The US Securities and Exchange Commission (SEC) has been heavily criticized for its approach to policing the crypto industry. The criticism follows the securities regulator’s action against a former Coinbase employee in a trade case, in which the SEC named 9 crypto tokens listed on Coinbase as securities.
SEC criticized for regulation by app
In the United States, the Securities And Exchange Commission (SEC) was heavily criticized for taking a coercive approach to policing the crypto sector when the regulator charged a former Coinbase employee in a trading case. In its grievance, the SEC explicitly states that 9 crypto tokens listed on Coinbase are securities, a finding immediately controversial by the Nasdaq-listed crypto exchange.
Commodity Future Commission (CFTC) Commissioner Carlovingian D. Pham issued a press release regarding the case on Thursday. She wrote:
“The SEC v. Wahi case could be a stark example of ‘regulation by enforcement.’
“The SEC’s grievance alleges that dozens of digital assets, as well as those that may well be defined as utility tokens and/or linked tokens with reference to Suburban Autonomous Organizations (DAOs), are securities,” a she declared.
Former CFTC Commissioner Brian Quintenz agreed with Pham, tweeting:
Regulation through social control, threats, leverage, public relations, or the like suggests that, on the other side, the APA method of rule-making is wholly inappropriate. Still.
The Administrative Procedure Act (APA) applies to all or all federal government agencies.
government. It provides the final procedures for various types of rulemaking.
Quintenz said in August last year that “the SEC has no authority over pure commodities or their places of trading, whether or not those commodities are wheat, gold, oil…. or crypto assets.
US lawmaker Pat Toomey (R-PA) also shared his opinion on the SEC v. Wahi case. He tweeted on Friday: “Yesterday’s social scrutiny action is a good example of the SEC having a transparent view on how and why linked tokens are classified as securities. However, the SEC did not disclose its reading before launching an associated social control action.
SEC Chairman Gary Gensler shared his thoughts on cryptocurrency regulation in an interview with CNBC on Thursday. “I’m neutral about technology, but I’m not concerned about capitalist protection. These are extremely speculative quality categories,” he said, adding:
There are thousands of tokens, most of which have title attributes.
Gensler warned, “Like all capital and novelty fields, many fail. You investigate the statistics, in fact, most new businesses fail, and it’s vital that the general public gets the speaking act and perceives the chance. There is a terribly vital risk in this area.
Last week, U.S. Representative Tom Corn also criticized the SEC for “crackdowns on companies outside its jurisdiction.” He claimed, “Under Chairman Gensler, the SEC has become a power-hungry regulator, politicizing social control, harassing corporations to ‘come and talk’ to the Commission, then hit them with social control actions, discouraging cooperation in good faith.
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