Former acting Comptroller of the Currency Brian Brooks said the U.S. SEC needs to clear the confusion around cryptocurrencies. He said the regulator had in the recent times sued various people without informing the rules are. Stating that the practice is ‘not a good thing’, Brooks said a lack of US SEC crypto clarity would leave many investors nervous about the ecosystem.
Brooks opined that the U.S. Securities and Exchange Commission took action on people without clearly stating what the rules are. Speaking to CNBC about crypto regulation, he said regulators need to get serious about telling what projects are appropriate and good. Otherwise, a lot of people in the crypto space are going to get nervous, he explained. He differentiated between regulating the crypto assets and the need for suing people in the industry, stressing on the need for clarity on US SEC crypto stance.
“Firstly, regulation does not mean suing people. The approach of the SEC in the last couple of years has been to not tell anyone what the rules are in advance but to sue people after they launched a project, started a company, listed a token.”
The former official said the lawmakers and regulators needed to inform people about which crypto projects are appropriate. “Congress and the regulators need to get serious about telling people what is the speed limit on the crypto highway. And they need to tell what projects are appropriate and good.”
Recently, SEC chairman Gary Gensler in his op-ed piece said there was no reason to give any special status to digital assets. “They should be treated like capital markets.” Gensler noted how investors have been at the mercy of crypto lending platforms going bankrupt this year. Recent market events show why it is critical that crypto firms comply with securities laws, he added. Investors have no choice but to knock at the doors of the court, he explained.
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