Gurbir Grewal, the US Securities and Exchange Commission's (SEC) top enforcement official, criticized the cryptocurrency industry for its “significant non-compliance” and “creative attempts” to evade regulation.
Grewal's comments were made during the two-day “SEC Speaks” event hosted by the Practicing Law Institute.
Grewal condemned the crypto industry for its attempts to evade the SEC's jurisdiction, which some argue the SEC is “making up as it goes along” and “regulating by enforcement.” He also addressed the criticisms leveled at the institution over the years and stated that his views do not necessarily reflect those of the institution.
SEC Chairman Gary Gensler argues that most cryptocurrencies are securities and should be regulated similar to other investments. Some companies, such as Coinbase, have gone to court to seek clarity on how securities laws apply to cryptocurrencies.
Grewal noted that the test to determine whether cryptocurrencies are a security is the Howey Test, a 1946 U.S. Supreme Court case frequently cited by the SEC. “This is not the principal components test or the Beanie Babies test or some other tests that cryptocurrency industry insiders might want to create for themselves,” said Grewal, who also rejected other tests proposed by the industry.
The SEC has been accused of picking winners and losers, stifling innovation, and steering crypto businesses to more advantageous foreign countries.
The SEC has been accused of picking winners and losers, stifling innovation, and steering crypto businesses to more advantageous foreign countries. Grewal, kripto endüstrisini “‘biz herkes için geçerli olmayan farklı bir dizi kural istiyoruz’ demenin gizli bir yolu olan on yıllık sözlü cambazlık” olarak tanımladığı şey için eleştirdi.
*This is not investment advice.