• The SEC has become a target of criticism for its enforcement of regulations on digital assets and firms.
• Crypto executives worry that the SEC has too much power, and that its regulations could prevent the industry from growing in America.
• The SEC is currently handling several high-profile cases against crypto companies, including one against Kraken.
SEC’s Overwhelming Power
The Securities and Exchange Commission (SEC) has made many enemies in the world of cryptocurrency and investment, with multiple digital asset companies arguing that the company holds too much power and enjoys prosecuting firms they see as going against their narrative. Chief policy officer at venture capital firm Andreessen Horowitz (a16z), Brian Quentenz – a former Commodities Futures Trading Commission (CFTC) agent – commented: „The SEC is completely out of control…The United States [needs] to [decide] about whether it will embrace and support innovators in this country.“
Notable Cases Handled by the SEC
One of the most high-profile cases being handled by the SEC is one against popular cryptocurrency trading platform Kraken based in Northern California. The company was forced into settling with them, having to pay a $30 million penalty fee, cease all staking activities and services. Kristin Smith – head executive at crypto lobbying group Blockchain Association – also believes that the agency is taking advantage of their power without considering if these firms are operating within legal bounds or not.
American Innovation Falling Behind
Perianne Boring, founder & CEO at Chamber of Digital Commerce, commented on how “it’s creating new legal precedents“. She believes if this continues then American innovation could fall behind other countries which have adopted cryptocurrency or are looking into doing so. This would give those jurisdictions competitive advantages over America due to their forward thinking approach.
Time Running Out for US Regulation
Quentenz further commented on how “the clock is ticking” for US regulation to catch up with international standards or else other countries would benefit more than America due to its laissez-faire attitude towards cryptocurrencies & blockchain technology innovation.
Conclusion
It seems clear that many feel as though the Securities & Exchange Commission has too much power when it comes to regulating digital assets & firms operating within it & that they’re punishing companies unfairly; something which could cause America to fall behind other countries who are embracing cryptocurrencies & blockchain technology innovation more willingly than they are currently doing so themselves.
