A former U.S. Securities and Exchange Commission official, John Reed Stark, believes current laws work perfectly well for the crypto industry, arguing that he strongly opposes any efforts to rewrite the rules for cryptocurrencies.
Speaking at the first SEC crypto roundtable on March 21, which sparked heated debates on how to regulate cryptocurrencies, John Reed Stark, who once led the agency’s Office of Internet Enforcement, argued for the regulatory status quo to remain the same.
Stark defended the Securities Acts of 1933 and 1934, two laws that have governed financial markets for nearly a century, insisting that these old-school regulations should apply to digital assets without any tweaks or updates.
Stark argues that cryptocurrency buyers aren’t just collectors indifferent to their money; they’re investors risking their funds. The SEC’s primary responsibility, he insists, is to protect these investors, not to cater to the crypto industry.
Without holding back, the former SEC official accused crypto firms of not adhering to SEC rules, claiming that this is the reason the argument keeps resurfacing. Stark claimed these firms often hire armies of lawyers to fight the SEC in court, hoping to delay or avoid complying with regulations altogether.
He argued that these legal battles have created a fast-growing pile of court decisions about crypto, but it hasn’t worked out the way the companies hoped. In his view, the courts have mostly sided with the SEC, shutting down attempts to dodge the existing laws.
Stark’s stance didn’t come as a surprise to those who’ve followed his career. For years, he’s criticized the cryptocurrency industry, warning about its risks and pushing for tougher oversight. During his time at the SEC, he tackled online fraud, helping the agency adapt to the digital age. Now out of government, he’s become a vocal commentator on social media and a consultant for businesses navigating the digital finance industry.
At the roundtable, Stark portrayed the crypto industry as one that wants special treatment it doesn’t deserve. He argued that cryptocurrencies aren’t so different from stocks or bonds, even if they run on the blockchain.
To him, the hype around digital assets doesn’t justify throwing out a system that’s protected investors for decades. He urged the SEC to follow their principles and keep enforcing the laws as they are.
The SEC’s crypto roundtable comes at a time when digital currencies are grabbing headlines and drawing in millions of everyday investors. Bitcoin’s price has soared past $100,000 recently, and new crypto projects pop up almost daily.
Since assuming office as the 47th POTUS, President Trump has made and effected sweeping updates and changes to the crypto regulatory landscape. As a result, the Securities and Exchange Commission has halted several actions it has brought against crypto firms, the latest being Ripple, as confirmed by CEO Brad Garlinghouse.
