The regulatory landscape for digital assets in the US is complex, but the SEC is likely to continue to take a relatively strict approach. Fortune writes about this with reference to a statement by the former head of the Commission’s department for litigation in the field of cryptocurrencies, Ladan Stewart..
She has worked on SEC legal matters for over eight years, including the regulator's high-profile cases against Ripple and Coinbase.. In February, Stewart left the agency and joined the large law firm White & Case.
During a speech at a Columbia Business School conference, she expressed her opinion about the agency’s controversial approach to blockchain. According to her, the chairman of the regulator, Gary Gensler, is convinced that the current rules for securities are quite sufficient for the digital asset industry.
Stewart noted the recent denial of Coinbase's legal complaint to the SEC, through which the exchange tried to obtain a response to the petition filed in July 2022. In it, the company demanded that the agency clarify the regulation of the crypto industry.
The lawyer emphasized that this court decision will “give courage” to the Commission:
“This will likely give the SEC the comfort it needs to continue in the same spirit.”. [Gensler] has no intention of backing down from pursuing regulatory cases in the crypto space.”
She also acknowledged that one of the lawsuits brought against companies like Ripple and Coinbase is likely to reach the Supreme Court.. However, the key issue of defining a security is still unresolved, Stewart said..
In her personal opinion, a token plus “everything around the token” constitutes a security.
During the discussion, Stewart and Polygon Labs Director of Legal and Policy Rebecca Retting discussed the SEC's lawsuit against Uniswap. Retting clarified that this is not the first case against a project from the DeFi segment – in 2018, the regulator began proceedings against the founder of EtherDelta.
Let us remind you that experts in the ForkLog commentary discussed the possible consequences of the confrontation between the SEC and Uniswap. Some considered the case a “lost”, while others pointed out the risks for DeFi.