The acting US Securities and Exchange Commission (SEC) Chairman, Mark T. Uyeda, has called for rulemaking to clarify crypto regulations rather than relying on enforcement actions. In a recent roundtable discussion, he emphasized the need for formal processes to bring clarity to the digital asset space.
Uyeda argued that the SEC should use notice-and-comment rulemaking or releases to explain its thought process, rather than taking enforcement action. He cited examples of inconsistent court interpretations and suggested that these inconsistencies complicate the classification of crypto assets.
The acting chair noted that some federal circuits have different standards for classifying investment contracts in crypto assets, with disagreements over issues such as pooling of investor funds and pro rata profit distribution. However, he clarified that differences in opinions among courts are not unusual and that the SEC can provide guidance to fill legal gaps.
Uyeda pointed to past instances where the SEC offered guidance on unclear issues, such as whisky warehouse receipts and condominium sales. He suggested that a similar approach should be taken for digital assets, bringing clarity and consistency to the crypto landscape.
Source: https://news.bitcoin.com/acting-sec-chair-rejects-enforcement-demands-real-crypto-rules