[ad_1]
The cryptocurrency industry is moving at a fast pace. However, global regulation has made it fairly difficult for crypto companies and organizations to freely expand their operations. It is expected that a top regulator of Wall Street might use its authority to exempt crypto companies from some securities laws. It will be done in a bid to foster the growth of the sector and ensure its compliance. The news was shared by the Securities and Exchange Commission Chair, Gary Gensler.
Gensler stated, “We do have robust authorities from Congress to use our exemptive authorities that we can tailor.” Gensler mentions that the authority is working in collaboration with the digital asset community to serve consumers. A similar approach is used for asset-backed securities and equity offerings.
The SEC Emphasizes Regulatory Compliance for Crypto Companies
The SEC has categorically said that many crypto organizations are non-compliant. Thus, they are offering unregistered securities. According to the SEC, this is one of the most significant reasons for crypto regulation and sanctions. However, the authority aims to move forward along with the cryptocurrency industry. It has invited lending and trading platforms for talks to figure out a way forward.
But on the other hand, the stakeholders of the digital asset industry argue that the SEC has not provided a clear path for registration. It makes it difficult for different platforms and firms to register with the authority. As of now, the crypto market is undergoing a bearish spell.
Several crypto lenders and hedge funds have struggled to keep up with the developments of the market. Many of them have filed for bankruptcy due to the ongoing liquidity crisis. The Celsius Network is an example of such a crypto lender. Another lender, BlockFi was financially supported by the exchange FTX US to avoid bankruptcy.
Under current circumstances, many cryptocurrency platforms are finding ways to reach a settlement with the SEC. This will give them a chance to stay compliant with the regulatory standards of the finance world. As cryptocurrencies continue to gain acceptance in the mainstream economic world, it is essential to make sure that every stakeholder and authority moves along collectively for more sustainable usage of digital assets.
It seems that the SEC is relaxing its grip over cryptocurrency platforms. However, it is yet to be seen if these platforms aim to register and comply with the SEC or not. Nonetheless, it is a good sign that the growth of the digital asset industry is favored by the SEC.
[ad_2]
Source link