“The Market should clearly understand that having no conversations on Cryptocurrency is a way to announce the continued operation of our security laws across the area of developing investor interest”, two SEC commissioners stated.
Hester Peirce, a US Securities and Exchange Commission commissioner dubbed “Crypto Mom” by many in the industry, is opposed to the regulatory body’s agenda for not clarifying on digital assets.
Peirce and SEC Commissioner Elad Roisman expressed their disappointment that chairperson Gary Gensler’s regulatory agenda didn’t incorporate items that could help companies raise funds, enhancing investor securities, vanquishing the latest commission rules, and throwing some light clearly on crypto in a joint declaration that was released on Monday. The two authorities believe that the uncertainty in Gensler’s attitude could trouble the companies who are looking forward to step into the market.
Instead of facing the daunting task of developing rules that allow investors and regulated companies to interact with digital assets, including digital asset securities,
“Rather than tackling the difficult task of formulating rules for permitting investors and regulated entities to connect with digital assets, including digital asset securities,” Peirce and Roisman said,
“The stillness of the Agenda regarding crypto gesture could be responsible for making the market think and asking queries if the security laws will continue to be there in this region of amplifying investor interest.” “Such silence empowers fraudsters while hindering law-abiding participants.”
The proposed regulatory framework also defers amendments related to audit trails of information surrounding trades — presumably including crypto — and the people behind the transactions, according to the pair. Deferring action on these protections, according to Peirce and Roisman, “leaves investors’ data vulnerable.”
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Since April, Gensler, who has served as SEC chair, has made a number of public pronouncements urging crypto businesses to “come in and chat” about any concerns they may have about token projects that could qualify as securities. According to Cointelegraph, Gensler wanted to implement crypto-related policy changes in the areas of token offerings, decentralised finance, stablecoins, custody, exchange-traded funds, and lending platforms in August.
Many have accused the SEC, as a primary regulator for financial goods in the United States, for delaying the launch of exchange-traded funds (ETFs) tied to cryptocurrencies. Although the government recently approved ETFs from investment managers ProShares and Valkyrie that have exposure to Bitcoin (BTC) futures, it has yet to approve another crypto ETF.