Blockchain Association CEO Kristin Smith Slams SEC Over Crypto.com Enforcement: “The Crypto Industry Is Here For Good”

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Julia Smith

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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Last updated:

October 9, 2024 13:06 EDT

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Blockchain Association CEO Kristin Smith publicly supported Crypto.com’s lawsuit against the U.S. Securities and Exchange Commission (SEC) on Tuesday, arguing that the regulator’s overreach threatens the crypto industry in the United States.

In a statement posted on X, Smith highlighted that the lawsuit was a critical move to push for the regulatory clarity needed for the U.S. crypto industry to thrive.

Smith’s statement on X read, “Crypto.com’s leadership sends a clear message to the SEC: The crypto industry is here for good.”

She emphasized that the lawsuit is not just a defense for the company but also for the broader U.S. crypto community and its users, as they fight against what she sees as regulatory overreach.

The lawsuit came shortly after Crypto.com’s CEO and co-founder, Kris Marszalek, announced that the company would take legal action against the SEC.

According to the official complaint, the SEC issued a Wells notice on August 22, accusing Crypto.com of violating U.S. securities law.

Marszalek revealed that Crypto.com decided to sue after receiving the notice, which he described as part of the SEC’s “unjust regulation by enforcement” campaign.

He noted that despite bipartisan indications that future administrations may take a more constructive approach to crypto regulation, the current climate remains challenging for businesses in the space.

“Improper SEC enforcement actions have become a significant challenge for legitimate crypto businesses operating in the U.S.,” Marszalek stated, reflecting the frustrations of many in the industry.

Broader Criticism of the SEC

The SEC has often faced backlash from the crypto community for its regulation-by-enforcement approach.

Major players like Binance and Coinbase have also been targeted by the Commission in recent months.

Many in the blockchain sector argue that this aggressive stance is driving innovation offshore.

Despite this, some political leaders have expressed support for a more balanced regulatory framework.

At a campaign event in Pittsburgh last month, Democratic nominee Kamala Harris emphasized the need for innovation in digital assets while also ensuring consumer protection.

“We will create a safe business environment with consistent and transparent rules of the road,” Harris remarked, acknowledging the growing influence of digital assets in the U.S. economy.

As of now, the SEC has not responded to Crypto.com’s legal action.