Don Wilson Calls for Abolishment of SEC and CFTC for Regulatory Reform

Last updated:

Author

Hongji Feng

Author

Hongji Feng

About Author

Hongji is a crypto and tech reporter. He graduated from Northwestern University’s Medill School of Journalism with a Bachelor’s and a Master’s. He has previously interned at HTX (Huobi Global),…

Last updated:

Why Trust Cryptonews

With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews

SEC

DRW founder Donald Wilson has called for the replacement of both the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) with a new regulatory body.

According to a recent report by Bloomberg, Wilson described the ongoing friction between the SEC and the CFTC as “an ongoing counterproductive force” during an interview, emphasizing the need for a unified approach to financial regulation.

Gary Gensler’s Counterproductive Litigation Approach

Under scrutiny for its crypto activities, DRW Holdings’ crypto arm, Cumberland, was recently accused by the SEC of operating as an unregistered securities dealer. The lawsuit is part of broader enforcement actions targeting the industry, raising questions about the SEC’s regulatory approach.

Wilson expressed concerns about the agency’s priorities, describing some enforcement actions as wasteful. He highlighted the impact on businesses navigating unclear regulatory boundaries, particularly under outgoing SEC Chair Gary Gensler‘s tenure.

“Gary has launched a bunch of counterproductive litigation, almost kind of like he just wanted to get some of these things out there on his way out the door [leaving] some nice presents behind for the next SEC chair to unwind,” said Wilson.

New Regulator to Replace SEC and CFTC?

The report stated that DRW has faced previous regulatory challenges, including a lengthy dispute with the CFTC over allegations of market manipulation. The firm ultimately prevailed in 2018, with Wilson pointing to the case as evidence of systemic inefficiencies in the dual-agency model.

“It’s time to just start from scratch, to actually get rid of both the CFTC and the SEC and create an entirely new regulator,” suggested Wilson.

The idea of merging the SEC and CFTC has been discussed in the past but has gained renewed attention amid growing calls for clearer oversight of the crypto sector.

Wilson’s comments come at a time of transition for the SEC, with Gensler’s resignation announced ahead of the incoming Trump administration. Former SEC commissioner Paul Atkins is reportedly a leading candidate to direct the agency.

You May Also Like