Blockchain Association CEO Kristin Smith criticizes the SEC’s crypto enforcement, citing Crypto.com’s complaint and its impact on the U.S. crypto market.
On Tuesday, C.E.O. of the Blockchain Association, Kristin Smith, publicly supported Crypto.com’s lawsuit against the Securities and Exchange Commission (S.E.C.), claiming that the S.E.C.’s excessive actions threaten the U.S.U.S. cryptocurrency market.
Smith emphasized in a statement published on X that the action was vital to achieving the regulatory clarity required for the U.S.U.S. cryptocurrency business to prosper.
“Crypto.com’s leadership sends a clear message to the S.E.C.: The crypto industry is here for good,” Smith said in a statement on X.
She stressed that the lawsuit serves as a defense not only for the business but also for the users and the larger U.S.U.S. crypto community in their struggle against what they see to be regulatory overreach.
Crypto.com Sues the S.E.C. in Court
Kris Marszalek, the co-founder and C.E.O. of Crypto.com has previously said that the company would file a lawsuit against the S.E.C.
The legal complaint states that on August 22, the S.E.C. sent a Wells notice, charging Crypto.com with breaking American securities laws.
Following receipt of the notice, which he characterized as a component of the S.E.C.’s “unjust regulation by enforcement” strategy, Marszalek disclosed that Crypto.com decided to file a lawsuit.
He said that although there are hints from both sides that future administrations might view cryptocurrency legislation more positively, the current environment still needs to be improved for companies operating in the field.
Reflecting the complaints of many in the industry, Marszalek noted, “Improper S.E.C. enforcement actions have become a significant challenge for legitimate crypto businesses operating in the U.S. U.S.”
Extensive Disapproval of the S.E.C.
The cryptocurrency sector has frequently criticized the S.E.C. for its regulation-by-enforcement strategy.
In recent months, the Commission has also targeted significant businesses like Coinbase and Binance.
Many in the blockchain industry feel this assertive approach pushes innovation outside.
Nevertheless, a few prominent politicians have stated that they favor a more equitable regulatory structure.
Democratic nominee Kamala Harris highlighted the need for digital asset innovation while guaranteeing consumer protection at a Pittsburgh campaign event last month.
“We intend to establish a secure commercial atmosphere featuring uniform and lucid guidelines for driving,” Harris declared, recognizing the increasing impact of digital resources on the American economy.
The S.E.C. still needs to reply to Crypto.com’s lawsuit.
