In light of the rapid development of digital assets, regulatory issues are becoming critically important. Better Markets expressed sharp criticism of the SEC, pointing to its lack of transparency in cryptocurrency regulation approaches.
Core Criticism of SEC
On June 11, Better Markets sent a detailed letter to the SEC, highlighting the flaws in the Crypto Task Force's methods. The main point of contention was the use of informal staff guidance by the SEC rather than adhering to formal rulemaking procedures, undermining the principles of effective regulation.
Benefits of Formal Rulemaking
Formal notice-and-comment rulemaking is a cornerstone of the U.S. administrative process. It ensures transparency and public involvement, allowing diverse perspectives to be voiced and considered through structured steps such as publishing proposals and inviting feedback.
Examples and Consequences of Lack of Transparency
Better Markets provided a specific example regarding meme coins being labeled as 'collectibles' by SEC staff. This classification without proper analysis raises questions. A lack of transparency creates market uncertainty, reduces investor protection, and may hinder new product development.
Better Markets’ criticism emphasizes the importance of transparency in cryptocurrency regulation. For fostering public trust and healthy market development, the SEC is urged to return to formal rulemaking processes.
