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SEC’s Crypto Regulation Approach a ‘Disaster’ Lacking Clarity, Says Commissioner Mark Uyeda
The United States Securities and Exchange Commission (SEC) Commissioner Mark Uyeda has labeled the agency’s approach to crypto regulation a “disaster” due to the lack of clear guidance.
Uyeda made these remarks during an appearance on a Fox Business panel on October 10, where he highlighted the regulatory gaps left by SEC Chair Gary Gensler’s enforcement-first strategy.
Uyeda criticized the SEC’s practice of regulating through enforcement actions rather than establishing well-defined rules for crypto firms.
“Our policies and our approach over the last several years have been just really a disaster for the whole industry,” Uyeda stated.
He emphasized that instead of providing actionable guidance, the SEC’s approach has led to conflicting court rulings on how cryptocurrencies should be regulated
His comments came shortly after Crypto.com filed a lawsuit against the SEC
The Singapore-based crypto exchange challenged the SEC’s issuance of a Wells Notice, which signals potential enforcement actions
The lawsuit claims that the SEC has overstepped its regulatory boundaries, particularly in asserting that most cryptocurrencies qualify as securities
The SEC’s approach, championed by Gensler, has drawn criticism across the crypto industry for being both aggressive and ambiguous
While Gensler has consistently argued that crypto firms must adhere to existing securities laws, industry players counter that the current regulations are outdated and unsuitable for the digital asset market
The ongoing conflict has sparked frustration among crypto stakeholders seeking clearer rules.
Commenting on the situation, Uyeda suggested a need for a more transparent regulatory framework
“The approach we’re taking appears to be the wrong one,” he said, advocating for clear guidelines to delineate which assets fall under securities regulations.
