Category: NFT News

SEC Commissioners Criticize Regulator Over ShapeShift Securities Case

Hester Pierce and Mark Uyeda have published a letter in clear opposition to the SEC’s position on crypto.

Two SEC commissioners published a scathing letter on Mar. 5 criticizing the agency for its treatment of cryptocurrency exchange ShapeShift. They also denounced the SEC’s approach toward the broader digital asset industry.

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The letter comes after a settlement between ShapeShift and the Securities and Exchange Commission. The crypto company was charged with offering unregistered securities, although it disbanded in 2021, converting itself into a DAO – embracing the DeFi ethos.

Hester M. Pierce – who has been outspokenly pro-crypto – and Mark T. Uyeda were categorical yesterday, calling the enforcement action against Shapeshift the “latest installment in the serial drama of the Commission’s poorly conceived crypto policy.”

In the letter, they make two main claims: that the SEC doesn’t specify which of the 79 crypto assets on ShapeShift’s former platform constitute investment contracts, and the agency doesn’t allege any fraud or consumer harm occurred.