SEC's Regulation-by-Enforcement Tactics Under Scrutiny Amid Crypto Czargate

Jay Clayton, a potential candidate to become the next crypto czar at the SEC, has been involved in the regulation-by-enforcement of cryptocurrencies since his time at the agency. According to sources, Clayton began this approach in 2017, just as Bitcoin was starting to gain mainstream attention.

During his tenure at the SEC, Clayton oversaw a number of high-profile enforcement actions against cryptocurrency companies and individuals. One notable example is the case of BitConnect, which was shut down by the SEC for operating an unregistered investment contract.

Critics have accused Clayton of using regulation-by-enforcement as a way to exert control over the burgeoning crypto market without actually establishing clear regulations or guidelines. This approach has been seen as overly aggressive and has raised concerns among industry stakeholders about the lack of transparency and accountability within the agency.