SEC ‘Playing Regulatory Jenga’: Commissioner Crenshaw Slams Agency’s New Crypto Approach
The post SEC ‘Playing Regulatory Jenga’: Commissioner Crenshaw Slams Agency’s New Crypto Approach appeared on BitcoinEthereumNews.com. The sole Democratic Commissioner at the US Securities and Exchange Commission (SEC), Caroline Crenshaw, recently criticized the agency’s new regulatory approach toward cryptocurrencies, warning that the watchdog is playing a “dangerous” game. Crypto Regulation’s Jenga Tower In her remarks at the SEC Speak event, SEC Commissioner Caroline Crenshaw said that the regulatory agency is undermining its decades of work while staring at “alarming market volatility, emerging risks, and calls for deregulatory action in all corners of our markets.” The Democratic Commissioner affirmed on Monday that the watchdog is “playing a game of regulatory Jenga,” with their “proverbial Jenga Tower,” comprised of “a set of discrete but interrelated rules and laws, deeply and carefully developed over the years.” Criticizing the SEC’s new regulatory approach, Crenshaw questioned how many blocks the Commission can pull “before the tower gives away,” arguing that it has already shaken the tower by pulling institutional integrity, failing to enforce laws, and ignoring potential market risks. She affirmed that the “most devastating” Jenga piece to go was the SEC staff, which has declined by nearly 15% in the past four months. Additionally, Crenshaw blasted the agency’s recent use of guidance on topics like memecoins and crypto mining “to walk away from rules and upend longstanding practice.” In particular, our statements on these crypto-related issues are the equivalent of a wink and nod intended to convey that we do not plan to rigorously apply our laws in certain, specific situations. For example, the statements pull at the threads of our most foundational case law while meekly suggesting – in footnotes – that we still might do the required facts and circumstances analysis in each case. The Commissioner stated that crypto presents “certain novel risks,” which could lead the agency to “repeat hard lessons with high stakes” if they fail…
The post SEC ‘Playing Regulatory Jenga’: Commissioner Crenshaw Slams Agency’s New Crypto Approach appeared on BitcoinEthereumNews.com.
The sole Democratic Commissioner at the US Securities and Exchange Commission (SEC), Caroline Crenshaw, recently criticized the agency’s new regulatory approach toward cryptocurrencies, warning that the watchdog is playing a “dangerous” game. Crypto Regulation’s Jenga Tower In her remarks at the SEC Speak event, SEC Commissioner Caroline Crenshaw said that the regulatory agency is undermining its decades of work while staring at “alarming market volatility, emerging risks, and calls for deregulatory action in all corners of our markets.” The Democratic Commissioner affirmed on Monday that the watchdog is “playing a game of regulatory Jenga,” with their “proverbial Jenga Tower,” comprised of “a set of discrete but interrelated rules and laws, deeply and carefully developed over the years.” Criticizing the SEC’s new regulatory approach, Crenshaw questioned how many blocks the Commission can pull “before the tower gives away,” arguing that it has already shaken the tower by pulling institutional integrity, failing to enforce laws, and ignoring potential market risks. She affirmed that the “most devastating” Jenga piece to go was the SEC staff, which has declined by nearly 15% in the past four months. Additionally, Crenshaw blasted the agency’s recent use of guidance on topics like memecoins and crypto mining “to walk away from rules and upend longstanding practice.” In particular, our statements on these crypto-related issues are the equivalent of a wink and nod intended to convey that we do not plan to rigorously apply our laws in certain, specific situations. For example, the statements pull at the threads of our most foundational case law while meekly suggesting – in footnotes – that we still might do the required facts and circumstances analysis in each case. The Commissioner stated that crypto presents “certain novel risks,” which could lead the agency to “repeat hard lessons with high stakes” if they fail…
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