SEC’s Crypto Regulation Called a ‘Disaster’ by Commissioner

A U.S. Securities and Exchange Commission (SEC) commissioner has criticized the agency’s approach to regulating cryptocurrencies, calling it a "disaster." The commissioner expressed concerns over the SEC’s heavy reliance on enforcement without offering clear regulatory guidelines, leading to confusion in the courts and uncertainty in the industry.

SEC's Cryptocurrency Regulation Approach Criticized

Mark Uyeda, an SEC commissioner, voiced his disapproval of the agency’s handling of cryptocurrency regulation during an interview on Fox Business. Uyeda admitted that the SEC’s strategy over recent years has failed to provide the necessary clarity, stating:

"Our policies and our approach over the last several years have been just really a disaster for the whole industry."

He pointed out that the SEC has been enforcing regulations without first offering proper guidance to the market, which has led to inconsistent court rulings and widespread uncertainty. This method of “policy through enforcement,” Uyeda noted, has done little to help the industry navigate the regulatory landscape.

Crypto.com’s Lawsuit Against the SEC

Uyeda’s comments followed a lawsuit filed by Crypto.com on Tuesday, accusing the SEC of overstepping its authority by regulating cryptocurrencies as securities without proper jurisdiction. While Uyeda did not comment directly on the lawsuit, he echoed broader concerns, stating that the SEC has failed to provide clear guidance on which digital assets fall under securities laws.

"We have not provided interpretive guidance as to what you can and cannot do," Uyeda explained, adding that regulators need to first define what falls under securities law before any meaningful discussions can take place.

Call for Clarity

Uyeda emphasized the importance of regulatory clarity, explaining that the industry can’t function properly without knowing what is subject to securities laws. His criticism reflects growing frustration among industry players, who have long sought more specific guidelines from the SEC on how cryptocurrencies should be classified and regulated.

What are your thoughts on Commissioner Uyeda's comments and the Crypto.com lawsuit? Let us know in the comments below.