As the whole crypto market is worried about the certainties and the future of the cryptocurrencies after the so-called crypto winter, The U.S. Securities and Exchange Commission’s Valerie Szczepanik said that he was very positive about the sector in recent future as regulation would boost its market.
“I do think if we hope to smell the crypto spring in the air, it will take people walking with the regulators,” Szczepanik, the SEC’s senior advisor for digital assets, said. “But I do think the spring is going to come.”
There was a Question and Answer session with attorney Daniel Kahan of Morrison & Foerster LLP. In that session, he emphasized how the regulatory approach at the SEC is designed to let innovation flourish though it will only be possible if the company will not give complete clear guidelines for new kinds of businesses.
“The lack of bright-line rules allows regulators to be more flexible,” she said.
She was also asked whether the entrepreneurs can or cannot run the business efficiently if the businesses conform to regulatory compliance. She replied the principles-based approach lets more opportunities to arise from new technology.
She told at the conference, “I think if you were to propose a new regime of regulations in a precipitous way without really studying it, you might end up steering the technology one way or another.”
Szczepanik also stated that in present times there are numerous arrangements allowing these tokens to maintain a stable price with respect to other assets. She hinted that stable coins generally create two assets, one maintains a fixed price and the other fluctuates with an aim to help the first token’s price stay fixed. With regard to that particular category of project, she said, “You might be getting into the land of security.”
“Folks like to put labels on things,” Szczepanik said of stablecoins, “but we’ll always look behind the label to see exactly what’s happening. We’ll give it the label it deserves under the law.”
Penalties-
There were multiple questions on the topic of SEC’s FinHub, which would be the hub for the companies to go in and talk with staff regarding approaches. Kahan had offered a rule which reads, “It’s always better to find your regulators than to let your regulators find you.”
Szczepanik said that talks and negotiations with the SEC would yield better outcomes for companies. She also mentioned the case of Gladius, the regulatory action against the cybersecurity company defending against distributed denial of service (DDoS) attacks.
SEC declared that no penalty or fine was imposed as the company self-reported and communicated with regulators during the investigation. She said stating the example of Gladius; the companies would work efficiently if their actions are backed by the regulator.
She also acknowledged the possibility of some companies going offshore in search of more lenient regulatory regimes. But as per her, the real growth opportunity lies in abiding the U.S. regulatory norms. “There are benefits to doing it the right way. And when they do that they will be the gold standard,” she said.
