SEC Commissioner: SEC enforcement action against ShapeShift adds to crypto regulatory ambiguity

U.S. SEC Commissioners Hester Peirce and Mark Uyeda criticized the agency’s latest enforcement action against crypto company ShapeShift on Wednesday, saying the agency’s settlement with ShapeShift “adds to the ambiguity of the crypto industry.” Peirce and Uyeda said the SEC’s order failed to specify which of the 79 crypto-assets were considered investment contracts and did not provide an explanation. It was reported yesterday that the U.S. SEC filed a cease-and-desist order against ShapeShift, a cryptocurrency exchange that previously operated in Denver, Colorado, but has since closed its U.S. exchange operations. The SEC said it was operating as an unregistered dealer in cryptocurrency securities until 2021. In a filing with the SEC on Tuesday, the SEC said it would accept ShapeShift's proposed settlement, which includes a $275,000 fine and an agreement that the company will no longer violate the Securities Exchange Act. The filing states that ShapeShift offers “at least 79 cryptoassets” to its clients, including “assets offered and sold as investment contracts,” although it does not identify any specific digital assets as securities.