United States Securities and Exchange Commission (SEC) Commissioner Mark Uyeda has described the agency’s crypto regulation methods as a “disaster” due to insufficient guidance.
Uyeda shared these views during a Fox Business panel on October 10, criticizing SEC Chair Gary Gensler’s preference for enforcement over establishing clear rules for crypto firms.
He pointed out that the SEC’s current strategy has led to conflicting court decisions regarding cryptocurrency regulation. Uyeda’s comments followed Crypto.com’s lawsuit against the SEC, challenging the agency’s assertion that most cryptocurrencies qualify as securities.
The SEC’s aggressive yet ambiguous stance, led by Gensler, has faced criticism across the industry. While Gensler insists crypto firms comply with existing securities laws, industry players argue that these regulations are outdated for the digital asset market. Uyeda calls for clearer regulatory guidelines, noting, “The approach we’re taking appears to be the wrong one.”
Despite not delving into Gensler’s motivations, Uyeda acknowledged that the SEC’s agenda aligns with Gensler’s vision. Alongside Commissioner Hester Peirce, Uyeda has advocated for a forward-thinking crypto policy, though the agency’s direction is ultimately set by Gensler.
The SEC is also under increased scrutiny for its “regulation-by-enforcement” strategy. Critics claim the agency has not provided a clear regulatory framework, opting for legal actions against industry players instead. A coalition of seven U.S. states, led by Iowa Attorney General Brenna Bird, has challenged the SEC’s crypto regulations, arguing they overreach and could hinder innovation in the sector. The coalition includes states like Arkansas, Indiana, Kansas, Montana, Nebraska, and Oklahoma.
Earlier this year, Commissioner Peirce remarked that the SEC operates in an “enforcement-only mode” when regulating cryptocurrencies.
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