Former commissioner claims SEC’s perspective on crypto is excessively broad.

Troy Paredes, a former commissioner at the United States Securities and Exchange Commission (SEC) from 2008 to 2013, has raised concerns about the regulator’s approach to classifying digital assets as securities. Speaking at the TokenizeThis 2024 conference in Miami on May 9, Paredes suggested that SEC Chair Gary Gensler’s views on what constitutes a security under the Howey test may be too expansive. He emphasized that if an asset is not a security, it falls outside the SEC’s jurisdiction. Paredes also highlighted the need to adapt the regulatory framework for digital assets, as many firms are uncertain about compliance requirements. The SEC’s enforcement actions against crypto firms have drawn criticism, leading lawmakers to seek limitations on its authority.