- John Reed Stark criticizes the crypto people for blindly opposing the SEC.
- He mentions the phrase “Regulation By Enforcement” to be “Bogus”.
John Reed Stark, a former SEC official has penned down his opinion about the phrase “SEC Regulation By Enforcement (RBE)”. He thinks the expression is “bogus”, which is used by the “Big Crypto” to misguide the actions taken by SEC.
He begins the blog by mentioning quotes from crypto promoters who are well-known figures from the crypto industry and the SEC troop. People like Coinbase CEO Brain Armstrong, Gemini co-founder Cameron Winklevoss, and SEC Commissioner Hester Peirce were jotted down as examples.
Stark criticizes the above-mentioned people for blindly opposing the SEC in implementing the regulation. And categorizes them to be the “Cacophonous Chorus of RBE”. Simultaneously, he also points out the statement made by Gary Gensler, the present SEC Chair.
“Some market participants may call this regulation by enforcement……I just call it enforcement.”
SEC Enforcement Actions
The number of enforcement actions taken by the SEC is increasing year by year, and the crypto firms are accusing the regulatory authorities for this. The crypto companies are requesting the SEC to lay down the set of rules to be followed. But the Securities and Exchange Commission seems to be developing the law case-by-case.
SEC 🇺🇸Crypto Enforcement Actions 2013-2022 pic.twitter.com/yGEtTyYtsH— Crypto India (@CryptooIndia) January 21, 2023
It is to be noted that in the last few years, SEC actions have been filed and SEC became a rival for many large and sought-after companies. Though Stark concludes the article by stating “SEC’s crypto-mission is spot-on’’ and the “SEC staffers are merely doing their job”.
The certain problem is many of the actions or cases are filed when it is too late or too early. Also, the sources for fines and penalties collected from these crypto firms’ are not investigated. All these actions in the end ultimately affect the investors only.