According to SEC Mark Uyeda, the overregulation of private funds and the violation of privacy are the results of audit trials that monitor sensitive investor data.
On Tuesday, September 24, Gary Gensler, the U.S. Securities and Exchange Commission (SEC) Chairman, and five SEC commissioners are scheduled to appear before the House Financial Services Committee.
The consolidated audit trail (CAT) for cryptocurrencies was the subject of objection from crypto-friendly SEC Commissioner Mark Uyeda the day prior, as it aimed to monitor the sensitive data of investors.
SEC Mark Uyeda objects to the use of audit trails for cryptocurrency
In anticipation of Gary Gensler‘s testimony on Tuesday, SEC Commissioner Mark Uyeda stated that the House of Financial Services Committee, which is predominantly Republican, is expected to question Gensler and Democrats regarding their stringent regulatory stance on cryptocurrencies.
Uyeda also stated that the Democrat’s proposal for a consolidated audit trail (CAT) on crypto is more than overregulating private funds. In his most recent interview with Fox Business, the SEC Commissioner stated, “The Consolidated Audit Trail is a system that one would anticipate to find in a surveillance state, not the land of freedom and liberty.”
The crypto industry has been the subject of increased government surveillance and regulatory excess, which the Republicans have opposed.
In addition, they have expressed expanding apprehensions regarding the SEC’s unrestricted access to traders’ confidential personal data via the CAT. SEC Mark Uyeda asserted that this infringes upon privacy regulations.
Additionally, the SEC mandates that broker-dealers and industry participants contribute to the database’s funding by paying fees proportional to their trading volumes. In response to this, SEC Mark Uyeda stated:
“The commission needs to end its war on crypto and cease empowering special interest ESG activists to dominate C-suites and corporate boards. We should take a hard look at policies that permit a small number of proxy advisers and asset managers to effectively control public companies. The commission must empower entrepreneurs to build businesses, create jobs and innovate by focusing on capital formation.”
Mark Uyeda is opposed to the SEC’s management of cryptocurrency regulations
The US securities regulator has encountered significant opposition in regulating the $2 trillion crypto industry. SEC Commissioner Uyeda stated in an interview with Fox Business that the regulator has neglected to furnish a comprehensive inventory of crypto firms permitted to operate in the United States.
We have not provided a practical pathway to comply with our rules, nor have we provided the rules of the road for crypto, other than to declare that nearly all are securities.
Instead, we have squandered time and resources on crypto enforcement actions that offer sparse guidance at best,” he stated.
SEC Mark Uyeda also stated that the agency has been employing enforcement resources on crypto, but it has not been able to adequately safeguard investors from crypto schemes.
“It is not the American way to assume that all individuals in the market are potential scammers and fraudsters until they are proven innocent,” stated Mark Uyeda.
Senator Cynthia Lummis and Rep. Patrick McHenry have also recently petitioned the SEC to repeal the SAB 121 accounting rules for crypto custodians.
The SEC Commissioner also declared that Gary Gensler’s approach to crypto regulation is incorrect. Gensler’s potential removal from the SEC was also indicated in recent reports.
Uyeda further stated that the securities regulator should prioritize the following objectives: restoring public accountability in the rule-making process, supporting the global competitiveness of U.S. companies, and empowering Americans to make independent financial decisions.
