The United States Securities and Exchange Commission’s approach to regulating crypto is a “disaster,” and the agency has “done nothing” to clarify rules, says SEC commissioner Mark Uyeda.

Uyeda claimed on an Oct. 10 Fox Business panel that SEC Chair Gary Gensler had been enforcing crypto policy without ever providing clear rules or guidance for crypto firms to follow. 

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

“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,” Uyeda said. 

Mark Uyeda described the SEC’s approach to crypto regulation as a “disaster.” Source: Fox Business

Uyeda’s comments came a day after crypto exchange Crypto.com sued the SEC, saying the regulator issued it with a Wells Notice — a document warning of a potential enforcement action. 

In the lawsuit, the Singapore-based crypto exchange alleged the SEC overstepped its authority and challenged the regulator’s view that almost all cryptocurrencies should be considered securities. 

Many in the crypto industry have criticized Gensler for what they claim is a harsh and largely unclear approach to regulating crypto in the US. 

Gensler has repeatedly said that crypto firms need to comply with securities laws, but crypto firms have rejected the demand, claiming the SEC’s rules are unfit and impractical for crypto. 

“The approach we’re taking appears to be the wrong one,” Uyeda said when asked about the efficacy of the SEC’s digital assets policymaking.

“We need to lay out some clear guidance and interpretations on what falls within and what falls outside the securities laws,” he said.

Uyeda remained tight-lipped when asked about Gensler’s personal motivations behind his approach to crypto enforcement but conceded that Gensler maintains a “perspective” on how best to regulate crypto. 

Uyeda and fellow commissioner Hester Peirce often vote for more progressive crypto policy moves, but he says the agency is ultimately ruled by what Gensler believes to be the correct course of action. 

“Within the agency, our agenda is directed by the Chairman Gary Gensler. The staff all follow his lead,” said Uyeda. 

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