- SEC lost 15 % of its employees under the new administration, which weakened organizational control.
- Retail investors and small companies face the greatest risk of canceling regulatory restrictions.
Caroline Krincho, the remaining Democratic Commissioner of the Securities and Stock Exchange, Caroline Crinko, has released a blatant. warning About the agency’s recent approach to encryption organization. It compares it with a dangerous game of “Jenga Organizational”, which risk destabilizing the market that has been carefully built for decades.
Organizational declines raises alarm bells
On May 19, statements at the annual SEC event, Crenshaw expressed deep concern about what she described as a systematic dismantling of organizational protection. It shed light on the impact of this trend on enforcement procedures, especially in encrypted currency markets. She warned that removing these “separate but interconnected” rules threatens the stability of the entire financial system.
“Our ideal Jenga Tower consists of a set of separate but interconnected rules and laws, developed deeply and carefully over the years,” Crinko said. “How many blocs can you pull before the tower wipes the road?”
The Commissioner has highlighted many disturbing developments under the new administration, including leaving important employees, with approximately 15 % of SEC employees leave their positions. This effectively reflects the rules through employee guidelines without appropriate analysis or a general suspension, and gives up their main enforcement procedures.
Crenshaw reported that she is not satisfied with SEC’s behavior towards encryption. She explained that the last guidance is like winking and gesture, which means that we will not impose our laws strictly in specific cases. It stated that the SEC approach to not imposing regulations reduces its credibility and ignores what happened during the collapse of 2022 FTX.
Her comments are completely different from what Republican Commissioners said on the same occasion. Paul Atkins, former SEC president, stated that the encryption markets have stopped reviewing SEC for years. Moreover, Hyster Pears, who is responsible for the encryption business squad, I mentioned Most encrypted currencies today are not classified as securities.
Krinko drew their parallel with the organizational failures preceding the 2008 financial crisis, noting that “before the crisis occurred, everyone is calling for the departure of the organizers through them.” She concluded that the continued cancellation of restrictions would eventually harm small companies and retail investors at a time when it is possible to put the stage for a new financial crisis.
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