SEC Commissioner Slams Coinbase Decision: Crypto Industry's Interests Trump Law

SEC Commissioner Caroline Crenshaw has publicly criticized the Commission's decision to drop its lawsuit against Coinbase, accusing it of willfully disregarding the law to promote the crypto industry's interests. In a scathing letter posted on the SEC's website, Crenshaw argued that the move undermines the credibility of the Division of Enforcement and creates the appearance that the agency is politicized and lacks trustworthiness.

Crenshaw, whose term ends in June, suggested that the SEC's pro-crypto shift may be driven by election cycles or favoritism towards those with significant resources. She also questioned the industry's stated desire for regulatory clarity, implying that it may not be sincere.

The SEC's decision to dismiss the Coinbase lawsuit comes amidst a spree of crypto enforcement actions, with some of Gensler's old targets expressing gratitude for the policy shift. However, others have been openly vengeful and want to act decisively to prevent future enforcement.

Crenshaw's criticism highlights the growing divide within the SEC regarding its approach to the crypto industry. As the Commission continues to grapple with the regulation of digital assets, her outspoken stance serves as a reminder of the ongoing debate and uncertainty surrounding the future of crypto regulation in the United States.