The U.S. Securities and Exchange Commission (SEC) is falling short when it comes to addressing how it deals with the digital asset industry, said TuongVy Le, partner and head of regulatory and policy at investment firm Bain Capital.

What the federal agency is doing is regulating “almost entirely through enforcement actions,” Le, a former chief counsel for the SEC’s Office of Legislative and Intergovernmental Affairs, said on CoinDesk TV’s “First Mover” Tuesday.

“When the SEC tells us that something is not compliant, it’s not necessarily the same thing as telling us what they would consider compliant,” Le said in reference to the $30 million settlement the agency reached with Kraken, under which the centralized exchange will shutter its staking service platform to U.S. customers.