A larger discussion about the SEC's enforcement strategy has been triggered by the continuing legal dispute between Ripple Labs and the US Securities and Exchange Commission (SEC) regarding the selling of the XRP cryptocurrency.
A well-known attorney and the head of policy at Ripple, Susan Friedman, has suggested that the SEC's emphasis on enforcement over transparency is harming markets and impeding capital formation in the United States as the case develops.
The US Securities and Exchange Commission's goal is to safeguard investors, uphold fair, orderly, and efficient markets, and promote capital formation, Susan Friedman has pointed out.
She did point out that since examinations and enforcement account for more than 50% of the SEC personnel, the current distribution of SEC resources does not support these goals. Friedman contends that this discrepancy is detrimental and contradicts the SEC's obligation to encourage healthy market expansion.
This is purportedly in response to Gary Gensler's recent claims that there are restrictions for the crypto industry, but that they are still "rife with noncompliance."
The chairman of the Securities and Exchange Commission (SEC), in his testimony before the House Appropriations Subcommittee on Financial Services and General Government on Wednesday, restated his stance that the vast majority of coins and tokens in the cryptocurrency field are securities.
These uncertainties, in the opinion of experts, highlight the possible difficulties the industry may have while negotiating the regulatory environment.
