US Securities body could tailor disclosures for crypto firms
The latest statement of an official from the US SEC agency is giving a precise hint that the agency may open a portal for the crypto businesses to go with a collaborative approach with the agency, to bring better information about the benefits & risks associated with particular crypto services, So that crypto investors remain aware about the degree of risk that they are taking with particular crypto or crypto project investment.
The United States Securities and Exchange Commission (SEC) is the leading regulatory body in America, which regulates all spot money markets including the crypto market. Due to unclear regulatory policies by different government agencies, the SEC agency showed highly bitter stances against the crypto industry. Gary Gensler, chairman of SEC agency was earlier supposed to support the crypto & blockchain industry but after his appointment in SEC agency as a chairman made him a crypto critic.
On 14 July, Gary Gensler appeared in an interview with Yahoo Finance. Through the interview, Gary invited all the crypto companies including lending & trading platforms to get in touch with the SEC agency.
The SEC chairman said that they have more power to give exemption over congress. Gary explained:
“come in, talk to us. We do have robust authorities from Congress, also, to use our exemption authority so that we can tailor investor protection”
Further Gary indirectly suggested every type of crypto project or companies to get into direct touch with regulatory bodies. According to Gary, every different type of business with different types of crypto assets may pose a different nature.
“Even tailoring what the disclosures might be, because maybe not all of the disclosures for somebody issuing equity are the same as a crypto token. But I would note we don’t have the same disclosures for asset-backed security that we do for a stock offering. So it’s a thoughtful way to sort of tailor things,” Gary said.
Significant downturn in the crypto market & investors protection need
The statement by the SEC chairman in favor of crypto investors & crypto companies is coming just after the warning by JP Morgan Chase analysis, which predicted that price of Bitcoin may face continuous correction in the near future.
It is worth noting that, such statements by the SEC agency are giving a virtual positive force on all the crypto companies to get registered with the SEC agency so that the regulatory body can thoroughly analyze every business model to find out the degree of risk associated with that particular Crypto business model.
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