The US Securities and Exchange Commission (SEC) and its Chief, Gary Gensler, have faced strong criticism from the crypto community. Despite dissent from members of the agency and political pushback, Gensler continues to defend the SEC’s crackdown on the digital asset market, citing the industry’s routine breach of securities laws.
The SEC’s Enforcement-Based Approach to Regulation
Coinbase’s CEO, Brian Armstrong, has criticized the SEC for causing “untold harm” to the US by choosing to regulate the digital asset space through enforcement, rather than collaborating proactively with industry leaders. Armstrong has expressed the need for regulatory clarity to protect consumers, national security, and drive economic growth.
Other industry representatives, such as Web3 venture capital firm Paradigm, have also criticized the SEC’s policies, claiming that it fails to provide a viable path to compliance for crypto entrepreneurs. United States Representative Warren Davidson has even announced plans to introduce legislation to remove Gensler from his position.
The SEC’s Crypto War Continues
The SEC’s crypto stance drew heavy condemnation from Republican members of Congress during a recent hearing. Despite mounting criticisms, Gensler defends the agency’s crackdown, believing it has sufficient authority to deal with the industry and reiterating that the agency provides regulatory clarity.
