Back

SEC Commissioner Warns of 'Regulatory Jenga' in Crypto Approach

Democratic Commissioner Caroline Crenshaw criticizes Trump-era crypto regulatory practices, while Republican commissioners advocate for crypto industry development.

Summary

SEC Commissioner Caroline Crenshaw has criticized the agency's crypto regulatory approach under the Trump administration as 'regulatory Jenga,' warning it could threaten market stability. She specifically condemned non-enforcement methods of crypto regulation as damaging to the SEC's credibility. The debate reflects a partisan divide, with Republican commissioners supporting crypto industry development and arguing most crypto assets are not securities.

Terms & Concepts
  • Regulatory Jenga: A metaphor used to describe the precarious balance of regulatory rules, where removing certain regulations could potentially destabilize the entire regulatory structure.
  • Regulation by non-enforcement: A situation where a regulatory body chooses not to enforce existing rules, effectively creating a new regulatory environment without formally changing the rules.