For the former adviser to the SEC, the regulator has everything going against it in a dispute against Coinbase is an American company that operates a cryptocurrency exchange platform. for the alleged trading of tokenized securities, as the agency does not even have a current legal framework that adequately addresses these assets.
- It will be a mistake that the SEC act against Coinbase
- La Federal Securities Act The 1930s is obsolete in this area.
- La SEC has acted in questionable ways against crypto companies.
- Even several officials criticize the position of the SEC against cryptocurrencies
The former advisor to the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC) and associate professor of law specializing in securities and finance for the Antonin Scalia University JW Verret, warned that the regulator would be making a serious mistake if it continues with its investigation against Coinbase and other important exchanges.
The SEC is about to make a big mistake
Verret said as much in an opinion piece published by the Wall Street Journal, where he indicated that the SEC would be “about to shoot itself in the foot” if it goes ahead with what it allegedly intends to do, since the investigation against Coinbase and other exchanges is based on the alleged trading of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets that may well qualify as securities.
In this regard, Verret commented:
“La posición de la SEC, alegando que la mayoría de los tokens son valores y deben registrarse o enfrentar a las leyes, es obtusa. También es un enfoque que funciona en beneficio de los estafadores y vendedores ambulantes que han abusado del espacio de las criptomonedas”.
La Federal Securities Act is obsolete
For the former adviser to the SEC, the agency should choose to rethink the Federal Securities Act which dates back to 1930 and falls far short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. of the new proposals emerging from the hand of cutting-edge technologies. Therefore, such legislation is less than adequate to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. these assets and issue a rating, and also added that if developers wanted to properly register their projects they would not be able to do so either.
In this regard, he noted that most projects within the crypto space do not operate like traditional companies, as they generally do not have a board of directors, a CEO or a CFO who can consign the necessary documentation documentation is a part of token economies that stores all the details of an asset on the blockchain. required by the SEC.
He also added that the SEC is still anchored to processes and limitations that do not fit the functioning of new organizations and cryptocurrencies. Therefore, he stresses that the regulator should not make the same mistakes that happened when the arrival of the Internet definitely changed the way companies operate, and invites them to rethink their position if they do not want to bring more problems trying to address the market an area or arena, online or offline, in which commercial dealings are conducted. for digital currencies.
There are people in the SEC who have it clearer
Una de las recomendaciones más interesantes presentadas por Verret alude a que la SEC should pay more attention to the opinion of its representatives. In this regard, she highlighted the position of Commissioner Hester Peirce, who is known in this ecosystem as“Crypto Mom”which is inclined to think about building a regulatory regime that considers the needs of crypto-investors, rather than simply forcing new proposals to operate under outdated guidelines.
As for Peirce, despite being listed as a commissioner for the SEC, This has been characterized by having very hard positions against the regulator she represents, especially when the issue is about cryptocurrencies. The official has spoken out about the obsolete nature and methods of the agency towards everything associated with digital currencies, even criticizing its stance against the approval of the first exchange-traded fund. (ETF) based entirely on Bitcoin.
La SEC vs cryptocurrencies
Both Verret and Peirce seem to point against the refusal of the SEC against everything that has to do with cryptocurrencies, a stance that has led him to perform quite questionable actions in recent times.
A few weeks ago, the SEC noted that Coinbase would be incurring in violations of securities laws by trading on its platform a place to buy, sell and store cryptocurrency several cryptoassets that it considers qualify as securities. According to several analysts, this measure borders on the arbitrary as there is still no official position of the regulator on the main cryptocurrencies, this as to look under the same criteria to other assets with less trading volume.
Let’s keep in mind that the SEC se encuentra enfrascada en una batalla contra Ripple Labs in court, which it accuses of trading securities without proper authorization at the time it offered the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. for presale. XRP. The litigation in question appears to tip the balance in favor of the utility company. Blockchain, which argues that cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. does not qualify as a security.
Another fact that is questionable for many is the refusal of the SEC to the proposals for a ETF an Exchange-traded Fund, an investment fund that users trade on exchanges and trading platforms. Bitcoin. Such has been the agency’s stance that it has already Grayscale is contemplating legal action for what it considers unfair treatment against the digital currency. The CEO of VanEck commented a few months ago that in his view, the agency has “sequestered”. The requests until they have more power to be able to regulate this space according to their convictions.
Among many, critics and analysts defend that because of the position of the SEC, The US in general is missing big opportunities in the cryptocurrency market, so once everything is clearer locally, it might be too late for the country to occupy a very competitive position within the sector.
- Binance US delisted after the SEC rated it a security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value.
- SEC charges Forsage founders and promoters with operating smart contract in traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchain. pyramid scheme
- Sen. Pat Toomey sends letter to SEC criticizing its failure to act on cryptocurrency crisis
Version by Angel Di Matteo / DiarioBitcoin
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