SEC’s New Crypto Czar Wants Coin Industry to Step Out of Shadows

The Securities and Exchange Commission is well known for bringing landmark cases against the biggest names in finance.

But its powers to punish individuals and companies can also be intimidating, something that’s very much on the mind of Valerie Szczepanik, the SEC’s new top official overseeing the nascent cryptocurrency industry. In taking her new job in June, she left the regulator’s vaunted enforcement division and joined a less renowned SEC unit that oversees initial public offerings and other corporate stock sales.

A key reason for the less-confrontational approach: digital-token enthusiasts’ deep mistrust of government. They’re hesitant to discuss their business ...