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- SEC Commissioner Mark Uyeda admitted that the agency’s handling of the crypto industry has caused widespread issues, calling it a “disaster” for the sector
- The SEC’s approach to regulating cryptocurrencies has been widely criticized for lacking clear guidance and relying on enforcement actions
- Lawsuits from companies like Crypto.com and Coinbase against the SEC reflect the growing frustration over regulatory ambiguity and overreach
US Securities and Exchange Commission (SEC) Commissioner Mark Uyeda recently admitted that the agency’s approach to the crypto sector has been a “disaster.” Uyeda told Fox Business that the SEC’s lack of clear guidelines has negatively impacted the cryptocurrency industry and acknowledged that the agency’s approach, which has largely relied on enforcement actions rather than regulatory clarity, has created significant challenges. His remarks come amidst mounting lawsuits from major crypto firms like Crypto.com, which accuse the SEC of overstepping its authority.
SEC Has Done “Nothing to Provide Guidance”
Uyeda’s comments underline the ongoing tensions between the SEC and the crypto industry. Crypto firms have long been calling for more explicit rules on what constitutes a security and how digital assets should be regulated.
However, instead of providing interpretive guidance, the SEC has largely enforced its policies through legal actions, leaving companies uncertain about compliance. Uyeda admitted, “We have done nothing to provide guidance,” pointing out that this approach has led to inconsistent rulings in different courts. This is despite several high-profile crypto companies, including Coinbase, asking the SEC for guidance in the past, only to receive legal threats instead.
Crypto Companies Fighting Back
The issue has sparked lawsuits, most recently an effort from Crypto.com to pre-empt action from the SEC, which claims the agency is unlawfully expanding its jurisdiction by categorizing nearly all crypto assets as securities.
Similarly, Coinbase launched legal action against the SEC earlier this year, accusing it of pressuring banks to cut ties with crypto firms. These companies argue that the SEC’s enforcement tactics stifle innovation and harm the industry.
Uyeda’s remarks reflect a broader frustration within the crypto community and highlight the need for a more balanced and transparent regulatory framework. As the industry continues to grow, clearer guidelines from the SEC could help resolve ongoing conflicts and support innovation without compromising investor protection