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Norman Reed, Interim CEO of Binance.US, has launched a scathing critique of the Securities and Exchange Commission's (SEC) strategy for regulating digital assets, characterizing it as fundamentally flawed and harmful to the US economy. Reed, a former SEC employee, has articulated his concerns in a strongly worded op-ed for Fortune, pointing out the agency's departure from core principles such as transparency, fairness, and stable regulation in its management of the rapidly evolving digital asset landscape.
SEC's Approach: A Regulatory Overreach According to Binance.US CEO
In his editorial, Reed emphasizes the crucial role of regulatory frameworks in maintaining a healthy financial ecosystem and protecting the interests of investors. Drawing on his background as a former SEC employee, Reed expresses disappointment over what he perceives as a deviation from the agency's founding principles.
"The SEC was founded on principles of transparency, fairness, full disclosure, and stable regulation," Reed notes in his op-ed. "Yet with regard to digital assets, the SEC has lost its way."
Reed further contends that the SEC's current approach involves a jurisdictional overreach regarding digital assets, lacking proper authorization from Congress or the courts. He accuses the SEC of opting for one-off enforcement cases instead of engaging in collaborative efforts with legislators and other regulatory bodies to establish a comprehensive and well-informed regulatory framework.
The Interim CEO's critique comes at a time when internal dissent within the SEC has also been highlighted, with Commissioner Elad Roisman expressing concern over the lack of clarity surrounding the application of securities laws to digital assets. Reed underscores these internal disagreements as indicative of the broader challenges and uncertainties within the regulatory landscape.
“With regard to digital assets, the SEC has lost its way.”
— Binance.US 🇺🇸 (@BinanceUS) January 19, 2024
In today’s @FortuneMagazine op-ed, Norman Reed, Interim CEO of @BinanceUS, highlights the SEC’s flawed approach to regulating digital assets and shares a path forward for the Commission and industry.
In the meantime, we…
Executive Branch's Silence on Digital Asset Definition Amplifies Uncertainty
Members of the House Financial Services Committee have joined the ranks of critics, echoing concerns that the SEC's current approach leaves the digital asset industry "without clear rules of the road." Reed points out that the executive branch has yet to provide a clear definition for digital assets, while other regulators characterize them differently from securities.
Reed concludes his op-ed by advocating for three remedies for the SEC: providing fair notice to the industry, abandoning arbitrary efforts against crypto, and collaborating with Congress to design a comprehensive and effective regulatory framework for the digital asset industry.