Industry experts were pleased with the SEC’s decision, which was to expand its section on digital assets. This is not surprising considering the increasing interest in cryptocurrency.
The United States Securities and Exchange Commission (SEC), is looking to hire more people to concentrate on digital assets. This will almost double the number of staff responsible for protecting investors in crypto markets.
According to Cointelegraph, the Cyber Unit of the SEC, which includes the Crypto Assets and Cyber teams, will hire 20 more people in order to increase its overall force to 50 positions. The regulatory body is trying to keep up with virtual asset popularity.
Industry experts have praised the SEC’s decision in expanding its cryptocurrency unit. Dr. Anna Becker (CEO and cofounder of EndoTech) called it “a welcome step forward.” She believes that digital currencies will become more popular due to improved security, regulation, and complex financial investment options.
Becker stated that crypto firms should work together with regulators to create a market that is both open to the public and allows them to make money. She also said:
This market is still very young. We need the same safeguards that we have used in equity and other mainstream markets to protect crypto trading. These will allow crypto to become a stronger asset class and provide more sophisticated financial tools.
Jay Fraser, BSTX’s head of strategy, believes that cryptocurrency companies should cooperate with regulators. According to Fraser, the recent price drops could be partially due to the lack of depth in the market and the large number of participants. Fraser believes that a predictable and consistent regulatory environment could encourage institutional traders to take part in dampening price swings.
Eversheds Sutherland’s compliance expert Andrea Gordon stressed the importance for crypto businesses to work with regulators. Cointelegraph was told by Gordon that it would be ideal for firms to have open communication with authorities about specific offerings, as the regulatory environment for cryptocurrency is constantly changing.
Gordon stated that some companies may not wish to deal with authorities as the process can be expensive and time-consuming, causing delays in product launches or even an enforcement action. She used Coinbase’s experience dealing with the SEC regarding its Lend service to illustrate her point. She stated:
“In September 2021 Coinbase’s chief lawyer announced in a blog posting that the SEC had threatened to sue Coinbase if it launched Lend after Coinbase had been engaged with them about the product for almost six months.”
She spoke out about how they can work together to create a mutually-beneficial relationship. It is important that the sector seeks ways to educate regulators and encourage a rational regulatory approach.
“Regulators frequently issue proposed rules for public comments. This is a great opportunity for the industry to comment on the proposed rules and explain any unanticipated consequences.
Anndy Lian is a thought leader and chief advisor for the Mongolian Productivity Organization. She stated that it was possible for watchdogs to regulate the cryptocurrency industry adequately. Lian stated that many regulatory bodies have tried to use outdated laws and rules to the cryptocurrency sector to catch up. This has led to a “catching up game” where they must be constantly changing.
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Pratik Gauri (founder and CEO of 5ire) addressed the current situation between regulators and crypto businesses. He stated that “there is still great distrust on both sides.” Cointelegraph was told by him that crypto people demonize regulators as being part of the banking lobby or other organized interest groups, and that all crypto operations are illegal. He said that both sides have had to reconsider their position due to recent innovation and volatility in crypto space.