The former director of the Office of Internet Enforcement at the U.S. Securities and Exchange Commission (SEC) expressed strong opposition to the notion of regulatory reform during the initial SEC crypto roundtable.
This ex-regulator argued against amending the Securities Act of 1933 and 1934 to fit digital assets, asserting that these assets still fall under the current legal framework’s definition of securities.
The inaugural SEC crypto roundtable.
“Those investing in crypto aren’t collectors; they’re investors, and the SEC’s role is to safeguard investors,” the former official pointed out. He further remarked:
“The rapid development of case law is a result of numerous crypto firms that opted for tactics based on delaying strategies, employing top-tier law firms to contest the SEC with robust legal arguments.”
“I’ve reviewed every one of these cases, and I would assert they’ve mostly lost,” he added.
He ultimately concluded that he perceived no groundbreaking innovation in digital assets or cryptocurrencies compared to previous technological shifts, such as the arrival of the iPhone.
The critic, seen on the far right, arguing against major regulatory changes.
A leading critic of cryptocurrencies
This individual has consistently been a prominent critic of cryptocurrencies and the digital asset sector, frequently calling out the industry for its lack of transparency and accountability.
In February 2024, he described a sponsorship agreement between the Dallas Mavericks — a National Basketball Association (NBA) team — and the crypto company Voyager as akin to partnering with a “heroin manufacturing firm.”
He later suggested that the SEC’s approach of regulation through enforcement under former chairman Gary Gensler was justified, insisting that cryptocurrencies should align with existing laws rather than expecting the law to adapt to the evolution of currency.
His critical stance on crypto has drawn backlash from industry leaders and investors, labeling his views as extreme. In June 2023, prominent investor Mark Cuban referred to his commentary as “crypto derangement syndrome.”