A lawyer from a16z Crypto, a major venture capital firm, criticized the US Securities and Exchange Commission (SEC) and its handling of crypto regulation. 

Miles Jennings, the General Counsel, went on to share the allegations targeting  the SEC’s crypto enforcement division, calling its lawyers “incompetent” and accusing them of “abusing power.”

On Friday, we filed a comment letter to the SEC’s safeguarding custody rule. We did not mince words.

The proposal is another misguided and transparent attempt to wage war on crypto, and if passed it will result in investor harm, market inefficiencies and poor capital formation. pic.twitter.com/Z7S01Z8SOw

— miles jennings (@milesjennings) May 8, 2023

The SEC’s lawsuit against the blockchain company DebtBox is the source of this criticism. Despite losing the case, the SEC accused DebtBox of fraud. As per the judge’s ruling, the SEC had made “misleading statements” and “abused power.”

Jennings thinks that the SEC’s proceedings against DebtBox are merely a sign of a bigger issue. According to him, legal practices that employ former SEC crypto enforcement attorneys will no longer be accepted by A16z.

The response to what Jennings said is yet to be backed but some fully support his stance while others believe it’s too harsh. The SEC has not yet responded to the criticism.

Also read: Montenegro Petitions Against Do Kwon Extradition

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