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SEC Completes Cryptocurrency Regulation

27.05.2022 SEC is a commission that works with securities and platforms that provide their trading. The commissioner of this institution has announced that this securities regulator will not exercise control over digital assets.

“We do not give innovation a chance to develop and properly implement experiments in the market. If failure continues to haunt, the consequences will be long-term.”

Commissioner predicts negative influences from control

This position is held by Hester Pierce. She spoke about her worries about the fact that the United States of America has completely abandoned asset adjustments. This representative is known in the field of digital assets as the “mother of crypto”. This is due to the fact that she provides invaluable support and coverage of fraud issues on an ongoing basis.

Her concern now is entirely directed at the lack of regulation by the SEC. She said, “There is one situation that worries me the most. We ourselves miss the opportunity to regulate. Without control, innovation will not evolve, which will lead to serious consequences.”

Only during the last couple of weeks, there have been significant losses in the cryptocurrency market. If we count from the beginning of the month, then they amount to approximately $ 500 billion. It became even worse after the situation with the complete collapse of the LUNA project and the stablecoin on the UST algorithm. These assets have practically depreciated in several days of sharp decline. This situation forced the US Congress to resume emergency control of similar assets.

After the two cryptocurrencies ceased to exist at once, the chairman of the commission announced that this was not an isolated case and that many tokens could collapse, and investors could lose profits or go into the red. He also said in his statement that cryptocurrencies with quotes on trading floors are considered securities and must undergo mandatory registration. At the same time, the chairman emphasized that the commission is not equipped with sufficient tools and means for high-quality supervision over financial markets. The regulatory body does not have the required number of specialists.

The commission itself, until recently, was oriented towards the legal side of the issue. Since 2017, the service has established a department dealing with the control of cryptocurrencies and companies that work with them. During the supervision, 80 protocols with coercive measures were drawn up. They recently announced that they were doubling the division to improve efficiency.