COINTURK NEWSCOINTURK NEWSCOINTURK NEWS
  • Real-Time News Feed
  • Bitcoin
  • Altcoin
  • Ethereum
  • Technology News
  • Advertise
  • Contact
  • TURTURTUR
  • ESESES
Search
© 2024 COINTURK NEWS. All Rights Reserved.
Reading: SEC Members Criticize Agency’s Approach to Cryptocurrency Regulation
Share
Languages
  • TürkçeTürkçe
  • EspañolEspañol
Font ResizerAa
COINTURK NEWSCOINTURK NEWS
Font ResizerAa
Search
  • Real-Time News Feed
  • Bitcoin
  • Altcoin
  • Ethereum
  • Technology News
  • Advertise
  • Contact
  • TURTURTUR
  • ESESES
Follow US
© 2025 BLOCKCHAIN Information Technologies. >> COINTURK NEWS
Powered by LK SOFTWARE
COINTURK NEWS > Cryptocurrency Law > SEC Members Criticize Agency’s Approach to Cryptocurrency Regulation
Cryptocurrency Law

SEC Members Criticize Agency’s Approach to Cryptocurrency Regulation

In Brief

  • SEC criticized for reluctance in setting crypto rules.

  • Two SEC members say it's time to act on crypto regulation.

  • ShapeShift's case highlights SEC's unclear policies.

COINTURK NEWS
COINTURK NEWS 1 year ago
Share
SHARE

Cryptocurrencies have been a contentious area for the Securities and Exchange Commission (SEC), which has faced criticism for its reluctance to establish clear rules. The SEC’s stance has been challenged in Congress, by crypto companies, in courts, and everywhere in between. Even judges have been seen mocking the SEC on this issue. Now, two SEC members are harshly criticizing their own agency, saying “we are doing it wrong.”

Contents
SEC Members Speak Out on Crypto EnforcementThe SEC and the Crypto Conundrum

SEC Members Speak Out on Crypto Enforcement

An article recently published features SEC members Peirce and Uyeda discussing the enforcement action taken against ShapeShift. Focusing on the SEC’s persistent failure to fulfill its role in crypto regulation, these two members, who are relatively more favorable towards crypto, are saying it’s time to take action. Peirce has been vocal about this for years.

“The Commission’s enforcement action against ShapeShift is the latest manifestation of the Commission’s poorly designed crypto policy. ShapeShift AG established an online platform in August 2014 to facilitate the trading of crypto assets. ShapeShift was selling from its own inventory, thus acting as a counterparty for both buyers and sellers, and generating revenue from the spread between the cost of acquiring a crypto asset and the price at which it sold the asset. ShapeShift operated in this manner for over six years before announcing a change in its business model in January 2021. Customers would no longer be able to trade crypto assets directly on the platform, and ShapeShift would no longer act as a counterparty in any customer transaction.”

The SEC found that this company violated Section 15(a) of the Securities Exchange Act of 1934, as it should have registered as a securities dealer. The Securities Exchange Act defines a dealer as “any person engaged in the business of buying and selling securities for his own account, through a broker or otherwise.” According to the Commission, ShapeShift fits this definition because “the crypto assets offered by ShapeShift are, in the SEC’s view, investment contracts and thus securities.”

However, the Commission’s Order fails to identify which crypto assets are investment contracts and provides no explanation for its conclusion. In summary, ShapeShift is in trouble because the Commission claims, without explanation, that an undefined portion of the 79 crypto assets traded between 2014 and 2021 are investment contracts.”

This enforcement action demonstrates just how terrible the Commission’s approach to crypto regulation is. ShapeShift still doesn’t know which altcoin is considered a security today. Moreover, no crypto company operating in the US region knows this. The SEC’s attitude seems to be fighting to end the crypto business in the region. There are invisible rules to comply with, and you could be in trouble for your business even after 10 years.

We are talking about such an absurd situation that “the SEC is against the SEC.” Two members have virtually rebelled against this situation in their recently published article.

The SEC and the Crypto Conundrum

To illustrate how foolish the process is, Peirce and Uyeda shared a hypothetical dialogue. The conversation between the SEC and ShapeShift is staged, resulting in the following fictional exchange.

  • ShapeShift: Hello, I want to register as a dealer.
  • SEC: Why?
  • ShapeShift: Because I think some assets I plan to trade might be considered securities by the SEC at some point.
  • SEC: Which ones?
  • ShapeShift: I’m not sure because I really don’t understand the criteria you use to determine whether a token sale is a securities transaction and, if so, whether the token subject to the investment contract remains a security in secondary market transactions.
  • SEC: If you don’t know whether you’re conducting a securities transaction, you can’t register. And by the way, if some of the assets you’re trading are not securities, you can’t register either.
  • ShapeShift: Can you help us understand which assets are considered securities?
  • SEC: No. We suggest you read our 2017 DAO report, so everything will be clear to you. You can also look at our enforcement actions if you want.
  • ShapeShift: I’ve read it and you’re talking about enforcement actions. I have questions.
  • SEC: Hire a lawyer.
  • ShapeShift: I did, and the lawyer has even more questions.
  • SEC: Sorry, we can’t be of more help than we already are. We do not provide legal advice.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

You Might Also Like

Trump Shakes Up Washington with Determined Cryptocurrency Moves!

US States Embrace Cryptocurrency with New Legislation

Trump Energizes Crypto Market by Challenging Regulatory Stance

CFTC Drops Objection in Landmark Case, Clearing Path for Political Event Contracts

SEC Hosts Dynamic Crypto Roundtable with Influential Financial Leaders

COINTURK NEWS 6 March, 2024 - 6:30 pm 6 March, 2024 - 6:30 pm
Share This Article
Facebook Twitter
Share
Previous Article Bitcoin Price Dynamics and the Impact of the Upcoming Halving on NFTs
Next Article Telegram’s TON Blockchain Ecosystem Attracts Significant Investments
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay Connected

8.1k Like
21.1k Follow
1.1k Follow

Latest News

ARK Invest Predicts Massive Bitcoin Rise by 2030 with Compelling Insights
Bitcoin (BTC)
Coinbase Launches Round-the-Clock Bitcoin Futures in the US
Cryptocurrency News
Goldman Sachs Embraces Cryptocurrency with New Investments
Cryptocurrency News
Trump Shakes Up Washington with Determined Cryptocurrency Moves!
Cryptocurrency Law
//

COINTURK was launched in March 2014 by a group of technology enthusiasts who believe that Bitcoin will be as important as the internet in the world of the future thanks to the amazing technology underlying it.

CRYPTOCURRENCY LIVE PRICES

  • Bitcoin (BTC) Live Price
  • Ethereum (ETH) Live Price
  • Ripple (XRP) Live Price
  • Solana (SOL) Live Price
  • Dogecoin (DOGE) Live Price
  • Cardano (ADA) Live Price
  • Chainlink (LINK) Live Price

OUR PARTNERS

  • COINMARKETCAP
  • COINGECKO
  • BITCOINHABER
  • BH NEWS
  • 21MILYON
  • NEWSLINKER

OUR COMPANY

  • About Us
  • Cookie Policy
  • Advertising
  • Contact
COINTURK NEWSCOINTURK NEWS
Follow US
© 2025 BLOCKCHAIN Information Technologies. >> COINTURK NEWS
Powered by LK SOFTWARE
Welcome Back!

Sign in to your account

Lost your password?