SEC Commissioner Mark Uyeda harshly criticized the agency’s approach to crypto regulation, labeling it a disaster. Uyeda claims that under SEC Chair Gary Gensler’s leadership, clear guidance has been absent, leaving the crypto industry in regulatory confusion.

Uyeda Criticizes SEC's 'Disaster' Approach to Crypto Regulation

According to SEC Commissioner Mark Uyeda, the agency has "done nothing" to clarify regulations and has taken a "disaster" approach to crypto regulation.

During a panel discussion on Fox Business on October 10th, Uyeda claimed that SEC Chair Gary Gensler has been implementing crypto policy without offering crypto companies any clear regulations or instructions.

“Our policies and our approach over the last several years have been just really a disaster for the whole industry.”

Courts Step In as SEC Fails to Provide Guidance

According to Uyeda, "the courts have achieved this, and different courts have ruled differently," because the policy has been enforced without any guidance from the government.

Crypto.com, a cryptocurrency exchange, sued the SEC the day before Uyeda made his remarks, claiming that the regulator had sent a Wells Notice, a document that warns of a possible enforcement action.

The crypto exchange based in Singapore challenged the SEC's position that the vast majority of cryptocurrencies should be regarded as securities and said the agency overstepped its bounds in the litigation.

Crypto Industry Pushes Back on SEC Policies

Many in the cryptocurrency sector have taken issue with Gensler's approach to US crypto regulation, which they see as overly stringent and lacking clarity.

Despite Gensler's repeated calls for crypto companies to follow securities laws, several have pushed back, saying the SEC's regulations aren't suitable or applicable to the industry.

Uyeda stated, "The approach we're taking appears to be the wrong one," in response to a question regarding the effectiveness of the SEC's policymaking with digital assets.

Call for Clearer Guidelines from the SEC

The speaker emphasized the importance of providing clear guidelines and interpretations regarding the boundaries of the securities legislation, Cointelegraph reports.

While Uyeda chose to remain mum when pressed for an explanation of Gensler's crypto enforcement strategy, he did acknowledge that Gensler has a "perspective" on the best way to oversee the industry.

Gensler's Leadership Controls the SEC's Agenda

Though he and fellow commissioner Hester Peirce tend to support more liberal crypto policy proposals, Uyeda claims that Gensler's views on what the agency should do prevail in the end.

Chairman Gary Gensler sets the agenda for the agency. Uyeda noted that the staff members adhere to his directives.