John Reed Stark rails against ‘crypto lobbyists’ who argue that SEC enforcement actions constitute ‘regulation by enforcement’. Find out why this former SEC executive thinks it’s a bogus slogan for big cryptocurrency companies.
Status of the problem
John Reed Stark is a former head of the Web Fraud Enforcement Office at the Securities and Exchange Commission (SEC). He is also a well-known crypto-skeptic for his positions. The former executive of this commission criticizes those who say that the enforcement measures of the SEC appear as “regulation by enforcement”.
For the latter, this term is simply bogus when it comes to large crypto companies. If he thinks the expression is misplaced, it is because he maintains that it is the same way that the law of real estate values worked.
Why is SEC regulation by application “bogus” wording?
John Reed Stark argues that RPA’s refrain “regulation by application” is primarily a misguided and defensive attempt. Its purpose is only to touch the sympathy of hostile spirits regulatory and libertarian.
It is a method that only works on a case-by-case basis. Some large cryptocurrency structures could not be found in such an operation. This is why the crypto-skeptic proposes to think about creating a well-defined legislation.
Indeed, the repressive measures often used by the SEC cannot always address all the problems of the current crypto market. This is why regulation by the application rather provides a deterrent effect.
It’s important to know that Stark isn’t brushing aside the entire SEC approach. He also acknowledged that this method has sometimes proven itself in the context of crypto-assets. But he wants the Commission to find regulations that could correspond to both small and large cans of cryptocurrencies.
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