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SEC Commissioners criticized updated regulatory agenda

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The U.S. Securities and Exchange Commission (SEC) Commissioners Hester Peirce and Elad Roisman said they were “disappointed” with the content of the regulatory program of department Chairman Gary Gensler. Officials were criticized for the lack of explanations on digital assets.

Thus, Pierce and Roisman noted that the document did not include items aimed at helping companies raise capital and strengthening consumer protection.

“Instead, the agenda is replete with plans to redo the recently completed rules, add new regulatory obligations […] The program also does not contribute to the advancement of our mission to protect investors, as it does not clarify the (regulation) of digital assets,” the commissioners stressed.

The proposed regulatory framework is deferring amendments

Moreover, they pointed to the SEC’s unwillingness to take on “the difficult task of developing rules that allow investors and regulated organizations to interact with digital assets.”

“Such silence emboldens fraudsters and hinders conscientious participants who want to comply with the law,” the statement said.

In addition, the pair went on to say that the proposed regulatory framework is deferring amendments; related to audit trails of information surrounding trades. Presumably, including cryptocurrency and the people behind the transactions. Deferring action on these protections, according to Peirce and Roisman, “leaves investors’ data vulnerable.”

Legal framework is necessary for digital assets to survive

Earlier, Gensler called on the US Congress to clarify the regulatory framework of the crypto industry. In his opinion, the legal framework is necessary for digital assets to survive. In the summer, the SEC chairman warned of increased regulation of stablecoins and decentralized finance (DeFi).

Recall that in October, Gensler announced that the Commission had no plans to ban cryptocurrencies, referring to the fact that this is the prerogative of Congress. Furthermore, he commented on a question from a member of the House of Representatives Ted Budd. It was about the possibility of following China’s path with regard to digital assets.

Previously, the official confirmed his intention to take tougher measures to protect investors. And called on cryptocurrency exchanges to work with the SEC. “The public expects some profit based on the efforts of some entrepreneur; or a group of programmers who received money from the public,” Gensler said.

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