Experts from the non-profit organization Blockchain Association have prepared an argument that any interested party could use in court if a petition is filed to deprive Gary Gensler of his authority to make decisions related to digital assets.
“In the digital asset space, the SEC has all but abandoned its role as a rule-making body. Key questions vital to the digital asset industry remain unresolved, chief among them the question of whether a digital asset constitutes a “security.” Despite ongoing industry requests for regulatory clarity, the SEC has refused to make any rules or issue any guidance on the subject for more than four years now. Instead, the SEC decided to regulate digital assets solely through enforcement action,” the Blockchain Association said in a filing.
Blockchain Association experts say that since his appointment, SEC Chairman Gary Gensler has made it clear to the public that from his point of view, all digital assets, except for bitcoins, are securities.
As a result of the unreasonable and biased attitude of Chairman Gensler, activists say, the SEC initiated enforcement actions against the leading players in the US cryptocurrency market, claiming that digital assets traded on the platforms are unregistered securities. Consequently, they operate as unregistered national securities exchanges in violation of the Exchange Act and the Securities Act.
According to representatives of the Blockchain Association, in order to achieve the goals of regulating the digital asset industry, all Commission employees must approach the decision-making process with reason and impartiality, like a neutral arbiter. However, the dissenting opinion of SEC Chairman Gensler and his refusal to consider the facts and circumstances of each case deprives the parties to the dispute of due process rights.
“In order for the Securities and Exchange Commission to act with any semblance of legitimacy and in accordance with federal law, Chairman Gensler must recuse himself and refuse to enforce decisions regarding digital assets,” the Blockchain Association experts suggest.
Earlier, former SEC chairman Jay Clayton said that the current chairman exceeds his authority, and the actions of the regulator may be politically motivated.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
