In that one of the main purposes of regulation is the protection of the public from the effects of bad actors, clearly the relative effectiveness of crypto regulations in the U.S. as administered by the S.E.C. requires scrutiny. Of equal clarity is the fact these U.S. regulations did nothing to halt or even assuage the effects from the collapse of four of the huge and major ecosystems - Terra, Voyager, Celsius and FTX.
Back in March, 2022, several crypto and blockchain concerns contacted Representative Tom Emmer (R-MN), complaining that the then strategy employed by the S.E.C. regarding reporting requirements were effectively overburdensome and were employed in a fashion that stifled innovation. Emmer's concerns voiced then in the nature of Gensler's approach being 'indiscriminate and inconsistent, have recently resurfaced due to the S.E.C.'s miss of the Terra, Voyager, Celsius and FTX debacle misses.
Just give a look at the following Emmer tweet:
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According to Cointelegraph, Emmer previously requested compliance by the S.E.C. with the Paperwork Reduction Act of 1980. [See, Sarkar, A. SEC chair’s crypto oversight strategy in question as ecosystems collapse. (Accessed November 27, 2022)]. This act imposed certain procedural requirements to be followed by any federal agency seeking to gain information from the public. Its intended purpose was to reduce the federally imposed burden of excessive paperwork on private businesses and/or citizens when complying with information requests. [See, e.g. Brooks, J. H.R.6410 — 96th Congress (1979-1980). (Accessed November 27, 2022)].
Regardless of how ever much Representatives and Senators like Emmer make noise about the S.E.C.'s intervention into the cryptocurrency industry, what remains crystal clear is the current strategy path being followed by the S.E.C. is wholly deficient and unworkable. Gensler's policy choices do nothing to provide even a modicum of protection to the investing public - contrary to that for which it is charged. It's failures with Terra, Voyager, Celsius and FTX speaks volumes to the need for the institution of new policy strategies sooner rather than later.
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