The US Securities and Exchange Commission (SEC) is seeking to hire more people to focus on digital assets and double the number of employees accused of protecting investors in cryptocurrency markets.
The Cyber Unit SEC, which consists of the Crypto Assets and Cyber team, is expected to hire 20 new people to increase the total power to 50 special positions, as reported by the Cointelegraph on May 3. This development occurs when the regulator tries to keep up with the growing popularity of virtual assets.
The SEC’s decision to expand its cryptocurrency unit has been praised by industry experts, with Dr. Anna Becker, CEO and co-founder of EndoTech, calls it a “welcome development.” She believes that increased security, regulations and complex financial investment solutions will enable digital currencies to become more accepted.
Regarding cryptocurrencies that work with regulators, Becker told the Cointelegraph that “When we work together to set and maintain the rules, we will create a market that serves the public and gives them the opportunity to make money with the right protection.” She added:
“This market is still in its infancy. When it comes to cryptocurrencies, we need the same types of safeguards that have evolved in stock markets and other public markets over the years. This will allow encryption to evolve into a powerful asset class with more sophisticated financial instruments.”
Jay Fraser, head of policy at BSTX, believes that cryptocurrencies should communicate with regulators. He pointed out that the severity of recent price declines was partly due to the lack of depth and the number of active participants in the cryptocurrency markets. According to Fraser, a stable and predictable regulatory environment could potentially encourage more professionals to participate in reducing price volatility.
Andrea Gordon, a compliance specialist and consultant at Eversheds Sutherland, emphasized the importance of cryptocurrencies working with regulators. She told the Cointelegraph that in an ideal world, companies would be able to have open discussions with the authorities about certain offers because the regular climate for cryptocurrency is always changing.
According to Gordon, some companies may not want to communicate with the authorities because the procedure could be costly and time consuming (resulting in a delay in product promotion) or possibly lead to enforcement action. She cited Coinbase’s experience with the SEC as a precautionary measure. She said:
“In September 2021, Coinbase’s lawyer announced in a blog post that after Coinbase had been in contact with the SEC about the product for almost six months, the SEC threatened to sue if Coinbase launched Lend.
On how both parties work together to build a mutual relationship, she said that education is crucial in the world of cryptocurrency. The sector should look for ways to educate regulators at the same time as encouraging a regulatory approach that makes sense.
“Regulators often issue proposed rules for public comment. These are great opportunities for the industry to weigh and evaluate and explain the potential impact or (perhaps unforeseen) consequences of regulation.”
Anndy Lian, thinking leader and chief digital adviser to the Mongolian Confederation of Trade Unions, said watchdogs could adequately manage the cryptocurrency sector. Lian argued that most regulators are trying to apply old rules and laws to the cryptocurrency industry to get back on track and that it has “left a gripping game where they need to be constantly changing.”
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Pratik Gauri, founder and CEO of 5ire, discussed the current situation between cryptocurrencies and regulators. According to him, “there is still a lot of mistrust on both sides”. He told the Cointelegraph that “cryptocurrencies have been demonized by regulators” who work for the bank lobby or other organized interests and regulators have described all cryptocurrencies as illegal activities. However, he added that recent innovations and fluctuations in the cryptocurrency have led two parties to reconsider their position.
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