Former SEC official John Reed Stark has criticized the misuse of “regulation by enforcement” claims in a hearing before U.S. Congress.
John Reed Stark, a former Securities and Exchange Commission (SEC) official, has accused the crypto industry of perpetuating myths to obscure its lack of transparency and accountability, dismissing claims of “regulation by enforcement” taken by the agency.
Stark’s comments were made at a U.S. House Financial Services Committee hearing on May 7. According to the SEC’s former internet enforcement chief , the crypto industry has been refusing to conform to established laws while expecting the legal framework to bend to its needs:
According to Stark, what has been called “regulation by enforcement” within the crypto industry is just the regulator performing its duties. “The rest of us simply call enforcing the law.”