U.S. SEC Commissioner Criticizes Decision to Dismiss "Dealer" Lawsuit

ChainCatcher news, according to FinanceFeeds, SEC Commissioner Caroline A. Crenshaw strongly condemned the agency's withdrawal of three high-profile lawsuits against unregistered dealers on May 22.

In a public statement, Crenshaw stated that the defendants' actions fully align with the statutory definition of "dealer," and that federal courts have ruled that the SEC's lawsuits have sufficient legal basis.

She warned that abandoning the enforcement of dealer registration rules would lead to a surge of "toxic financing," harming the interests of investors and issuers.

Crenshaw pointed out that this is yet another dismissal following crypto-related cases involving Coinbase, Consensys, and Kraken, reflecting a concerning shift in the SEC's enforcement stance that will ultimately undermine investor confidence and the U.S. securities law system.