SEC encryption rules: An invitation to specially designed regulations

The US Securities and Stock Exchange Committee (SEC) has criticized the method of applying the traditional market rules to the sophisticated cryptocurrency sector quickly. according to A16z CryptoThis approach has been considered counterproductive to enhance innovation and ensure investor protection.

Challenges of applying traditional rules on encryption

SEC’s historical approach, which is often called “regulation of enforcement”, includes extension of current securities bases to new technologies such as Blockchain and Crypto assets. This method has been criticized because of its lack of clarity and adaptation to the unique properties of encrypted currencies. The traditional rules, designed for traditional securities markets, are not consistent with the decentralized and digital nature of Blockchain technologies.

The need for detailed regulations

There is an increasing consensus that SEC must adopt a detailed regulatory framework designed on the encryption industry. Such regulations will take into account the distinctive features of encryption assets, such as distinctive securities and decentral financing products (Defi), which are very different from traditional financial tools.

Current regulatory proposals, such as the best base of implementation and protection base, highlight the challenges of encryption installation in the current frameworks. These rules, mainly designed for traditional markets, fail to consider the operational dynamics of encryption, which leads to confusion and innovation that is likely to suffocate.

The proposed approach to effective organization

Industry experts suggest that SEC should cooperate with encryption leaders to collect market data and visions. This cooperation will help formulate the rules that not only protect investors, but also accommodate the innovative nature of encrypted currencies. SEC was cited in post -financial security bodies, as some of the market participants gave registration requirements, as a successful example of the designer organization.

Moreover, the Securities and Stock Exchange Committee is encouraged to use its current tools, such as the 10B-5 Stock Exchange Law, to address fraud and manipulation, rather than imposing inappropriate rules. This approach can prevent organizational transgression and enhance a balanced environment for innovation.

conclusion

The discussion emphasizes the development of SEC rules on the need for an accurate approach to organizing encrypted currency. By realizing the unique features of the encryption markets and working with stakeholders in the industry, SEC can develop a framework that guarantees the protection of investors while enhancing technological progress.

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