Recent remarks by SEC Commissioner Caroline Crenshaw highlight concerns regarding the state of cryptocurrency regulation and the implications of deregulation.
Caroline Crenshaw's Warning
Caroline Crenshaw, the sole remaining Democratic Commissioner of the SEC, has voiced significant concerns regarding the agency's current approach to cryptocurrency regulation. At the SEC Speaks event on May 19, she likened this practice to a dangerous game of 'regulatory Jenga' that could undermine long-standing market safeguards.
Regulatory Concerns
Crenshaw emphasized that the systematic dismantling of regulatory measures negatively impacts enforcement actions. She cautioned that removing 'discrete but interrelated' rules threatens the stability of the entire financial system. 'How many blocks can you pull before the tower gives way?' she added.
Investor Risks
Crenshaw also noted that nearly 15% of SEC staff has left the agency, which has adversely affected regulatory effectiveness. She warned that deregulation could harm small businesses and retail investors while potentially setting the stage for a new financial crisis.
Caroline Crenshaw's statements underscore the importance of stable cryptocurrency regulation to protect small investors' interests and prevent unexpected financial crises in the future.
