COINOTAG News, March 22 – During a significant cryptocurrency industry roundtable organized by the U.S. Securities and Exchange Commission (SEC), John Reed Stark, the former director of the SEC’s Cyber Enforcement Office, expressed robust opposition to amending current securities regulations for digital currencies. Stark argued that the securities laws established in 1933 and 1934 should maintain their applicability to digital assets, asserting that these should remain classified as securities. He emphasized, “Individuals purchasing cryptocurrencies are primarily investors, not collectors. The SEC’s primary objective is the protection of investors,” highlighting the regulatory body’s fundamental mandate.
Stark further noted that numerous crypto firms have engaged prominent global legal firms in efforts to postpone regulatory enforcement, though they have largely faced defeat in these endeavors. He also remarked that, in contrast to prior technological breakthroughs—such as the introduction of the iPhone—there has been little tangible innovation in the realm of digital assets. A long-time critic of the cryptocurrency sector, Stark vocally supported the “enforcement-first regulation” approach championed by former SEC Chair Gary Gensler, advocating stringent adherence to existing legal frameworks over expectations for regulatory adaptation.