Coin Edition -
- According to Peter Schiff, the SEC is seizing powers beyond its jurisdiction.
- Schiff thinks the SEC’s recent enactment was not backed by law.
- The SEC recently adopted two rules for market participants who engage in specific dealer roles.
According to Peter Schiff, American stockbroker and Chief Economist at Euro Pacific Asset Management, the U.S. Securities and Exchange Commission (SEC) is seizing powers beyond its jurisdiction. Schiff noted that the regulator unilaterally changed the definition of a “security dealer” to allow it to regulate something that is not.
How can the #SEC, a government agency, on its own change the definition of a "security dealer," so that it can regulate something that is not actually a security dealer, without any law having been passed to authorize such regulation? We are a nation of laws, not bureaucrats.— Peter Schiff (@PeterSchiff) February 6, 2024
In a recent post on X, Schiff remarked that what the SEC did was not backed by law, as none authorized such regulation. “We are a nation of laws, not bureaucrats,” he said.
Schiff commented following a February 6 press release by the SEC claiming it has adopted two rules for market participants who engage in specific dealer roles. According to reports, the new rules would widen the SEC’s net and pull many more financial operations into its jurisdiction.
According to the SEC Chairman, Gary Gensler, the newly adopted rules require that firms acting as dealers register themselves as dealers with the Commission. He believes that this step would protect investors and promote market integrity, resiliency, and transparency.
Gensler further described the new measures as “common sense,” noting that Congress did not intend for registration and regulatory requirements to apply to some dealers and not others. According to him, anyone trading in a manner consistent with de facto market making must register with the Commission as a dealer unless such a trader is exempted from the rules.
Schiff’s criticism of this move by the SEC garnered support from the crypto community who feel that the government is not getting it right. One respondent claimed that “the bureaucrats have taken control,” forcing the law to take a backseat on their agendas. He considered it a development far from the original intention of the founders of the United States democracy.
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