SEC Commissioners Slam SEC's Crypto Policy After ShapeShift Settlement Unclear Standards and Opaque PoliciesThe recent settlement between the SEC and ShapeShift has drawn criticism from Commissioners Hester Peirce and Mark Uyeda, who argue that it highlights the agency's
confusing approach to cryptocurrency enforcement.
ShapeShift's $275,000 PenaltyShapeShift, a Denver-based crypto platform, agreed to pay a civil penalty of $275,000 after the SEC accused it of offering unregistered securities. However, the lack of clarity on which assets were deemed securities raises concerns.
No Harm Alleged, No Reasoning ProvidedPeirce and Uyeda point out that the SEC failed to specify which of ShapeShift's 79 assets were considered investment contracts. Moreover, they argue that the agency did not even allege any harm caused by ShapeShift's activities.
Chilling Effect on InnovationThe commissioners express their dissent, stating that such cases do little to protect investors but instead create an "untenable" environment for crypto markets. They believe that these actions stifle innovation rather than safeguarding investors.
