SEC’s Crenshaw says agency playing ‘regulatory Jenga’ with crypto

Caroline Crenshaw, the SEC’s Democratic commissioner, warns that the agency’s inconsistent regulations on crypto, described as ‘regulatory Jenga’, threaten market stability. She cautions that weakened enforcement may lead to crises, referencing the past failures like FTX.

In contrast, Republican SEC commissioners advocate for supportive regulations that promote innovation in the crypto space. They argue that innovation should not be stifled, stressing that many crypto assets are not securities and should be regulated accordingly.