SEC Commissioner: New Proposal Could Give SEC Expansive Power to Regulate Crypto, Defi Platforms

A commissioner with the U.S. Securities and Exchange Commission (SEC) has voiced concerns regarding a caller connection that could springiness the securities regulator caller powers to modulate cryptocurrency platforms and decentralized concern (defi) protocols.

New SEC Proposal Could Hurt the Crypto Industry, Commissioner Peirce Cautions

U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has warned that a caller connection could beryllium devastating for the crypto industry, Bloomberg reported Tuesday. Peirce is simply a pro-bitcoin commissioner, who is besides known successful the crypto assemblage arsenic “crypto mom.”

The SEC projected amendments to modulate “significant Treasury markets platforms” wrong Regulation ATS past week. The 654-page connection seeks to “expand Regulation ATS for alternate trading systems (ATS) that commercialized authorities securities, NMS [National Market System] stock, and different securities.” It besides proposes to “extend Regulation SCI to ATSs that commercialized authorities securities” and “amend the SEC regularisation regarding the explanation of an ‘exchange’ to code a regulatory gap.”

Commissioner Peirce warned that portion the connection does not notation crypto, it could springiness officials sweeping caller powers to scrutinize cryptocurrency platforms, including decentralized concern (defi) protocols. She told the publication:

The connection includes precise expansive language, which, unneurotic with the chair’s evident involvement successful regulating each things crypto, suggests that it could beryllium utilized to modulate crypto platforms.

The pro-bitcoin commissioner stressed that “The connection could scope much types of trading mechanisms, including perchance defi protocols.”

The securities watchdog claims that the connection is meant to adjacent a “regulatory gap” created by marketplace participants utilizing platforms that are not registered arsenic exchanges oregon brokerages to commercialized each types of securities. SEC Chairman Gary Gensler said past week that it would “promote resiliency and greater entree successful the Treasury market.”

The connection is present unfastened for nationalist comments. The SEC indispensable clasp different ballot earlier the regulations go final.

Gensler has been vocal astir the need to regulate cryptocurrency and defi platforms. In December, helium added a crypto advisor to his executive staff. In January, the SEC president said, “If the trading platforms don’t travel into the regulated space, it’d beryllium different twelvemonth of the nationalist being vulnerable.”

Do you deliberation the SEC should person much powerfulness to modulate crypto trading platforms and defi protocols? Let america cognize successful the comments conception below.

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