating enforcement action.”

SEC Chairman Gary Gensler shared his thoughts on cryptocurrency regulation in an interview with CNBC on Thursday. “I am neutral about technology, but I am not about investor protection. These are highly speculative asset classes,” he emphasized, elaborating:

There are thousands of tokens, most of which have the attributes of securities.

Gensler cautioned, “As in any area of ​​venture capital and new projects, many projects fail. If you look at the statistics, in fact, most new ventures fail, and it’s important for the public to be informed, to understand the risk. There is a very significant risk in this area.”

Last week, US Congressman Tom Emmer slammed SEC for “breaking up companies outside of its jurisdiction”. He asserted: “Under Chairman Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, luring companies to ‘come in and talk’ with the Commission, then hitting them with enforcement actions, discouraging good-faith cooperation.

Tags in this story

Brian Quintenz, Caroline Pham, CFTC, Coinbase, Crypto regulation, Gary Gensler, insider trading, pat toomey, regulation by execution, SEC, sec v wahi, Securities, Security tokens, Tom Emmer, us congressman, us senators

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

SEC Criticized for How It Regulates Crypto – Chairman Gensler Says Most Crypto Tokens ‘Have Securities Attributes’ – Bitcoin News Regulation

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.




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