The Securities and Exchange Commission (SEC) has appointed Eric Werner as its Fort Worth regional director, tasked with overseeing Texas and a broad region of the US West and Southwest. Cryptocurrencies have raised concerns among regulators about their potential use for illegal activities, such as money laundering and terrorism financing, due to their anonymity and lack of regulation. As such, the SEC has become more active in regulating the sector in recent years, taking enforcement actions against those believed to have violated securities laws, so as to protect investors and maintain the integrity of the securities market. Werner, who will lead a region that is home to many cryptocurrency companies, has extensive experience in securities enforcement, having cut his teeth during Jay Clayton’s tenure, but his appointment may hinder growth and innovation.
The blockchain industry has long been advocating for Texas to become a hub for cryptocurrency and other emerging technologies, with state officials taking actions to support such innovation. However, regulatory hurdles and the need to protect consumers from fraud and other abuse mean that any efforts to establish Texas as a hub must be balanced with effective regulations, which the SEC has been increasingly enforcing through emergency actions. While some view these actions as an overstep of legal bounds or authoritarian, they are often used in situations where there is an imminent threat to investors or markets and insufficient time to follow standard rulemaking procedures.
