Regulators Criticized for Timing of Crypto Regulations
Two Republican members of the U.S. House of Representatives have criticized the Securities and Exchange Commission (SEC) for their approach to regulating cryptocurrency. They believe that the SEC’s actions were timed to undermine congressional efforts to write comprehensive legislation.
Key Points:
- The SEC’s regulatory approach is seen as regulatory gaps being closed by enforcement rather than comprehensive legislation.
- This approach creates confusion and lacks customer protection.
- Hill and Johnson suggest that the SEC’s actions are timed to coincide with related congressional activity for maximum publicity and political impact.
- The collapse of major crypto businesses and aggressive regulatory moves have led to companies seeking more favorable jurisdictions.
- Hill and Johnson argue that legislation would be more effective in preventing future collapses of digital asset firms rather than relying on enforcement actions after the damage is done.
Hot Take:
The SEC’s regulatory actions in the crypto industry have faced criticism from Republican lawmakers who believe that enforcement-based regulation creates confusion and lacks customer protection. They also suggest that the timing of the SEC’s actions is calculated for maximum publicity and political impact. Hill and Johnson argue that comprehensive legislation would be more effective in preventing collapses and protecting the public. The invitation for “productive engagement” from the SEC indicates a desire for collaboration between regulators and lawmakers in developing a regulatory framework for the crypto industry.
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