Former SEC enforcement director John Reed Stark took a hardline stance against regulatory reform for cryptocurrencies during the first-ever SEC crypto roundtable. Stark, a vocal critic of the digital asset industry, argued that the Securities Act of 1933 and 1934 should remain unchanged, firmly stating that crypto should not be given special treatment under U.S. securities laws.
Speaking at the event, Stark dismissed the notion that digital assets should be classified differently from traditional securities. “The people buying crypto are not collectors. We all know that they are investors, and the mission of the SEC is to protect investors,” he asserted. Stark emphasized that crypto firms have repeatedly fought regulatory oversight but have consistently failed in court.
“The volume of case law has developed so quickly because of all these crypto firms. They went for this delay, delay, delay tactic, hiring top law firms to challenge the SEC,” he explained. “I’ve read every single one of their briefs, and they lost nearly every time.”
No Innovation in Crypto: Former SEC Regulator
Starkdismissed claims that cryptocurrencies represent groundbreaking innovation. He compared the rise of digital assets to previous technological revolutions, such as the launch of the iPhone, but concluded that crypto offers no comparable progress.
“I see no innovation here. Nothing in crypto comes close to the technological leap of the iPhone or the early internet,” he remarked. Stark argued that the industry instead thrives on legal maneuvering and delaying tactics, rather than delivering genuine technological advancement.
His comments reflect a broader skepticism toward crypto’s value proposition, as he continues to label the sector as rife with opacity and deception.
Critic Faces Industry Backlash
Stark’s anti-crypto rhetoric is nothing new. In February 2024, he likened a sponsorship deal between the Dallas Mavericks and crypto firm Voyager to a partnership with a “heroin manufacturing firm.”
His hardline stance has drawn sharp criticism from industry figures. In June 2023, billionaire investor Mark Cuban dismissed Stark’s repeated crypto bashing as “crypto derangement syndrome.”
Despite the backlash, Stark remains adamant that the SEC’s regulation-by-enforcement approach under Chairman Gary Gensler is justified, arguing that the crypto industry must comply with existing laws rather than pushing for new, lenient regulations.
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