The Securities and Exchange Commission (sec) maintained its anti-crypto position and increased oversight over crypto companies decreased their growth and listing on the public list. President sec gary gensler is looking to accelerate the project of "better enforcement regulation" to increase its competence in the crypto market. It will also allow the latter to have greater control over cryptography companies and exchanges.
Why does the President want the "best regulatory enforcement" rule?
The sec proposed a "regulation of the best enforcement" under the law on securities and stock exchanges of 1934 (law on stock exchanges) to improve the existing regulatory framework. Introduce a "best performance" standard for dealers, government securities dealers, government securities dealers and municipal securities dealers to increase investor protection.
On January 25th, Gary Gensler urged people to provide feedback on the proposal until March 31st to immediately introduce this mandatory rule for brokers. If adopted, the rule will implement policies and procedures when negotiating securities such as stocks, fixed income, options, crypto security tokens or other securities.
"If passed, our best ex rule would help make sure brokers have policies.”
However, the rule will increase the competence of the SEC on cryptocurrencies, which has not yet been decided by the United States Congress. Earlier, the SEC defined cryptocurrency exchanges as “brokers” to obtain broker-dealer registration pursuant to Section 15 of the Securities Exchange Act of 1934. The movement has been criticised by both the crypto community.
While regulation is critical to the growth of the crypto market, forced regulation and increased oversight by the industry have an impact on growth. The rule will enable the SEC to increase its control of crypto firms.
SEC Stops Crypto Firms To Go Public
Several crypto companies including Bullish Global, Circle Internet Financial, and eToro have failed to receive regulatory approval from the SEC to go public. Other listed companies such as Mike Novogratz's digital galaxy and the currency base have been under consideration since the listing. The SEC got tougher after the FTX collapsed.
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- cryptocurrency exchange
- cryptocurrency regulation
- Gary Gensler
- Securities and Exchange Commission