US losing edge in crypto due to SEC’s ‘scorched earth’ tactics, Robinhood exec says
US losing edge in crypto as a result of SEC’s ‘scorched earth’ methods, Robinhood exec says US losing edge in crypto as a result of SEC’s ‘scorched earth’ methods, Robinhood exec says
Gallagher said the SEC would possibly perhaps additionally serene leverage its new authority to present some semblance of management for the crypto industry.
Cowl art work/illustration by strategy of CryptoSlate. Image contains mixed protest material that would possibly perhaps additionally encompass AI-generated protest material.
Robinhood’s Chief Merely Officer Daniel Gallagher criticized the US Securities and Change Commission’s (SEC) methodology to crypto law in written testimony submitted for a Sept. 18 hearing sooner than the Dwelling Financial Products and services Subcommittee on Digital Assets.
Gallagher detailed Robinhood’s efforts to conform with SEC guidelines, citing over a dozen meetings and calls over 18 months. Nonetheless, despite these efforts, the corporate received a Wells gape from the SEC’s Enforcement Division in Can even merely.
He identified that the SEC group were usually unresponsive to Robinhood’s requests for guidance on transferring ahead with its registration proposal.
‘Scorched earth methodology’
Gallagher labeled the SEC’s technique a “scorched earth” methodology that negatively impacts US crypto traders.
He argued that the lack of positive guidance on which digital asset transactions qualify as investment contracts stays a classic space. This uncertainty has resulted in a pair of lawsuits by the SEC towards crypto corporations, extra hampering industry growth.
Gallagher added that “law by enforcement” harms American customers in the hunt for larger catch admission to to digital sources. It additionally stifles innovation in blockchain and erodes the US’s competitive edge in global digital asset markets.
He contrasted the US with Europe, the place the Markets in Crypto-Assets (MiCA) law affords a unified framework for crypto markets, enabling innovation to flourish foreign.
Subsequent steps for SEC
Gallagher suggested that the SEC would possibly perhaps additionally employ its new authority below Allotment 36 of the Securities Change Act of 1934 to create a framework for registering and overseeing platforms that facilitate shopping and selling in digital sources deemed investment contracts.
He illustrious this rulemaking would possibly perhaps additionally take care of key issues equivalent to registration, user protections, custody requirements, and transaction reporting. These measures, he added, would possibly perhaps additionally believe mitigated one of the hurt resulted in by the FTX give scheme in 2022.
Congress roles
Gallagher emphasized the need for Congress to construct a positive, total regulatory framework for digital sources.
He argued that handiest Congress can present the lengthy-term regulatory clarity desired to guarantee token issuers, exchanges, and diversified market individuals can characteristic with out alarm of constant enforcement actions.
Such clarity, per Gallagher, is mandatory for affirming the US’s management in to blame blockchain innovation and properly-regulated digital asset markets.
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Oluwapelumi values Bitcoin's doable. He imparts insights on a spread of issues luxuriate in DeFi, hacks, mining and culture, underlining transformative vitality.
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Robinhood
Robinhood is an American financial services company headquartered in Menlo Park, California that became based in April 2013 by Vladimir Tenev and Baiju Bhatt.
FTX
FTX is a defunct cryptocurrency trade, currently in financial extinguish proceedings, that became based by Sam Bankman-Fried and Zixiao “Gary” Wang in Can even merely 2019.
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