Commissioner Mark Uyeda Rips SEC’s Crypto Policies, Calls Out ‘Disaster’ and Lack of Clarity

Key Takeaways

• SEC commissioner Mark Uyeda has openly criticized the agency’s crypto-regulating approach.
• He called the SEC’s policy a “disaster” due to the lack of clear guidance.
• Gary Gensler may lose his job as SEC’s chair if Donald Trump wins the U.S. elections.

Uyeda Expresses Frustration With the SEC

Uyeda didn’t hold back in his criticism of SEC chair Gary Gensler’s handling of crypto regulation, calling out the agency’s reliance on enforcement actions without offering firms any regulatory clarity.

The SEC commissioner underscored his frustration with the agency, sharing:

“Our policies over the past several years have been disastrous for the entire industry,”

He argued that the courts have been left to interpret crypto regulations instead of clear guidelines, which has led to inconsistent rulings.

Uyeda stressed the urgent need for the SEC to clarify which digital assets fall under securities laws.

“We need to outline clear interpretations on what is within and outside the scope of securities regulations,” he added.

When asked about Gensler’s motivations, Uyeda declined to speculate.

However, he acknowledged that Gensler holds a firm “perspective” on regulating crypto.

Despite often aligning with fellow Commissioner Hester Peirce in supporting more progressive crypto policies, Uyeda noted that Gensler’s vision ultimately determines the SEC’s direction.

“Within the agency, our agenda is driven by chairman Gary Gensler, and the staff follows his lead,” Uyeda concluded.

Previous Criticism

This is not the first time Uyeda has criticized the agency.

Previously, he took issue with the agency’s lack of clarity, particularly around how crypto companies should file S-1 forms.

Uyeda proposed creating a specialized S-1 form tailored for digital assets to resolve the regulatory ambiguity plaguing crypto firms. He believes the current standard form doesn’t account for the crypto market’s distinct characteristics.

The absence of clear guidelines, Uyeda noted, has put crypto companies in a “catch-22.”

Firms blindly navigate the regulatory landscape without clear rules, risking costly mistakes.

Ripple’s legal battle with the SEC, which led to significant financial losses for the company, stands as a stark example of these high stakes.

Who Will Replace Gensler?

Gary Gensler may not remain SEC chair for long, especially if Donald Trump wins the 2024 presidential election.

Gensler, long criticized for his anti-crypto stance, could be replaced, and rumors are swirling about who might step into his shoes.

Dan Gallagher, Robinhood’s Chief Legal Officer, and former SEC commissioner has emerged as a top contender.

Backed by lawmakers like Bill Huizenga (R-Mich.), Gallagher’s regulatory experience and crypto-friendly stance have made him a favored choice.

Other potential candidates for the SEC chair position include former CFTC chairman J. Christopher Giancarlo, known as “CryptoDad,” and current SEC commissioner Hester Peirce.

However, Gallagher’s blend of regulatory experience and a crypto-friendly stance has positioned him as a strong contender for the role.