{"id":27833,"date":"2025-05-21T10:31:52","date_gmt":"2025-05-21T10:31:52","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=27833"},"modified":"2025-05-21T10:31:52","modified_gmt":"2025-05-21T10:31:52","slug":"sec-playing-regulatory-jenga-commissioner-crenshaw-slams-agencys-new-crypto-approach","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=27833","title":{"rendered":"SEC \u2018Playing Regulatory Jenga\u2019: Commissioner Crenshaw Slams Agency\u2019s New Crypto Approach"},"content":{"rendered":"
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The sole Democratic Commissioner at the US Securities and Exchange Commission (SEC), Caroline Crenshaw, recently criticized the agency\u2019s new regulatory approach toward cryptocurrencies, warning that the watchdog is playing a \u201cdangerous\u201d game.<\/p>\n

Crypto Regulation\u2019s Jenga Tower<\/h2>\n

In her remarks<\/a> at the SEC Speak event, SEC Commissioner Caroline Crenshaw said that the regulatory agency is undermining its decades of work while staring at \u201calarming market volatility, emerging risks, and calls for deregulatory action in all corners of our markets.\u201d<\/p>\n

The Democratic Commissioner affirmed on Monday that the watchdog is \u201cplaying a game of regulatory Jenga,\u201d with their \u201cproverbial Jenga Tower,\u201d comprised of \u201ca set of discrete but interrelated rules and laws, deeply and carefully developed over the years.\u201d<\/p>\n

Criticizing the SEC\u2019s new regulatory approach, Crenshaw questioned<\/a> how many blocks the Commission can pull \u201cbefore the tower gives away,\u201d arguing that it has already shaken the tower by pulling institutional integrity, failing to enforce laws, and ignoring potential market risks.<\/p>\n

She affirmed that the \u201cmost devastating\u201d Jenga piece to go was the SEC staff, which has declined by nearly 15% in the past four months. Additionally, Crenshaw blasted the agency\u2019s recent use of guidance on topics like memecoins and crypto mining \u201cto walk away from rules and upend longstanding practice.\u201d<\/p>\n

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In particular, our statements on these crypto-related issues are the equivalent of a wink and nod intended to convey that we do not plan to rigorously apply our laws in certain, specific situations. For example, the statements pull at the threads of our most foundational case law while meekly suggesting \u2013 in footnotes \u2013 that we still might do the required facts and circumstances analysis in each case.<\/p>\n<\/blockquote>\n

The Commissioner stated that crypto presents \u201ccertain novel risks,\u201d which could lead the agency to \u201crepeat hard lessons with high stakes\u201d if they fail to address them as crypto becomes increasingly entangled with traditional finance<\/a>.<\/p>\n

SEC\u2019s New Regulatory Approach<\/h2>\n

One of Crenshaw\u2019s key remarks also addressed the SEC\u2019s long-criticized \u201cregulation by enforcement\u201d approach, slamming the new \u201cregulation by non-enforcement\u201d of the Trump administration.<\/p>\n

According to the Democratic Commissioner, the term was a \u201ctotal misnomer\u201d as the agency staff didn\u2019t try to create new laws with the cases. Instead, these actions \u201capplied decades-old precedent to address violations of existing securities laws.\u201d<\/p>\n

She alleged that the SEC has abandoned its duty to enforce existing law with the shutdown<\/a> of its enforcement program \u201cin anticipation of creating new crypto-friendly rules.\u201d<\/p>\n

On the contrary, the SEC\u2019s new chairman, Paul Atkins, criticized<\/a> the agency\u2019s previous \u201chead-in-the-sand\u201d regulatory approach, affirming that it stalled innovation and created an uncertain state for the crypto industry.<\/p>\n

At the SEC Speak event, Atkins shared his vision for a more welcoming and constructive regulatory environment, contrary to the previous administration\u2019s aggressive \u201cshoot-first-and-ask-questions-later\u201d strategy.<\/p>\n

He detailed that this approach led to a communication breach and a lack of trust between the SEC and the crypto industry, which made working together on complex legal matters difficult.<\/p>\n

Ultimately, Atkins directed the Division of Corporation Finance to address these issues by maintaining transparent interactions with the public. He also announced that the SEC\u2019s policy Division has started drafting rule proposals related to crypto.<\/p>\n

\u201cAs I begin my tenure as Chairman, I can tell you that we are getting back to our roots of promoting, rather than stifling, innovation. The markets innovate, and the SEC should not be in the business of telling them to stand still. It\u00a0is<\/em><\/strong>\u00a0a new day at the SEC, and I look forward to what we are going to be able to accomplish for investors and the markets,\u201d he concluded.<\/p>\n

\"Crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The sole Democratic Commissioner at the US Securities and Exchange Commission (SEC), Caroline Crenshaw, recently criticized the agency\u2019s new regulatory approach toward cryptocurrencies, warning that the watchdog is playing a \u201cdangerous\u201d game. Crypto Regulation\u2019s Jenga Tower In her remarks at the SEC Speak event, SEC Commissioner Caroline Crenshaw said that the regulatory agency is undermining […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-27833","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/27833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27833"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/27833\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}