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The US Securities and Exchange Commission’s (SEC) Commissioner Caroline Crenshaw has criticized the agency’s recent decisions to drop multiple crypto-related cases, calling the move unprecedented and dismissive of long-standing legal principles. The Commissioner also took issue with the SEC’s Division of Corporation Finance for its stance that memecoins do not qualify as securities under federal law, arguing that this position lacks legal foundation and clarity. SEC’s retreat from crypto enforcement Over the past week, the SEC has dropped multiple lawsuits against major crypto firms, including Coinbase, Robinhood, and Gemini. This shift follows the formation of a specialized crypto task force aimed at developing future regulations. While the SEC attributes these dismissals to ongoing regulatory considerations, Crenshaw argues that enforcement should not be abandoned while new policies are still in development. She wrote: “Should the Commission enact new regulations or Congress change the law, we can progress down a different path. But until that time, we have a framework in place and that framework should be applied and enforced equally as to all participants.” The Commissioner argued the courts have consistently affirmed the SEC’s authority over crypto, citing the example of the now-dismissed Coinbase lawsuit. In that lawsuit, Crenshaw argued that the agency had already established a strong legal case, with the court agreeing “that the Commission adequately pleaded violations of the securities laws.” Meanwhile, the Commissioner questioned whether these decisions weaken the SEC’s ability to combat fraud, including Ponzi schemes, and whether digital assets are now being given preferential treatment over traditional financial instruments. She also warned that selective enforcement could erode trust in the SEC and fuel perceptions of political bias. She concluded: “Our agency’s job is to do what is right for investors, issuers, and capital markets. This is not it.” The debate over memecoins Crenshaw also criticized…

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Filed under: News - @ February 28, 2025 4:27 pm