The SEC Plans Not to Back Down on its Crypto Stance
- The SEC has continuously called for stricter policies on the crypto industry.
- The United States is edging closer to regulating the crypto market.
The US Securities and Exchange Commission has been slammed for its “hunt” of the crypto space, with some claiming its approaches would halt innovation. However, despite such sentiments, the financial regulator seems focused on investigating the industry and bringing enforcement actions against crypto firms. Gurbir Grewal, the SEC’s enforcement director, said the commission has no plans to slow down its pace due to the ongoing narrative.
Grewal responded to claims that the SEC somewhat unfairly targeted crypto firms in its enforcement actions as opposed to traditional markets or products. Grewal noted that the SEC’s approach was to protect locals and “non-white and lower-income investors” from the loopholes in the system. The enforcement director claimed the regulator had a duty to protect Americans.
Grewal believes critics are upset since the SEC is not “giving crypto a pass from the application of well-established regulations and precedents.” He further claimed that the SEC would continue to investigate crypto firms and bring appropriate cases to court. He said,
Non-enforcement of the most fundamental rules underlying our regulatory structure would be a betrayal of trust and not an option for us […] We will continue to bring actions regardless of what label is used or technology is involved (or not). Failure to do so would constitute an abdication of our responsibilities
Republican senator Tom Emmer previously accused the SEC of politicizing regulation and failing to go after major crypto platforms and not “small fish” projects. The US senator later slammed Grewal for embracing a power-drunk approach in investigating crypto firms.
US lawmakers have accused the SEC of illegally expanding its jurisdiction to investigate crypto firms. Grewal later confirmed that the SEC had taken enforcement actions against companies that were not under its jurisdiction. Senator Tom responded to Grewal’s admission by describing the commission as a power-hungry agency. He wrote in a tweet,
Under Chair Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to “come in and talk” to the Commission, then hitting them with enforcement actions, discouraging good-faith cooperation.
The SEC has continuously called for stricter policies to regulate the crypto industry. However, it remains unknown if the United States would want to fully regulate the market and risk affecting innovation.