Maxine Waters Raises Concerns Over SEC’s Crypto Policy Transparency
In a recent letter to the House Financial Services Committee chair French Hill, U.S. Representative Maxine Waters has called for an immediate oversight hearing with the Securities and Exchange Commission (SEC) Chairman Paul Atkins. Waters cites mounting concerns around the SEC’s crypto enforcement strategies, lack of transparency in policymaking, and investor protection practices.
Policymaking Under Scrutiny
Waters argues that the SEC, under Chairman Atkins, has been prioritizing the Administration’s interests, which undermines its independence. Specifically, she highlights the agency’s alleged politicization, raising questions about insider trading risks and politically sensitive financial decisions. “Congress designed the SEC to be independent,” Waters emphasized. She also pointed to reports suggesting questionable market volatility linked to recent policy actions.
Concerning Developments in Crypto Enforcement
The letter claims the SEC has abandoned high-profile enforcement actions against major crypto companies like Coinbase, Binance, and Justin Sun, despite credible accusations of securities law violations. According to Waters, the Chairman’s office played an active role in negotiating the conclusion of these cases, raising concerns about the agency’s ability to deter fraud effectively moving forward.
Transparency Issues
Waters further criticized the SEC for reportedly bypassing formal rulemaking procedures in favor of informal decisions at the staff level. “This approach flouts the SEC’s legal obligations,” she wrote, pointing to the exclusion of public input and lack of accountability in regulatory decisions. This opacity, she argues, prevents Congress and the public from understanding the motives behind key SEC actions.
Call for Oversight
In her letter, Waters outlined additional concerns, including weakened market surveillance, the rollback of climate-risk disclosures, and potential conflicts of interest stemming from Chairman Atkins’ private-sector background. She urged the Financial Services Committee to hold an oversight hearing promptly, emphasizing the need for greater regulatory accountability to protect investors and retirees alike.
Atkins’ Crypto-Friendly Policies
Since taking the helm from former Chair Gary Gensler, Atkins has reportedly adopted a lenient stance toward the crypto industry. His tenure has been marked by the shelving of major enforcement actions, relaxed transparency regulations for digital asset funds, and new initiatives like Project Crypto. Critics, including Waters, argue that these policies open the door to fraud and manipulation.
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