US Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw has expressed concern about the agency’s evolving approach to crypto regulation, arguing that it risks weakening market stability. Speaking at the SEC Speaks event on May 19th, Crenshaw accused the commission of dismantling essential safeguards and pursuing a course of “regulation by non-enforcement.” She specifically highlights the SEC’s reduced enforcement efforts in the crypto space as evidence of this shift. According to Crenshaw, the SEC has increasingly relied on informal guidance instead of public comment and analysis, leading to unchecked activities within the industry. 2022’s collapse of crypto exchange FTX serves as a stark reminder of the risks associated with lax oversight. Notably, while Crenshaw voiced concerns about the SEC’s approach, Republican commissioners such as Chair Paul Atkins viewed this as an overdue correction, urging for less regulatory burden on innovation within the crypto sector. Hester Peirce further emphasized the need to move away from enforcement-driven policy, echoing Commissioner Mark Uyeda’s call to abandon regulation by enforcement altogether. These contrasting views highlight the ongoing uncertainty in the U.S. cryptocurrency sector.