SEC Slammed for Skipping Public Input on Crypto Rules, Says Watchdog Group

In Brief:

Better Markets accuses SEC of bypassing formal rulemaking for crypto policies.

Criticism centers on meme coin guidance lacking legal and public review.

Policy advocacy group Better Markets has publicly criticized the U.S. Securities and Exchange Commission (SEC) for sidestepping formal public rulemaking procedures in its approach to cryptocurrency regulation.

In an open letter, Better Markets accused the SEC’s crypto working group of issuing major policy guidance—such as classifying meme coins as “collectibles”—without opening the decisions to public comment. The group argues this violates the transparency commitments made under Chairman Paul Atkins.

Benjamin Schiffrin, Securities Policy Director at Better Markets, challenged the SEC's February memo, noting that the high-risk, volatile nature of meme coins aligns more with securities than collectibles. He added that issuing regulatory classifications without legal foundation or public review erodes the SEC’s credibility.

The group is now demanding that the SEC resume a transparent, rule-based process, warning that bypassing these procedures may lead to a regulatory crisis in the crypto sector.

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