WASHINGTON, D.C.—Benjamin Schiffrin, Director of Securities Policy, issued the following statement in connection with Better Markets’ new Fact Sheet, “Having Won Almost 100% of Its Cases Against the Crypto Industry, the SEC Baselessly Surrenders”:
“The SEC has won almost 100% of its cases against the crypto industry because in most cases the crypto industry is knowingly and intentionally breaking the securities laws. In light of its virtually unanimous win record, the SEC’s recent actions are shocking and unprecedented. It has dismissed, agreed to dismiss, or paused cases that it had brought to force crypto firms to comply with the law. In none of these cases did a court find that the SEC’s case lacked merit. Nonetheless, the SEC has decided not to pursue them.
“The SEC’s actions follow the crypto industry’s $200+ million campaign during the 2024 election cycle to buy enough political influence to get the cases dropped. Remarkably, that money wasn’t spent on campaign ads singing the praises of crypto or crypto-supporting candidates. In fact, those ads did not mention crypto, presumably because the industry knows that the American people are overwhelmingly against crypto. Yet the new administration, after receiving campaign contributions from crypto, has vowed to unleash the industry. And the SEC has been in the lead in surrendering to the industry.
“In addition to dropping enforcement actions and investigations, the SEC has taken other actions to benefit the crypto industry. It has rescinded accounting guidance designed to address the unique risks crypto poses, dismantled the crypto unit in its Division of Enforcement, and issued guidance declaring that most meme coins are not securities.
“William O. Douglas, the SEC’s third chair and a future Supreme Court justice, declared that the SEC would serve as ‘the investor’s advocate.’ Unfortunately, it appears that is no longer the case. Instead, the SEC appears to have a new role: the crypto industry’s advocate.”
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
