Cryptocurrency

Gary

Cryptocurrency investment firm Paradigm argues that the present SEC disclosure framework is ill-suited for the crypto markets.



&#8220;Unsurprisingly, without significant changes to the SEC&#8217;s current disclosure regime, the SEC is unable to regulate crypto asset markets effectively,&#8221; stated Paradigm.



According to the firm, the distinction between traditional securities regulated by the SEC and cryptocurrency assets is rooted in technology. Paradigm highlights the stark contrast between stocks and bonds, and cryptocurrencies. While stock or bond owners hold a stake in the legal entity that initially issued the share or bond, crypto assets are not tied to the value of the issuer, as they exist independently.



<h2 id="paradigm-8217-s-proposed-framework-and-sec-8217-s-ongoing-crypto-controversies">Paradigm&#8217;s proposed framework and SEC&#8217;s ongoing crypto controversies</h2>



Paradigm proposed a framework that would more effectively regulate crypto markets, including recognizing that &#8220;crypto assets operate, trade, and settle on a very different technology &#8216;stack&#8217; than that used for the trading of securities.&#8221; Additionally, the framework should acknowledge that cryptocurrencies can accrue value in ways distinct from traditional securities.



Paradigm <a href="https://blockworks.co/news/paradigm-sec-temporary-securities" rel="nofollow noopener" target="_blank">published</a> a brief on tokens-as-securities in March in response to the SEC&#8217;s claim that former Coinbase product manager Ishan Wahi engaged in insider trading with crypto assets considered securities. Both Wahi and Coinbase refuted the SEC&#8217;s allegations.



Earlier this month, the SEC charged crypto exchange Bittrex for listing six tokens classified as securities under the Agency&#8217;s jurisdiction, specifically targeting DASH, ALGO, OMG, TKN, NGC, and IHT. However, when questioned by Patrick McHenry, chair of the Financial Services Committee, SEC Chair Gary Gensler could not definitively state whether ether is a commodity or security.



Former SEC Chair Jay Clayton told CNBC that &#8220;things can go from being a security to not a security&#8221; when asked the same question posed to Gensler.



Paradigm emphasizes, &#8220;In addition to clarifying whether (or when) crypto assets are securities, the SEC must clarify what type of securities they are.&#8221;

Crypto investment firm Paradigm calls for a revamp in SEC’s approach to crypto regulation

目錄

Cryptopolitan_News

在 2023年4月21日發表的其他文章

Tamadoge (TAMA) Price Prediction

Bitcoin Price Analysis: BTC Touches $28,233 as Bearish Drive Continues

Crypto Market Titans Cardano (ADA) and Fantom (FTM) Staggered by TMS Network (TMSN)

Coinlive and Echooo host The Great Web3er afterparty in Hong Kong- attracts global crypto execs

imToken Wallet Address Top Ad on Chinese Google Search Found to be a Phishing Site

George Coxon will be speaking at the United Nations Summer Academy on June 27th, 2023!

訂閱免費電子報，每天收取加密貨幣最新動態！