SEC Commissioner slams decision to drop "dealer" lawsuit

Mars Finance 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. Crenshaw stated in a public statement that the defendants' actions fully comply with the statutory definition of "dealers" 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 proliferation of "toxic financing" that would harm investors' and issuers' interests. Crenshaw pointed out that this is another withdrawal of lawsuits following cases involving Coinbase, ConsenSys, and Kraken, reflecting a worrying shift in the SEC's law enforcement stance that will ultimately undermine investor confidence and the U.S. securities law system.