The U.S. Securities and Exchange Commission (SEC) has been under fire for its inconsistent stance on cryptocurrencies. In recent weeks, the regulator has been criticized by both the crypto community and federal courts for its “regulation by enforcement” policy.
The SEC’s policy has been to treat some cryptocurrencies as securities, while others are not. This has led to confusion and uncertainty in the market, as investors and businesses have struggled to understand which cryptocurrencies are subject to regulation.
The SEC’s inconsistent approach has been highlighted in two recent lawsuits. In the Grayscale lawsuit, the SEC is accused of being “arbitrary and capricious” in its decision to classify the Grayscale Bitcoin Trust as a security. In the Ripple lawsuit, the SEC is accused of “hypocrisy” for not taking action against other cryptocurrencies that are similar to XRP.
The SEC’s critics argue that the regulator is using its enforcement power to pick winners and losers in the crypto market. They also argue that the SEC’s policy is stifling innovation in the industry.
Also read: Former SEC Chairman Says Spot Bitcoin ETF Approval Is ‘Inevitable’
Ripple Executive Chairman Chris Larsen Calls on Congress to Intervene
Ripple executive chairman Chris Larsen has called on the U.S. Congress to intervene in the SEC’s lawsuit against the company. Larsen argues that the SEC’s lawsuit is “meritless” and that it is “an attack on innovation.”
Larsen also criticized the SEC’s inconsistent approach to regulating cryptocurrencies. He said that the SEC is “picking winners and losers” in the market and that it is “stifling innovation.”
Larsen urged Congress to pass legislation that would provide clarity and consistency in the regulation of cryptocurrencies. He said that such legislation would “protect investors, promote innovation, and create jobs.”
The SEC has not yet responded to Larsen’s call for intervention. However, the lawsuit against Ripple is ongoing, and it is likely to be a major test of the SEC’s authority to regulate cryptocurrencies.
The SEC’s inconsistent stance on crypto is a major concern for the industry. The regulator needs to provide more clarity and consistency in its approach, or it risks stifling innovation and harming investor confidence.
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