Don Wilson, the creator of DRW, has advocated for the creation of a new regulatory agency to replace the SEC and the CFTC
In a recent interview, Wilson stressed the need for a unified approach to financial regulation and referred to the current conflict between the SEC and the CFTC as “an ongoing counterproductive force,” according to a recent Bloomberg report.
Gary Gensler’s Ineffective Litigation Strategy
The SEC recently accused Cumberland, the cryptocurrency division of DRW Holdings, of functioning as an unregistered securities dealer, putting the company under investigation for its cryptocurrency operations. Because the complaint is part of larger enforcement efforts aimed at the industry, it raises concerns about the SEC’s regulatory strategy.
Wilson criticized some enforcement operations as being wasteful and voiced worries about the agency’s priorities. He emphasized the effects for companies negotiating hazy regulatory lines, especially during the departure of SEC Chair Gary Gensler.
Wilson remarked, “Gary has started a number of pointless lawsuits, almost as if he was just trying to get some of these things out of the way before leaving some lovely gifts for the next SEC chair to unwind.”
Will new regulators replace the CFTC and SEC?
According to the study, DRW has had regulatory issues in the past, including a protracted legal battle with the CFTC on claims of market manipulation. Wilson cited the case as proof of systemic inefficiencies in the dual-agency approach, and the firm eventually won in 2018.
Wilson said, “It’s time to start over, to really abolish the SEC and the CFTC and establish a completely new regulator.”
Despite previous proposals, combining the SEC and CFTC has gained attention due to calls for more transparent cryptocurrency regulation.
Wilson’s comments align with a period of transition for the SEC, as Gensler announced his retirement before the Trump administration took office. Former SEC commissioner Paul Atkins is reportedly a top contender to manage the organization.
