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 new proposal that could give the securities regulator new powers to regulate cryptocurrency platforms and decentralized finance (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 recent proposal could be devastating for the crypto industry, Bloomberg reported Tuesday. Peirce is a pro-bitcoin commissioner, who is also known in the crypto community as “crypto mom.”
The SEC proposed amendments to regulate “significant Treasury markets platforms” within Regulation ATS last week. The 654-page proposal seeks to “expand Regulation ATS for alternative trading systems (ATS) that trade government securities, NMS [National Market System] stock, and other securities.” It also proposes to “extend Regulation SCI to ATSs that trade government securities” and “amend the SEC rule regarding the definition of an ‘exchange’ to address a regulatory gap.”
Commissioner Peirce warned that while the proposal does not mention crypto, it could give officials sweeping new powers to scrutinize cryptocurrency platforms, including decentralized finance (defi) protocols. She told the publication: The proposal includes very expansive language, which, together with the chair’s apparent interest in regulating all things crypto, suggests that it could be used to regulate crypto platforms.
The pro-bitcoin commissioner stressed that “The proposal could reach more types of trading mechanisms, including potentially defi protocols.”
The securities watchdog claims that the proposal is meant to close a “regulatory gap” created by market participants using platforms that are not registered as exchanges or brokerages to trade all types of securities. SEC Chairman Gary Gensler said last week that it would “promote resiliency and greater access in the Treasury market.”
The proposal is now open for public comments. The SEC must hold another vote before the regulations become final.
Gensler has been vocal about the need to regulate cryptocurrency and defi platforms. In December, he added a crypto adviser to his executive staff. In January, the SEC chairman said, “If the trading platforms don’t come into the regulated space, it’d be another year of the public being vulnerable.” Tags in this story crypto exchanges, Crypto regulation, crypto trading platforms, cryptocurrency platforms, decentralized finance, DeFi, Defi protocols, Gary Gensler, regulation of crypto platforms, SEC, SEC Commissioner
Do you think the SEC should have more power to regulate crypto trading platforms and defi protocols? Let us know in the comments section below. Kevin Helms
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. India"s Prime Minister Modi: Digital Rupee Will Strengthen Digital Economy, Revolutionize Fintech REGULATION | 16 hours ago South African Regulator Urges Public to Be More Cautious When Dealing With FTX, Bybit REGULATION | 20 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleJump Crypto Replaces $320 Million in Ethereum Taken From Wormhole Exploit Next articleMicrostrategy CEO on Mainstream Bitcoin Adoption: ‘I See Evidence of a Lot More Institutional Adoption’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItReport: Nvidia’s Lite Hash Rate Tech to Stop Crypto Miners "Was Pointless"
In mid-May 2021, the American multinational technology company Nvidia Corporation revealed that it added a hashrate limiter to curb the use of cryptocurrency mining with its graphics processing units (GPUs). However, crypto miners now say the move was pointless, and ... read more.Weekly NFT Sales Drop 13% While Crypto Prices Rebound From Market Rout Pop Star Justin Bieber Buys Bored Ape NFT for $1.29 Million, Pays More Than 300% Above Floor Judge Orders Argentinian Soccer Association to Drop Binance Deal Salvadoran President Nayib Bukele Expects Bitcoin to Experience a "Gigantic Price Increase"