The post SEC paints ‘a distorted picture’ of USD stablecoin market — Crenshaw appeared on BitcoinEthereumNews.com.

US Securities and Exchange Commission (SEC) Commissioner and vocal crypto critic Caroline Crenshaw has accused the US regulator of downplaying risks and misrepresenting the US stablecoin market in its newly published guidelines. However, many in the crypto industry see the new SEC guidelines — which say stablecoins that meet certain criteria are now considered “non-securities” and are exempt from transaction reporting requirements — as a step in the right direction. In an April 4 statement, Crenshaw, who is widely known for opposing the spot Bitcoin ETFs, said that the SEC’s statement on stablecoins contained “legal and factual errors that paint a distorted picture of the USD-stablecoin market that drastically understates its risks.” Crenshaw disagrees, crypto industry applauds Crenshaw disputed the accuracy of the analysis made by the SEC in arriving at that decision. She pushed back on the SEC for reiterating issuer actions “that supposedly stabilize price, ensure redeemability, and otherwise reduce risk.” Source: David Sacks The SEC said that “albeit briefly, that some USD-stablecoins are available to retail purchasers only through an intermediary and not directly from the issuer.” Crenshaw argued this was misleading. She said: “It is the general rule, not the exception, that these coins are available to the retail public only through intermediaries who sell them on the secondary market, such as crypto trading platforms.” “Over 90% of USD-stablecoins in circulation are distributed in this way,” Crenshaw added. Meanwhile, many in the crypto industry expressed optimism over the clearer guidance on stablecoins. Token Metrics founder Ian Ballina said it “feels like a clear step in focusing on what really matters in the crypto space.” Crypto industry says positive step, just late Vemanti CEO Tan Tran said he wished the SEC reached this point three years ago, while Midnight Network’s head of partnerships Ian Kane said it “feels…

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Filed under: News - @ April 5, 2025 12:18 pm