Former SEC Internet Application Office Director John Reed Stark made remarkable statements at the Second Crypto Money Mission Round Table meeting in Washington. Stark, crypto currencies should be subject to the existing securities laws, he said. Stark argues that investors should be protected, said that loosening the regulatory approach can cause serious risks. Caroline Crenshaw, one of the Second commissioners who attended the meeting, said that the change of the current order could have dangerous consequences.
More Protection Call for Investors
John Reed Stark emphasized that the transactions in the field of crypto currency are for investment purposes and that investors need protection. According to Stark, people who buy crypto currency are not collector; Just like the owners of stock. For this reason, he argued that they should be protected under the current laws of securities. “Those who buy crypto currencies are not collectors. We know that they are investors, and the Mission of SEC is the investor protection, Stark Stark said, said SEC should not deviate from his post.
Stark also said that almost all of the relevant assets should be evaluated within the scope of securities. “I read all the files. Each time the relevant party lost,” he clearly demonstrated his stance. In recent years, the SEC against crypto currencies in the most of the court decisions, these assets indicate that the securities.
Stark pointed out that regulatory reforms may serve the interests of some investor groups in a written statement and emphasized that the flexible arrangements made under the name of financial innovation may lead to a distance from investor protection.
Legislation relaxation may increase risks
Caroline Crenshaw, the democratic commissioner of SEC, who attended the meeting, was cautious against a change of regulation in the crypto currency market. Crenshaw pointed out that such regulation changes may have negative consequences, not only for crypto currencies, but also for the general financial system. “The gaps on the basis can cause the walls to crack,” he expressed the potential risks of changing the existing order.
Stark said that crypto currencies did not offer a social benefit and lack the basic economic characteristics. Stark pointed out the speculative nature of crypto currencies and said that these assets can facilitate fraud and criminal activities. For this reason, he argued that the current legal framework should not be exceeded.
The evaluations in the meeting were that the crypto currency market had risks. The SEC officials stated that the existing laws are sufficient to protect the investor and the regulations should be maintained within this framework. Both Stark and Crenshaw said that relaxant changes in the regulation may cause confidence problems in the long term.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
