SEC Commissioner Suggests Regulator Should be More Cooperative

 

An SEC Commissioner believes the agency isn’t doing enough to work with cryptocurrency firms in establishing regulations that they can comply with.


PlayUnmute

Fullscreen

VDO.AI

 Skip Ad

- be[IN]crypto

“I think it’s safe to assume that crypto is going to grow in size,” Peirce told The Wall Street Journal. “And so what we can do now to invest in building a reasonable framework, I think, will pay off down the line.”


Disadvantaged smaller firms


Peirce made a point highlighting the bias that smaller firms would face if broadly regulated the same as established financial firms. Incidentally, this point also illuminates why the SEC should take a more active role to collaborate with crypto firms. For startups, the process of complying with SEC rules would be “tremendously hard,” Peirce emphasized.


According to Peirce, most of the firms the SEC supervises have an established relationship with the regulator, being established financial entities themselves. Typically, when these firms want to introduce a new product or services, they have the financial capacity to wait through the lengthy regulatory process, she said. Unfortunately, dependent on fundraising which is eventually exhausted, entities just entering the market cannot afford to wait through such processes.


Additionally, legacy firms also benefit from these established relationships by being able to approach the SEC to craft a viable framework. “We obviously aren’t the one giving legal advice, but people come in and talk to us, and run ideas by us, and they try to work with us to craft a framework that will work for a particular product or service,” Peirce related. 


However, she believes that the difficulty posed by this convoluted process also intimidates smaller firms. “I think a lot of people are avoiding trying to build things in the SEC space precisely because it’s so difficult to navigate that,” Peirce said. This echos previous criticism of hers regarding the SEC’s refusal to provide clearer guidance for crypto firms.


SEC approves Bitcoin ETF


Despite Peirce’s criticism, the SEC has taken steps in recent days to further integrate cryptocurrencies into regulated markets. Last week, it approved the first exchange-traded fund (ETF) based on Bitcoin futures, which were introduced at the beginning of the week. More are poised to be approved shortly.

Popular posts from this blog

How AI is Forcing Marketers to Reinvent the Industry

  From customer support bots to social media bots that respond to comments and questions automatically, the age of artificial intelligence in marketing is already here. However, because of how ingrained AI has become in our everyday lives, marketers now have to think about things slightly differently. Instead of looking at customer journeys, the focus has shifted into how to teach AI about customers. AI came about as a means of developing a way to give consumers a streamlined experience in their dealing with a company. As the February 2021 CMO Survey notes, this goal has become one of the  top priorities   for the world's largest marketing firms. Because of AI's introduction into the mix, marketers now have to rethink and reinvent the industry from the ground up. Tech and the customer life cycle Most businesses started adopting AI in the form of chatbots. The intent was to deliver a personalized experience while limiting the number of human resources taken up in answering rote
Read more

TranZact Raises $7 Million To Digitally Transform SMEs

Image
  TranZact, a SME tech startup offering a SaaS-based digital transformation tool for SMEs, has raised $7 million in Series A funding. The funding was led by SF-based Tribe Capital with participation from Prime Venture Partners, Gemba Capital and existing investor Kae Capital.   Pexels The funds will be used to innovate products, leverage evolving technology and harness the power of data. TranZact also plans to invest in new talent and expand its team across all functions. TranZact helps SMEs make data driven decisions for key business operations and focus on growth by streamlining inventory, purchase, sales and quotation management processes in a hassle-free and user-friendly manner.  The company’s USP lies in its schemes. It provides Forever Freemium Plan, a free plan that helps digitize basic processes; Fast Onboarding in Five Days, a self-serve product that reduces onboarding time significantly and Excel Like User Interface, a plan that ensures adoption from users across all the dep
Read more