Regulatory Experts Challenge SEC's Approach to Crypto Lawsuits

Former SEC Chair Jay Clayton and former CFTC Chair Timothy Massad have expressed their disagreement with the SEC's current approach of using litigation to regulate the cryptocurrency industry. They argue that lawsuits are unlikely to address the need for adjustments to existing laws and that judges should not be tasked with addressing technical questions of market structure in the context of token classification. Clayton and Massad suggest that regulatory agencies should work together to develop basic investor and market protection standards, and they also believe that Congress mandating an approach would be preferable. They emphasize that better regulation should not be dependent on partisan lines or the ongoing debate about the utility of cryptocurrencies.