The crypto community has left no stone unturned in criticizing the US Securities and Exchange Commission (SEC) and, more importantly, its boss Gary Gensler. The latter’s actions were disputed by members of his own agency.
Gensler even received a political pushback for his actions. But the SEC chief continued to advocate cracking down on digital asset markets, saying he had never seen an industry so routinely violate securities laws.
SEC Approach to Regulation
As Coinbase prepares for a court battle with the SEC, its CEO, Brian Armstrong, had some strong words for the regulatory agency. The executive believes that the SEC has caused “incalculable damage” to the country by choosing to regulate the digital asset space through the application instead of a proactive collaboration between regulators and industry leaders.
In a recent Cheep, Armstrong said,
“I spent the day in DC meeting with members of Congress. We need regulatory clarity in the US for centralized crypto players for many reasons: consumer protection, national security, economic growth, etc. The SEC has caused untold damage to the United States with its policy of regulation by enforcement. We will fight to fix that.”
The top executive of the largest U.S. crypto exchange has also raised the possibility of moving out of the country unless the regulatory climate changes after being warned by the SEC about potential securities law violations.
Coinbase is not the only industry representative to have criticized the financial regulator and its policies.
Web3 venture capital firm Paradigm recently said that the SEC’s attempt to “judge crypto assets that can’t even constitute ‘securities’ into an inadequate disclosure framework is bad policy.” He also claimed that the agency failed to provide crypto entrepreneurs with a viable path to compliance.
Meanwhile, US Representative Warren Davidson also announced his intention to introduce legislation to remove Gensler from office in an attempt to “correct a long series of abuses.”
The SEC’s Crypto War
The SEC and Chairman Gensler’s crypto stance was strongly condemned by Republican members of Congress during Tuesday’s congressional hearing. In opening remarks, House Financial Services Committee Chairman Patrick McHenry (R-NC) called the SEC’s approach to cryptocurrency exchanges “absurd” and lashed out at the lack of clarity.
Despite mounting criticism, the agency remains relentless in its war against cryptocurrencies. SEC Chairman Gary Gensler has defended the crackdown on cryptocurrency markets and reiterated his belief that the agency has sufficient authority to deal with the industry. He also maintained that there is regulatory clarity, adding that he had never seen an industry so routinely break securities laws.
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This post Coinbase CEO Criticizes SEC, Says Gensler-Led Agency Caused Untold Damage To US
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