The SEC under Chair Gary Gensler is criticized for stifling innovation in the crypto sector by prioritizing aggressive enforcement actions over constructive rulemaking. This has led to uncertainty, causing American digital asset companies to shift operations abroad. Stakeholders argue for a transition to a transparent rulemaking process that involves public input, which would allow the industry to thrive under clear guidelines. Current measures have resulted in significant costs for companies and job losses, exemplified by layoffs at a major software company due to SEC battles. Polls show that voters favor clear regulatory frameworks over enforcement, believing the SEC has been too heavy-handed. The article emphasizes the need for regulatory certainty to maintain America's competitive edge in the global financial landscape, urging a shift from enforcement-based strategies to a more collaborative regulatory approach that fosters innovation and attracts investment.

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