The SEC, better known as the Securities and Exchange Commission has been a prominent part of the news as of late. This is because a large number of people have been facing a variety of issues when making crypto related investments. Gary Gensler, who happens to be the chair of the SEC has been urging a variety of cryto related projects that have securities for making sure they register.
For those who are wondering, the commission wants these projects to make registrations with their respective regulatory bodies for making sure investors remain protected. Gary made a testimonial speech at a Senate committee conducted on urban, housing and various banking affairs earlier this day.
In this testimony, he stated that the Securities and Exchange Commission was closely working with commodities futures trading commission to protect investors in the often volatile crypto market. If you have been following the crypto space for a while, you will be well aware of the fact that the crypto bubble can be incredibly unpredictable. This is abundantly clear from the amount of hacks and frauds that have taken place over the years.
Needless to say, there has been a fair bit of volatility and unpredictability involved, which is why the SEC has been trying to take charge. The higher ups present at the securities and exchange commission have also been planning to create a detailed framework. However, they believe that this will only be possible if they and the Federal Reserve collaborate.
Some experts in the crypto world also think that collaborating with the department of treasury could prove to be incredibly helpful for creating the framework being talked extensively about. The main thing that has been discussed time and time again in most meetings is the SECs desire to create a dialogue with various crypto projects and platforms.
Believe it or not, there are loads and loads of platforms that have hundreds or even thousands of crypto based tokens. While there is no denying that the legal status of every token depends on a variety of circumstances and facts, there is a very low chance that any platform would have zero security.
Gensler also stated that technology like crypto could be a massive catalyst for a change, especially as far as the financial sector is concerned. However, this would only be possible if the projects and exchanges followed the framework that the Securities and Exchange Commission is trying to propose.
Of course, all of this would take a great deal of time to come to fruition, but with regular perseverance and dialogue, the crypto industry would change for the better.
By AevanStock – shutterstock.com