SEC Commissioner Uyeda Delivers Remarks on Regulatory Overreach

In an address to the Council of Institutional Investors conference, Securities and Exchange Commission (SEC) Commissioner Mark Uyeda discussed several final rules applicable to private fund advisers and dealers as well as cryptocurrencies and the definition of a security. In his remarks on these issues, Commissioner Uyeda emphasized the importance of regulatory clarity for market participants. He noted the Commission “was designed by Congress to have a degree of independence from the political process,” and in return, “the Commission’s jurisdiction is limited to only those areas specifically authorized by statute.” He underscored that the definition of a “dealer” and the definition of a “security” are being broadly interpreted by some at the Commission. Commissioner Uyeda emphasized that “When a regulator can, without practical limitation, promulgate, interpret, and enforce rules and guidance, including retroactively, the temptation to be arbitrary in the exercise of administrative power and enforcement can be great.”

Click here to read Commissioner Uyeda’s full remarks at the CII conference.