- Mark Fagel says the SEC tends to reply poorly to new, quickly altering areas.
- The previous secretary hopes that Congress will step in to manage the cryptocurrency trade.
- Fagel believes the SEC is there to go after unregistered organizations.
Mark Fagel, a former SEC regional director, has criticized the SEC for repeatedly falling quick in a quickly evolving space, blaming the fee's inflexible paperwork and gradual processes for permitting the issue to tug on.
In a latest interview with Pondering Crypto's Tony Edwards, Fagel detailed the complexities dealing with the SEC and the company's efforts to take care of a wholesome monetary ecosystem within the U.S. Fagel praised lots of the SEC's efforts, noting that its enforcement actions are legally sound.
However the former regional director acknowledged that the standoff between the SEC and cryptocurrency exchanges has been tough. He expects Congress to step in to manage that sector of the economic system. If not, the SEC might proceed to step in and take enforcement motion. Whereas he disagrees with a number of the SEC's ways, Fagel believes the SEC's enforcement actions are sound.
As for the SEC going after unregistered firms with no historical past of violations, Fagel defined that registration is a requirement that facilitates disclosure. Ready till a violation happens earlier than taking motion can be a reactive strategy that would go away the SEC continually taking part in catch-up, he argued.
The previous commissioner famous that the fraudsters' actions are an indicator that the SEC ought to act aggressively. He mentioned fraudsters don't maintain onto stolen funds for lengthy, so when the SEC can solely monitor them after the crimes have been dedicated, it usually finally ends up with nothing to get well.
He additional defined that the SEC's cautious tempo will lead to a prolonged investigative course of, so the company would favor to give attention to stopping crimes from taking place quite than going after fraudsters who could have already spent the stolen funds.
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