SEC's New Crypto Rules Spark Fears of Investor Exploitation

The Securities and Exchange Commission (SEC) has proposed new rules that would exempt crypto asset offerings from federal securities laws, according to Benjamin Schiffrin, Director of Securities Policy for Better Markets. This move has been met with criticism from Schiffrin, who claims the SEC is no longer an investor protection agency but a 'Crypto Promotion Commission.'

The proposed rules, known as 'Regulation Crypto Assets,' would allow crypto companies to sell assets to the public without registering them under federal securities laws. This exemption is seen as a departure from the SEC's historical approach of requiring registration for other unique asset classes, such as asset-backed securities and real estate investment trusts.

Schiffrin argues that this proposal would leave investors vulnerable to scams and exploitation, citing a recent survey where over 70% of Americans believe crypto benefits insiders, criminals, and scammers. He also points out that the SEC has won almost 100% of its crypto cases in court when it enforced existing rules.