Gary Gensler, the current head of the Securities and Exchange Commission (SEC), may soon face termination from his position. This follows a recent announcement by the SEC regarding the reconsideration of the definition of an “exchange”. In response to this announcemen...
This follows a recent announcement by the SEC regarding the reconsideration of the definition of an “exchange”.
Davidson claims that this measure is necessary to address a history of mistreatment by the SEC.
According to Hester Peirce, the SEC’s approach to new technology has changed, and the regulator is now trying to solve problems that don’t exist.
She argues that the SEC has been resistant to altering current regulations to accommodate new technologies and business practices, instead requiring entrepreneurs to register and taking enforcement action against those who cannot.
Peirce also criticizes the SEC’s use of the notice-and-comment rulemaking process, calling it a threat due to the ambiguity and scope of the proposed rule changes and the SEC’s limited understanding of the space. She suggests that a concept release would have been more appropriate.
The SEC has faced criticism for its high-profile actions against crypto companies, such as Ripple, LBRY, and Coinbase, and its focus on staking and stablecoins.
Critics argue that the SEC is using enforcement actions to create law on a case-by-case basis, rather than establishing clear regulations.