Better Markets, a financial watchdog, expresses dissatisfaction with the U.S. Securities and Exchange Commission's (SEC) approach to crypto regulation, noting potential impacts on public trust.
Alarm Signals from Better Markets
Better Markets has raised concerns about how the SEC manages crypto regulation. The group argues that a lack of formal processes may lead to a decline in public trust in the industry. They emphasize that informal guidance and backroom actions create uncertainty and instability.
Need to Return to Formal Processes
In traditional regulation, committees typically publish proposals, invite public comments, and make changes based on those discussions. However, SEC Commissioner Caroline Crenshaw indicated that the current process resembles a game of Jenga, destabilizing the protective structures meant for investors.
Future Under Public Pressure
There are expectations that lawmakers may pressure the SEC to establish clearer rules. Advocacy groups and developers are working together to foster a more open dialogue that could revive innovation in the U.S. and provide users with confidence in the adherence to fair regulations.
The SEC faces the challenge of needing to ensure transparency and stability in crypto regulation. To protect investors and foster growth, an open and public rulemaking process is vital.
