• The SEC has made a lot of enemies in the crypto and investment worlds with their ruleset and prosecuting firms for going against its narrative.
• Several crypto executives feel that the SEC is out of control, going rogue, and has too much power which will cause the US to fall behind the rest of the world.
• Examples such as Kraken being forced into a settlement with the agency, taking a $30 million penalty fee, have been met with criticism from executives such as Brian Quentenz, Kristin Smith and Perianne Boring.
The SEC Has Too Much Power
The Securities and Exchange Commission (SEC) has made a lot of enemies in the crypto and investment worlds over the past several years, with several digital asset companies claiming that it has too much power and pleasure in prosecuting firms it believes go against its narrative.
Among those who feel this way about the SEC is Brian Quentenz – head of policy at venture capitalist Andreessen Horowitz (a16z) – who’s also a former Commodities Futures Trading Commission (CFTC) agent. He commented: „The SEC is completely out of control. They’re going rogue.“ He went on to say that if this continues then America stands to fall significantly behind other nations that are embracing or at least looking into cryptocurrency adoption.
Examples Of Enforcement
One example of an enforcement case handled by the SEC includes popular digital currency trading platform Kraken- based in Northern California- which was recently forced into a settlement with paying a $30 million penalty fee and ceasing all staking activities and services.
The move was met with criticism from Kristin Smith – chief executive of crypto lobby group Blockchain Association – who said: „It certainly feels like a crypto carpet-bombing moment,“ when expressing her concerns about U.S.-based innovators not being supported by regulating bodies within American jurisdiction.
Perianne Boring’s Criticism
Perianne Boring – founder and chief executive officer of Chamber of Digital Commerce – has also been very critical towards how the SEC handles cases relating to cryptocurrencies saying: “We consider this regulation by enforcement because it’s creating new legal precedents without any input from Congress or stakeholders.“
Time Is Ticking
Time is running out for America to make changes or risk falling behind other countries that are embracing innovation within cryptocurrency sector according to Quentenz who commented: “The United States [needs] to [decide] about whether it will embrace and support innovators in this country…That is not what we are seeing in the United States, and the clock is ticking.“
Crypto executives have voiced concerns about how powerful they believe The Securities Exchange Commission (SEC)is when punishing companies for alleged offenses concerning cryptocurrencies such as Kraken being forced into settling with paying a $30 million fee along with ceasing all staking activities & services . It seems clear that unless changes are made soon then America could risk becoming left behind other countries when it comes to adopting & encouraging innovation within cryptocurrency sector