DRW founder Donald Wilson has called for replacing the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) with a new regulator.
According to a recent Bloomberg report, Wilson described the ongoing friction between the SEC and CFTC as an “ongoing counter-productive force” during an interview, stressing the need for a unified approach to financial regulation.
Wilson expressed concerns about the agency’s priorities, describing some enforcement actions as wasteful. He highlighted the impact on companies navigating unclear regulatory boundaries, particularly during the tenure of outgoing SEC Chairman Gary Gensler.
“Gary initiated some counter-productive lawsuits, as if he just wanted to get some of this stuff out of his system, on his way out the door [leaving] some nice gifts for the next SEC chairman to unwind,” – Wilson said.
The report said DRW had already struggled with previous regulatory challenges, including a lengthy dispute with the CFTC over allegations of market manipulation. The company eventually won in 2018, and Wilson pointed to the case as evidence of systemic inefficiencies in the dual agency model.
“It’s time to start from scratch, actually get rid of both the CFTC and the SEC, and create an entirely new regulator,” he said – Wilson suggested. The idea of merging the SEC and CFTC has been discussed in the past, but has gained new attention amid growing calls for clearer oversight of the cryptocurrency sector.
