- The commissioner continued by suggesting that Gensler’s strong anti-crypto rules may have prevented many crypto scandals.
- The majority of Gensler’s cryptocurrency docket has been unraveled over the last two weeks by Peirce and her colleagues.
The head of the US SEC’s new crypto task force seemed to attribute the growth of fraud in the sector over the last several years to the policy created by the agency’s previous chair, Gary Gensler. This comes less than a day after the SEC officially dropped its action against Coinbase.
SEC Commissioner Hester Peirce contended in a statement released on Friday. That the agency actually accelerated the spread of fraud and misconduct under former President Joe Biden. By focusing on the cryptocurrency sector with extensive enforcement actions and adamantly refusing to develop industry-specific regulations.
Regulation by Enforcement Approach
According to Peirce, the previous Commission’s decision to transfer its regulatory function to the Division of Enforcement through a massive regulation-by-enforcement initiative hurt the American public. Also, had a negative impact on the industry. And made it more difficult for the Commission’s knowledgeable and committed professional staff to apply their knowledge as it was meant to be applied.
The commissioner continued by suggesting that Gensler’s strong anti-crypto rules may have prevented the many high-profile crypto scandals of the last four years. Including the $32 billion collapse of FTX.
According to Peirce, the American public suffered because situations where the law is ambiguous serve as both safe havens for criminals. And unfriendly conditions for law-abiding citizens who are really attempting to address society’s issues and needs.
The majority of Gensler’s cryptocurrency docket has been unraveled over the last two weeks by Peirce and her colleagues. Who have dismissed cases and concluded investigations into companies including Coinbase, Uniswap Labs, OpenSea, Consensys, and Robinhood.
The SEC indicated in a statement that it has decided to essentially start over with its evaluation of how cryptocurrency businesses could best adhere to federal securities rules after filing to dismiss its lawsuit against Coinbase on Thursday.
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