{"id":78345,"date":"2026-09-18T13:05:25","date_gmt":"2026-09-18T13:05:25","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ex-sec-chief-claims-agency-overreaches-authority-on-crypto-rules\/"},"modified":"2026-09-18T13:05:25","modified_gmt":"2026-09-18T13:05:25","slug":"ex-sec-chief-claims-agency-overreaches-authority-on-crypto-rules","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ex-sec-chief-claims-agency-overreaches-authority-on-crypto-rules\/","title":{"rendered":"Ex-SEC Chief Claims Agency Overreaches Authority on Crypto Rules"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">SEC Chair Atkins proposed a crypto deregulation plan to foster U.S. innovation after the CLARITY Act failed.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Ex-SEC official John Reed Stark slammed the rule as illegal, arguing it lets issuers wrongly self-certify.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Stark warned the proposal usurps Congress, threatening a major legal challenge against the SEC.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Reed Stark Claims SEC Usurps Congressional Authority On Crypto Rulemaking<\/h2>\n<p>After the <a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/clarity-act-made-126-concessions-and-still-couldnt-get-60-votes\/\">CLARITY Act failed to pass cloture on Tuesday<\/a> over several issues, the Securities and Exchange Commission (SEC) has <a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/sec-and-cftc-take-the-wheel-after-clarity-vote-failure\/\">vowed to step in<\/a> to provide much-needed clarity to the industry.<\/p>\n<p>In August, SEC Chair Paul Atkins unveiled a package of exemptions known as <a href=\"https:\/\/www.sec.gov\/newsroom\/speeches-statements\/atkins-statement-regulation-crypto-assets-081826#_edn1\" target=\"_blank\" rel=\"noopener noreferrer\">Regulation Crypto Assets<\/a>, designed to, in his own words, <strong>\u201cfacilitate capital formation and allow crypto asset innovation to flourish in the United States in the years ahead.\u201d<\/strong><\/p>\n<p>Nonetheless, this deregulation plan has detractors. John Reed Stark, founder and former chief of the SEC\u2019s Office of Internet Enforcement, with over 18 years in the agency, believes Atkins\u2019 push to deregulate the crypto industry and open the ecosystem to mainstream investors is illegal and usurps Congressional authority.<\/p>\n<p>Reed Stark stressed that Atkins\u2019 plan <strong>\u201cexceeds the SEC\u2019s exemptive authority under Securities Act Section 28 and Exchange Act Section 36,\u201d<\/strong> and that it disregards the agency\u2019s own decades of litigated positions, contradicting its previous actions.<\/p>\n<p>In a brief <a href=\"https:\/\/x.com\/JohnReedStark\/status\/2100168085411873146?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">posted on social media channels<\/a>, Reed Stark blasts the proposed SEC safe harbor provision for investment contracts, highlighting its alleged defects and illegalities. The rule would let issuers self-certify their instruments as non-securities, subdelegating the definition of an instrument to their promoters.<\/p>\n<p>To Stark, the SEC has no business deciding Congress matters, especially after the CLARITY Act failed to pass a cloture vote, invoking the major questions doctrine over this subject.<\/p>\n<p><strong>\u201cThe CLARITY Act\u2019s tortured journey is not, as Atkins will undoubtedly claim, irrelevant legislative noise. It is the single most probative fact in the case: living, docketed, roll-call-voted proof that the crypto market-structure question belongs to Congress. The rule is an attempt to disappear and moot the U.S. Senate,\u201d<\/strong> he assessed.<\/p>\n<p>Reed Stark told Atkins to <strong>\u201cget ready for a fight,\u201d<\/strong> stating that the Regulation Crypto Assets proposal would not survive federal scrutiny, prompting a possible legal fight over this new stance on crypto assets.<\/p>\n<p><strong>\u201cStay tuned indeed, Chairman Atkins. And fail not at your peril, Chief Ponzi Officer,\u201d<\/strong> <a href=\"https:\/\/x.com\/JohnReedStark\/status\/2100550767249698816?s=20\" target=\"_blank\" rel=\"noopener noreferrer\">Reed Stark concluded.<\/a><\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/ex-sec-chief-claims-agency-overreaches-authority-on-crypto-rules\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways SEC Chair Atkins proposed a crypto deregulation plan to foster U.S. innovation after the CLARITY Act failed. Ex-SEC official John Reed Stark slammed the rule as illegal, arguing it lets issuers wrongly self-certify. Stark warned the proposal usurps Congress, threatening a major legal challenge against the [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":78346,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78345"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=78345"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78345\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/78346"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=78345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=78345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=78345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}