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- SEC lawyers now need the approval of commissioners politically appointed to start official surveys.
- The change follows a dry leadership transition, with Mark Uyeda appointed interim president.
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The dry now obliges its lawyers to obtain high -level approval before officially launching an investigation, according to two familiar sources with the question that spoke in Reuters under the cover of anonymity.
The new requirement requires that the law implementing the law must obtain the authorization of the politically appointed commissioners to issue assignments, request documents and force testimonies.
Previously, staff members had the power to initiate official surveys independently, although the SEC commissioners have maintained process monitoring.
The change follows leadership transitions to the SEC, including the departure of former president Gary Gensler and Democrat Jaime Lizárraga last month. President Donald Trump appointed Mark Uyeda as an acting president, the commission currently operating with three commissioners: Uyeda, Hester Peirce and Caroline Crenshaw.
According to Tyler Warner, a former banking consultant who has become an analyst of the NFT market, the new system will prevent “thugs attacks”. SEC commissioners will be more demanding and less likely to approve surveys without solid evidence.
On the other hand, this change of procedure may include the risk that legitimate cases of fraud be missed or delayed. “Too early to call it positive or negative, (however) I look positive,” he added.
Under the previous administration, the SEC required the approval of its two law enforcement directors to officially launch probes. The sources did not specify whether the committee officially voted to revoke the delegation of the previous authority.
Application staff can continue to conduct informal surveys without approval from the commissioner, including sending requests for information.
Under the management of peopleler, the SEC increased regulatory actions against the main exchanges of cryptography, focusing on the allegations of fraud and violations of securities law. This approach aroused criticism of the cryptography sector and certain legislators, including Democrats who argued that the interpretations of people on securities were too wide and vague.
Gensler argued that the role of the dry was crucial in the protection of investors against potential fraud and scams that prevail in cryptographic space. However, his criticisms argued that this perspective led to a heavy approach which could be considered a war against crypto, which raises concerns about whether such actions were justified or excessively punitive.
Marc Fagel, a retirement lawyer specializing in the application of dry and disputes in terms of securities, said that change was one step back, making the investigations slower and ultimately benefiting those who commit fraud.
“Having been personally involved in the initial effort to delegate the official authority, I can say that it is a stupid decision that will do nothing other than to make sure that the already slow surveys take even more time. Excellent news for anyone who commits fraud, “he said.
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