In a recent op-ed for Fortune, Norman Reed, Interim CEO of Binance.US, highlights the SEC’s flawed approach to regulating digital assets and lays out a path forward for the Commission and industry.
The SEC was founded on principles of transparency, fairness, full disclosure, and stable regulation, taking into account the economic impact of its regulations and the well-being of investors. It is these principles that I sought to uphold during my tenure at the SEC earlier in my career.
Yet with regard to digital assets, the SEC has lost its way. This has become clear to me in my current role as Interim CEO of Binance.US and through my prior experience as General Counsel of Ripple.
The SEC is attempting a landgrab of jurisdiction over digital assets when no such jurisdiction has been authorized by Congress or the courts. Instead of working with Congress and its sister agencies to put in place a comprehensive regulatory scheme through adoption of rules after cost-benefit analysis and public comments, the SEC is bringing one-off enforcement cases to mark its territory at tremendous cost to the US economy and the SEC’s credibility. This is not the way the SEC should be addressing new, innovative financial instruments and technologies.
Fortunately, there are remedies for the SEC’s abuses, rooted directly in the Constitution, and consistent with rules of fairness and common sense. But they will take time, effort, and respect for the rule of law to bring forward.
In the meantime, my company and industry are determined to continue the fight. The benefits provided by digital assets, and the malign impact of the regulatory abuses being used to stop them, are too important not to address head on. Equally important is the American tradition of standing up to government overreach. I proudly count myself as part of that tradition.
Read Norman's full op-ed on Fortune here.