SEC is no longer a 'cop on the beat‘ on crypto, says US lawmaker

Representative Stephen Lynch voiced concerns about the direction of the SEC under Donald Trump, citing dropped investigations and enforcement actions on crypto companies.

Opposing viewpoints on how regulators keep pace with technology were on view as a US House panel on Thursday examined different approaches to digital asset regulation at the Securities and Exchange Commission (SEC).

One viewpoint evident at the hearing of the House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, was voiced by ranking member and Massachusetts Representative Stephen Lynch who said he “wholly embraced” the idea that innovative technology could be used for “tremendous good,” but expressed concern with “recent regulatory developments” in the United States. 

“Under the Trump administration [...] the SEC has dismantled several of the teams that are responsible for managing the incidents of scams and frauds, the White House has dismantled FinHub, which is the dedicated office that built the agency’s technical expertise on digital assets and fintech,” said Lynch, adding:

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