- The congressman Brad Sherman openly backed the SEC’s enforcement actions against the crypto industry, saying “crypto is a garden of snakes”
- The ongoing SEC crypto enforcement actions have also gained the support of United States senators.
The US Securities and Exchange Commission (SEC) has championed enforcement actions against the crypto industry in recent years, marked by regulatory attacks against service providers and providers in the pursuit of oversight.
The intensifying “regulation by enforcement” approach has raised questions regarding the commission’s actions, which have been criticized as hostile and aggressive.
Despite this scrutiny, some US policymakers strongly support the commission’s actions.
Sec Crypto Enforcement Actions
In a Tuesday, May 7 hearing over the Securities and Exchange Commission’s recent regulatory actions, Representative Brad Sherman asserted that the ongoing focus of the regulatory body on the crypto industry is not a coincidence but necessary to ensure orderliness within the financial sector.
As we honor those that fight crime in the streets, today's @FSCDems Capital Markets Subcommittee focused on the @SECGov's fight against crime in the suites – including enforcement actions for the #Crypto industry.
Watch my full remarks ⬇️ pic.twitter.com/DANIeszBN7
— Congressman Brad Sherman (@BradSherman) May 7, 2024
Central to Sherman’s support was the indictment of the fallen crypto mogul Sam Bankman-Fried (SBF) for an $8 billion investor fraud, which, according to him, reflects the problematic nature of the broader industry.
See Also: Jim Cramer’s Market Statement Ignites Buzz in Crypto Community, Here’s Why
While the commission has often been accused of failing to establish clear regulations for crypto, Rep Sherman stated that the industry has fought tooth and nail against the commission’s regulations in an effort to give itself a patina of regulations.
“The crypto industry will tell us that Sam Bankman-Fried a single snake in a garden of crypto Eden, when in fact, Crypto is a garden of snakes,” stated the congressman.
Spotlighting the commission’s battles against crypto exchanges, such as Binance, Coinbase, and Kraken, Sherman reiterated his position as one of the early advocates for specific legal actions against crypto exchanges, asserting the need to “go after the illegal securities exchanges.”
The viability of the crypto asset class as an investment option was also a focal point of discussion.
He emphasized that Americans should invest more in stock markets rather than what he described as ephemeral efforts to create new currencies that rival the US dollar and other national currencies.
Sherman’s stance aligns with Chair Gary Gensler’s recent defense of the SEC’s actions against the crypto industry.
Gensler Refutes Claims Of SEC’s Crypto Focus
Addressing the SEC’s oversight of the crypto market in a CNBC interview on Tuesday, the SEC chair refused claims that the commission has turned most of its attention to the industry while neglecting the actual financial markets for which it is designated.
Gensler stresses that the SEC’s recent enforcement actions are in line with the law, fueled by its responsibility to ensure that investors get the required disclosures on investment options.
“Much of this field is non-compliant with the protections of our securities laws,” he stated.
The SEC chair further emphasized the industry’s challenge of scams and fraud, asserting that they threaten investors and mandate stringent complaint actions to ensure protection.
Sherman’s likening of the crypto industry to a garden of snakes highlights the persistent skepticism among some policymakers, indicating the challenges that threaten regulatory clarity.
See Also: Elon Musk’s Tesla Adds Dogecoin Payments On Its Website, Is X Next?
Additionally, his open support for the SEC’s crypto actions contrasts the scrutiny from pro-industry advocates and may further encourage the commission’s anti-crypto stance.
Other News
U.S. lawmakers have suggested the removal of Gary Gensler as SEC Chair.
The latest target in the SEC’s streak of enforcement actions is retail crypto trading platform Robinhood.
In February 2024, five U.S. senators criticized the SEC, under Gensler’s leadership, as unethical and unprofessional and called for a reassessment of its actions.
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