A commissioner with the U.S. Securities and Alternate Fee (SEC) has voiced considerations relating to a brand new proposal that might give the securities regulator new powers to manage cryptocurrency platforms and decentralized finance (defi) protocols.
New SEC Proposal May Damage the Crypto Business, Commissioner Peirce Cautions
U.S. Securities and Alternate Fee (SEC) Commissioner Hester Peirce has warned {that a} current proposal might be devastating for the crypto trade, Bloomberg reported Tuesday. Peirce is a pro-bitcoin commissioner, who can be recognized within the crypto neighborhood as “crypto mother.”
The SEC proposed amendments to manage “important Treasury markets platforms” inside Regulation ATS final week. The 654-page proposal seeks to “broaden Regulation ATS for different buying and selling methods (ATS) that commerce authorities securities, NMS [National Market System] inventory, and different securities.” It additionally proposes to “prolong Regulation SCI to ATSs that commerce authorities securities” and “amend the SEC rule relating to the definition of an ‘change’ to handle a regulatory hole.”
Commissioner Peirce warned that whereas the proposal doesn’t point out crypto, it might give officers sweeping new powers to scrutinize cryptocurrency platforms, together with decentralized finance (defi) protocols. She instructed the publication:
The proposal contains very expansive language, which, along with the chair’s obvious curiosity in regulating all issues crypto, means that it might be used to manage crypto platforms.
The professional-bitcoin commissioner confused that “The proposal might attain extra varieties of buying and selling mechanisms, together with probably defi protocols.”
The securities watchdog claims that the proposal is supposed to shut a “regulatory hole” created by market individuals utilizing platforms that aren’t registered as exchanges or brokerages to commerce all varieties of securities. SEC Chairman Gary Gensler stated final week that it will “promote resiliency and better entry within the Treasury market.”
The proposal is now open for public feedback. The SEC should maintain one other vote earlier than the laws turn into last.
Gensler has been vocal concerning the want to manage cryptocurrency and defi platforms. In December, he added a crypto adviser to his government workers. In January, the SEC chairman stated, “If the buying and selling platforms don’t come into the regulated house, it’d be one other yr of the general public being susceptible.”
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