Benzinga - U.S. Securities and Exchange Commission (SEC) Commissioner Mark Uyeda on Monday stressed the importance of the SEC considering proposals to regulate cryptocurrencies.
At the fifth annual Scott Friestad Memorial Lecture in London, Uyeda underscored the necessity of providing clarity in the fast-evolving digital assets space, urging for objective standards to guide enforcement and reduce the potential for subjective interpretation.
Uyeda, reflecting on the enforcement legacy of the late SEC employee Scott Friestad, emphasized the SEC’s power should be exercised with discretion and appropriate judgment.
He highlighted the potential risks of the SEC's current enforcement-driven approach, particularly in areas where regulatory clarity is insufficient.
The SEC's reliance on enforcement actions in lieu of clear regulations, Uyeda argued, might not provide the necessary fair notice to market participants.
The Commissioner's remarks came at a pivotal time when the rapid advancement of cryptocurrency technology is outpacing current regulatory frameworks.
Uyeda pointed out the need for the SEC to propose rules or issue interpretive guidance, noting that enforcement actions were not the most effective means for setting regulatory policy.
This was particularly relevant in light of the SEC's recent enforcement cases that have sought to clarify the definition of a dealer and the regulation of cryptocurrencies and off-channel communications by broker-dealers.
Also Read: EXCLUSIVE: Crypto Payments Here To Stay, Solana Exec Says: 'US Risks Losing Talent'
Uyeda concluded his speech with a call for greater transparency and responsibility in the SEC’s application of its enforcement authority.
He underscored the need for regulators to provide clear and consistent guidance to ensure that all market participants are treated fairly under the law, adhering to the principles of "equal justice under law" as inscribed on the U.S. Supreme Court building.
Read Next: British Regulators Relegate Crypto To The Basement With Stablecoins Under Fire
Industry titans BlackRock, DTCC, OCC, State Street, Société Générale, Hedera, Citi, BMO, Northern Trust, Citibank, Amazon, S&P Global, Google, Invesco, and Moody’s will join Benzinga on Nov. 13 for Fintech Deal Day and Nov. 14 for Future of Digital Assets. Secure a spot here to join them!
Photo: Shutterstock
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.