SEC Commissioner Mark Uyeda Criticizes Agency’s Crypto Policy, Calling It a ‘Catastrophe

SEC Commissioner Mark Uyeda has sharply criticized the agency’s handling of cryptocurrency regulations, describing it as a “disaster” and accusing the SEC of providing no clear rules for the industry. Uyeda’s comments came during an appearance on an Oct. 10 Fox Business panel, where he pointed out that SEC Chair Gary Gensler has been enforcing crypto policies without offering the necessary guidance for companies to adhere to.

“Our policies over the past few years have been a disaster for the entire industry,” Uyeda stated. “We’ve been relying on enforcement to set these policies without offering any clear guidance. Consequently, courts have been left to sort out the details, leading to conflicting decisions.”

These remarks followed a lawsuit filed by the crypto exchange Crypto.com, which challenged the SEC’s actions after receiving a Wells Notice — a formal notice of potential enforcement. The exchange, based in Singapore, claims that the SEC has gone beyond its jurisdiction and disputes the agency’s position that most cryptocurrencies should be classified as securities.

The SEC’s approach under Gensler has been met with widespread criticism from the crypto industry, where many argue that the regulator’s approach is overly aggressive and lacks clarity. Gensler has repeatedly urged crypto firms to comply with existing securities laws, but companies in the space argue that these rules are not suited to the unique nature of digital assets.

Uyeda expressed doubts about the effectiveness of the SEC’s current strategy. “The path we’re on doesn’t seem to be the right one,” he said, emphasizing the need for clear guidance on what falls under securities regulations.

While Uyeda refrained from speculating on Gensler’s personal motivations for his crypto policy, he acknowledged that the SEC chair holds a strong perspective on how digital assets should be regulated. Uyeda, along with fellow Commissioner Hester Peirce, has advocated for more forward-thinking crypto policies, but noted that the agency’s direction is largely determined by Gensler.

“Ultimately, it’s Chair Gensler who sets the agenda within the SEC, and the staff follows his lead,” Uyeda remarked.

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