The U.S. Securities and Exchange Commission (SEC) held a meeting where legal professionals expressed concerns that the regulator has overstepped its authority regarding cryptocurrency markets.
Regulating Cryptocurrency Activities
Legal experts critically assessed decisions made during former SEC Chairman Gary Gensler’s tenure, arguing that a significant portion of cryptocurrency transactions should be excluded from regulatory oversight. They warned that current regulations are negatively impacting cryptocurrency developers and trading platforms.
Suggestions on the Howey Test
Participants emphasized the need to reassess how the SEC applies the 80-year-old Howey Test to the cryptocurrency sector. They noted that the test’s criteria often fall short, especially in areas like staking and airdrops.
SEC's Future Steps
The SEC’s Crypto Task Force is reportedly taking steps based on the feedback shared by industry representatives. Under the leadership of Hester Peirce, the SEC is seeking written proposals from sector professionals. Moreover, there have been moves to halt the Coinbase case, conclude the investigation into the NFT platform OpenSea, grant Binance a 60-day pause, and close the Uniswap investigation.
Market participants are closely monitoring the situation, particularly with expectations that the nomination of the SEC chair may take time, and upcoming regulations could take months to clarify.
