- Reports of conflicting debates over crypto guidance rise from SEC.
- The crypto regulations in the US are rumored to be tightening up soon.
- The current Cyber Chief and former Attorney are in total disagreement.
Standardizing the crypto trade through regulations continues to stay in the news for one reason or another. Bringing out the rigidity between regulatory bodies and digital trade, the United States SEC’s cyber unit and a former SEC counselor presented contrasting opinions on the bureau’s efficacy in standardizing cryptocurrencies.
Kristina Littman, Cyber unit chief of U.S. Securities and Exchange Commission (SEC), shed light on the most recent crypto violation cases Telegram Group Inc worth $18.5 million and Kik Interactive Inc. worth $5 million in settlements. The litigation proved the seriousness of SEC’s section 5 regulation, deeming it mandatory to comply with registration preconditions for initial coin offerings (ICO).
Lack of crypto guidance
Acknowledging Littman’s stance Cadigan, a legal representative of Kik Interactive, offered a differing stance on the situation, clearly highlighting the skirmishes between monetary regulators and crypto business owners over crypto guidance.
Calling out on the lack of on-ground crypto regulations and guidance by the SEC within the digital industry, the ex enforcement general thinks critically of including industry-led requirements into consideration before enforcement laws are put in place.
Backing up Kik’s case, Cadigan pointed out that July 2017’s Decentralized Autonomous Organization (DAO) report by SEC had alerted about ICOs with companies of certain conditions that did not apply to Kik at that point of time.
Blasting SEC for its negatively constricting enforcements, he said the agency is constantly embarking on the “can’t do” notion instead of highlighting the possibilities of what can be done in the crypto field and the need for crypto guidance. Hester Pierce, SEC Commissioner, continues to be a positive figure highlighting the industry’s features and, in turn, has been terms the “Crypto Mom.”
Cardigan applauded her three years proposal of crypto projects with minimum securities violations. Such projects and figures are highly appreciated and help bring potential innovations out in the field, but given the SEC’s rulings, Cardigan predicts them non-acceptance.
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