SEC Commissioner Uyeda calls agency’s crypto regulation approach a ‘disaster’

The U.S. Securities and Exchange Commission (SEC) Commissioner Mark Uyeda has labeled the agency’s approach to regulating crypto a “disaster,” and that the agency has “done nothing” to clarify rules.”

Speaking on a Fox Business panel on Thursday (Oct. 10), Uyeda pointed out the reported regulatory gaps left by SEC Chair Gary Gensler’s crypto strategy.

According to Gensler, cryptocurrencies could still be regarded as stores of value, but their potential as a means for everyday payments remains unlikely. He stated that their value must be proven “through disclosure, through use… In the same way one chooses from among the thousands of listed securities.”

"We've done nothing to provide guidance as to what you can and cannot do. Our policies have been a disaster." – SEC Commissioner Mark Uyeda pic.twitter.com/lwDjYVN1X3

— North (@northpool9) October 10, 2024

However, Uyeda criticized the SEC for relying on enforcement actions to regulate crypto firms, rather than creating clear and well-defined rules.

He stated: “Our policies and our approach over the last several years have been just really a disaster for the whole industry.”

Uyeda continued: “We have been sending this policy through enforcement, we’ve done nothing to provide guidance on it, and as a result, this has been achieved by the courts, and different courts have ruled different ways.”

When asked about Gensler’s motivations, Uyeda declined to speculate. However, he noted that Gensler has a strong “perspective” on crypto regulation.

“Within the agency, our agenda is driven by chairman Gary Gensler, and the staff follows his lead,” he added.

Apart from Uyeda, Commissioner Hester Peirce has also encouraged ongoing dialogue and specific rule changes to support the crypto industry’s growth within the United States.

On the same day, ReadWrite reported that Gensler defended the SEC’s aggressive regulation through an enforcement approach to cryptocurrencies. He asked the audience at a New York University event: “Without a cop on the beat, will all our laws be enforced?”

According to him, due to human nature in finance, people tend to “play near the line,” and regulators “sometimes need to take enforcement actions to bring people back to the right side of the line.”

ReadWrite has reached out to the U.S. Securities and Exchange Commission for comment.

Featured image: U.S.-Japan Council / Canva

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