Bob Ras, the co-founder of Sologenic, expressed his worries about the SEC’s approach to cryptocurrency regulation in a Twitter thread, noting he thinks the agency’s has a lack of knowledge and an inconsistency in its attitude.
The SEC’s strong efforts have repercussions throughout the sector, affecting businesses like Ripple and perhaps weakening the United States’ position in the global crypto market.
Ras said that the SEC’s effort to label almost all digital assets as securities betray a fundamental ignorance of the unique characteristics of these cutting-edge innovations. He said the SEC’s regulation caused needless legal fights for businesses like Ripple.
In addition, Ras states that the SEC’s unreasonable pursuit of crypto ventures has hampered innovation and driven many businesses to go abroad for better conditions. The U.S. stands to lose influence on the international crypto scene due to this trend towards outsourcing crypto-related activities.
Ras also believes that categorizing cryptocurrencies as securities fail to recognize their unique characteristics and potential benefits, highlighting the necessity for a regulatory framework to consider these factors.
He referenced recent court developments in the Ripple case as evidence that not all crypto-assets fit the requirements to be categorized as securities, illuminating on what he sees as the SEC’s contradictory approach. Coinbase and other businesses may be affected by this disparity.
The co-founder says that the SEC should abandon its current focus on regulating via enforcement in favor of a system that encourages innovation while protecting investors’ interests.
He cautioned that failing to do so may hurt the agency’s standing and make it harder for the U.S. to compete in the international crypto market.
It is unclear how the SEC will address these issues or whether it will modify its regulatory approach to crypto-assets to consider their distinctive features and possibilities.