The US Securities and Exchange Commission's (SEC) Commissioner Caroline Crenshaw has criticized the agency's recent decision to drop several crypto-related cases. She believes that this move is unprecedented and dismissive of long-standing legal principles. Crenshaw also took issue with the SEC's stance that memecoins do not qualify as securities under federal law, arguing that this position lacks legal foundation and clarity. Over the past week, the SEC dropped lawsuits against major crypto firms, including Coinbase, Robinhood, and Gemini, amid the formation of a specialized crypto task force for future regulations. Crenshaw argues that enforcement should not be abandoned while new policies are still in development and expresses concerns that selective enforcement weakens the SEC's ability to combat fraud and may erode trust in the agency. She also criticizes the SEC's recent guidance on memecoins, questioning the lack of definition and arguing that labeling a token as a memecoin should not exempt it from securities laws. Overall, Crenshaw believes that the SEC's current approach introduces ambiguity and weakens enforcement efforts, allowing bad actors to exploit regulatory gaps.



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