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February 18, 2024

Paradigm Counsel Accuses SEC of Overreach in Crypto Market Regulation

Paradigm Counsel, a global crypto legal and regulatory consulting firm, has accused the U.S. Securities and Exchange Commission (SEC) of overreaching in its attempts to regulate the cryptocurrency market. In a blog post released on Wednesday, the firm’s co-founder and partner, Maureen Murat, said the SEC’s approach to crypto has been “aggressive” and that it has “overstepped its authority in trying to shape the cryptocurrency industry.” Murat’s post goes on to point to the SEC’s changing approach to crypto over the past few years, noting that its outlook has shifted from one of cautious optimism to outright hostility. She also noted that the SEC’s enforcement actions have caused confusion and fear, making it difficult for companies and individuals to operate within the bounds of the law. The firm further criticized the SEC’s actions as a “draconian” approach, citing the recent shut down of crypto projects like Flare Network and Polkadot as examples of overreach. The blog post went on to offer several changes that the firm believes might help improve the regulatory environment around crypto, including clarifying “the applicable regulatory regimes for the various crypto asset use cases.” As the SEC continues to hammer away at the cryptocurrency industry, Paradigm Counsel’s call for a change in the regulatory environment is likely to be echoed by others in the industry as well. It remains to be seen, however, if the SEC will take action and adjust its stance on the cryptocurrency sector.