The legal boss for wormholes has concerns

Cathy IOON praised the remarks of the Peirce Commission on the crypto regulation, but expressed concerns about its play on the regulatory sand box.

The Securities and Exchange Commission has radically transferred its policy to the CRIPTO, bringing voices such as the trustee of Hester M. Peirce on the forefront. However, some still believe that its pro-cripto approach has important restrictions.

Cathy IOON, the General Advisor in the Workers Foundation, recently commented notes made a peirce commissioner. While somewhat agreed that the necessary regulatory exceptions for CRIPTO, criticized Peirce’s idea of ​​regulatory sand.

A celebrity, discussing that debate centers are about tokenized securities that fall into the Jurisdiction of SEC. Any type of security must meet strict regulatory requirements before the dec is considered compatible. However, significant challenges are coming.

Sandframes are excellent in theory, but there are risks: Ion

Peirce points to liquid technical issues as a key obstacle. In particular, the technical infrastructure remains underdeveloped. IOON has recognized this as a convincing argument in favor of regulatory exemptions for the tokenized securities projects.

“Infrastructure required to support tokenized securities remain is still quite underdeveloped and expensive for implementation,” IOON, RVHOLE.

However, IOON noted not to agree with Peirce’s concept of regulatory sand. The concept, which has been advocated for a long time, refers to enabling the launch to test certain products that exist in a regulatory gray area.

These companies are carefully monitored by regulators, but they face less penalty and reduced compliance burden. IOON claims that sand sound sounds in theory, but they introduce risks such as arbitrary execution and favorites.

“Sandbox is just as good as free and supports the offer of regulators to the participants of the sand. There is also a concern that regulators can favor Sandbox participants, which has led to biased oversight or even weakened execution.

Instead of the regulatory sandbox, the IOON proposed a regulatory exemption of limited duration. This would allow companies to test their products in a real environment, helping them adapt to real terms and more efficient scale.