The U.S. Securities and Exchange Commission (SEC) continues to face criticism for its crypto company and crypto asset policies. A recent Forbes article says that since the SEC’s Crypto Assets and Cyber Unit was created in 2017, it has filed about 200 cases and looked into 80 fraud cases.
Related: WSJ: A 0.3% decline in assets “could make Tether technically bankrupt.”
Many people on Twitter (NYSE:TWTR) pointed out that while $1 billion was lost to crypto fraud in 2021, $15 billion was lost because of the SEC v/s Ripple (XRP) litigation, in which the SEC started a $1.3 billion non-fraud action against an enterprise blockchain startup.
In 2021, a crypto scam cost $1 billion.
Due to the dispute between the SEC and Ripple, $15 billion was lost.
Who is the SEC again “protecting”?
According to Gensler, cryptocurrencies are treated the same as the market; however, 200 SEC lawsuits show otherwise.via @forbes
29th of August, 2022— Attorney Jeremy Hogan (@attorneyjeremy1)
The Forbes piece stated, “The SEC’s broad-brush approach, which a priori singles out all crypto offers, exchanges, loans, decentralised financing, non-fungible tokens, and stablecoins, appears guilty unless proven innocent.” “So many lawsuits show that the SEC prefers “regulation by enforcement” to “regulation by rules'”
Criticism regarding SEC Chairman Gary Gensler
Recently, Gensler stated, “We can abandon the notion that crypto financing is exempt from regulation. In contrast, these regulations have existed for decades. They are not being followed by the platforms. ”
In addition, the SEC emphasised that there is no need to handle the cryptocurrency market differently than other financial markets just because it employs a different technology. “Non-compliance is not a natural result of the crypto business model or the crypto technology that supports it,” Gensler said.
Related: Analysis-Payments businesses brace for M&A after value freefall.
While being criticised in public venues, Mark Cuban resorted to Twitter to rant. He said, “Enter and speak with whom?” How do you make an appointment? You’re currently using Calendly, correct? Since you understand crypto lending and finance, why don’t you simply post the clear-cut parameters you desire and invite feedback? ”
According to the Forbes article, “Congress notably enacted the Administrative Procedure Act (APA) in 1946 to oversee agency processes to publish notice of rulemaking in the Federal Register and allow for public comment.” “This typical SEC procedure appears to have never occurred for crypto assets. There is no mention of crypto regulation on the SEC website, either finished or planned.
On the flip side
Numerous crypto frauds masquerade as reputable businesses. Even though the SEC has been criticised for focusing on crypto companies, it is responsible for bringing back $2 billion in financial aid.
Why Should You Care?
In a broader sense, the SEC’s efforts to “regulate by enforcement” are seen as a form of manipulation because decisions are made randomly and without a process, and there are no rules.
Similar accounts
Related: Analysts say the dollar’s strength isn’t over yet in the foreign exchange markets.
Cybersecurity Firms Profit Millions from Cyberattacks.
Mark Cuban Criticizes the SEC’s Cryptocurrency Regulation Approach
