Caroline Crenshaw, SEC Commissioner from the Democratic Party, compared cryptocurrency regulation in the U.S. under the Trump administration to a Jenga tower that collapses when key blocks are pulled out. In her opinion, easing regulatory requirements for crypto companies that were previously applied to securities threatens the stability of the financial system. Crenshaw warns that such changes could lead to a collapse of regulation, especially amid the growth of the crypto market. She mentioned the FTX collapse in 2022, emphasizing the risks of an unregulated sector.
Crenshaw criticized the SEC's decision not to classify certain stablecoins and meme coins as securities, arguing that this undermines the agency's jurisdiction. Her position sparked discussions: Commissioner Hester Peirce and representatives of the crypto industry, including Coinbase CEO Brian Armstrong, call her approach overly harsh, stifling innovation.
Despite criticism, Crenshaw insists on protecting investors and market transparency. Follow the news on crypto regulation and subscribe to #MiningUpdates
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