3 ms·
The SEC has put itself in a weird position. On one hand, it claims the right to regulate crypto. But then it also refuses to actually do so. Aside from a few
by LatteLazy 4y ago
The SEC has put itself in a weird position.
On one hand, it claims the right to regulate crypto. But then it also refuses to actually do so. Aside from a few easy-win, barely crypto, high profile cases like the Kim Kardashian, they carefully avoid actually regulating AND loudly proclaim they are THE regulator.
Which is it?
I don't know. And one reason I don't know if that the SEC carefully avoids any court cases where "Is the SEC actually allowed to regulate crypto?" might be ruled on. That's their choice.
Another reason is the Congress (who really should answer this question) refuses to. So I don't want to lay all the blame at the SECs feet. Let's get real here, the SEC are the first group after FTX senior leaders themselves to blame. They have said so themselves. They investigated FTX and ... stopped despite it being their job? Missed a multi billion dollar fraud along with 1000s of other issues? Come on!
- deleted 4y ago[deleted]
- iudqnolq 4y agoA regulator refusing to allow something isn't a regulator refusing to regulate. When people say the SEC refuses to regulate crypto, what they mean is the SEC refuses to treat them like banks. That is, the SEC doesn't take the attitude "the general thing you want to do is fundamentally reasonable, let's work together to write rules that enable it". Instead, the SEC regulates crypto more like the DEA regulates weed: "we think what you're doing is bad, but we're probably won't arrest you. Still, don't take this as an endorsement".
- LatteLazy 4y agoBut the regulator didn't refuse to allow anything. They said FTX was an illegal, unlicensed, security exchange. Then did nothing (except fine Kim Kardashian) despite it literally being their job, by their own admission (by their own demand really). That's the problem here.