The Commissioner of Securities and Exchange Commission (SEC) Caroline Crenshaw, belonging to the Democratic Party, said that now the regulation of cryptocurrencies in the United States has become like a large jenga tower, which is falling when pulling out blocks.

Krenshow said that under the administration of Donald Trump, cryptorrhnets became as unstable as a wooden tower from a board game. If you remove the regulatory requirements for crypto companies that the SEC applies to securities for many years, then the regulatory can collapse, the commissioner warned. Now the department is ready to cancel many rules and forced measures for crypto companies without careful analysis and public comments. This means that SEC does not plan to strictly apply its own rules in certain situations, the commissioner said.

Krenshow fears that a sharp change in the agency’s attitude to cryptocurrencies can undermine its authority and reputation in the courts, since the SEC has doubted in the fundamental precedent practice applied to securities. Krenshow opposed the SEC agreement with Ripple, when the regulator agreed to reduce the fine for the company for violation of securities from $ 2 billion to $ 102.6 million. The Krenshw also mentioned the collapse of the FTX crypto -rope in 2022, calling this a clear example of a large -scale cryptocrisis.

“The risks associated with cryptocurrencies have not gone anywhere. However, the calls of regulatory bodies for serious control of crypto actures have become much quieter. The inability to evaluate and eliminate these risks doomes us to repeat heavy lessons with big losses, since cryptocurrencies are increasingly intertwining with traditional finances, ”Krenshow said.

However, the Commissioner Esther Peirce, who heads the SEC target group in cryptocurrencies, did not agree with the colleague. The Pierce said that under the administration of Joe Biden, SEC has evaded reasonable regulation of cryptocurrencies, and these errors should be corrected.

Previously, Kranshow criticized the agency’s statements that memcoirs should not be considered securities. She clarified that the promoters of memocenes are profitable at the expense of retail investors.