U.S. Securities and Exchange Commission (SEC) Commissioner Mark Uyeda did not mince words during an October 10 Fox Business panel, calling out the SEC’s current approach to cryptocurrency regulation as a “disaster.” Uyeda criticized SEC Chair Gary Gensler for enforcing crypto policies without providing clear guidance for companies to follow, resulting in widespread confusion and legal battles across the industry.
Uyeda pointed to the fact that the SEC’s strategy of regulating through enforcement has only led to inconsistent court rulings. “We’ve done nothing to provide guidance on it,” Uyeda said, adding that the lack of clarity has allowed the courts to step in and decide crypto-related matters in conflicting ways.
Crypto.com Lawsuit Sparks Industry Frustration
Uyeda’s comments come on the heels of a lawsuit filed by Singapore-based exchange Crypto.com against the SEC. The exchange claims the regulator overstepped its authority by issuing a Wells Notice—a formal warning of enforcement action—without providing any meaningful clarification on how the existing securities laws apply to cryptocurrencies.
The ongoing tension between the SEC and crypto companies has been building for years, with many industry leaders accusing Gensler of an aggressive and unclear regulatory stance. While Gensler insists that crypto firms must comply with existing securities laws, companies argue that these rules are old and impractical for the rapidly evolving digital asset space.
Calls for Clearer Crypto Rules
According to Uyeda, the current SEC approach is not only problematic but also ineffective. He urged the agency to develop clear guidelines and definitions to help crypto firms understand which assets and practices fall under securities regulations. “We need to lay out some clear guidance and interpretations on what falls within and what falls outside the securities laws,” Uyeda emphasized.
While Uyeda refrained from speculating on Gensler’s motivations behind his stringent enforcement actions, he acknowledged that the SEC’s agenda is largely shaped by the chairman’s viewpoint.
Uyeda and fellow commissioner Hester Peirce are often in favor of more progressive crypto policies, but it is ultimately Gensler who sets the agency’s priorities. “The staff all follow his lead,” Uyeda remarked.
As pressure from the courts and industry mounts, Uyeda’s remarks highlight the growing call for regulatory clarity in the U.S. crypto space.
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