US SEC Commissioner Criticizes Decision to Dismiss "Dealer" Lawsuit

According to ChainCatcher, as reported by FinanceFeeds, SEC Commissioner Caroline A. Crenshaw strongly condemned the agency's decision on May 22 to dismiss three high-profile lawsuits against unregistered dealers.

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

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

Crenshaw noted that this is another dismissal of a crypto-related case, reflecting a concerning shift in the SEC's enforcement stance, which will ultimately undermine investor confidence and the U.S. securities law system.