No crypto project has registered with the SEC and ‘lived to tell the tale’ — House committee hearing
American securities laws are not flexible enough to take into account digital assets, as evidenced by the parade of cryptocurrency companies that have tried and have failed to enter the good graces of Securities and Exchange Commission (SEC), said April 9.
The audience, entitled American innovation and the future of digital assets aligning American laws on securities for the digital age, Presented Seira, Wilmerhale Tiffany J. Smith’s partner, the legal director of Polygon Jake Werrett and Alexandra Thorn, principal director of the Center for American Progress.
“It is clear that the current regulatory framework for securities is not a viable option to regulate the crypto. It fails to achieve its declared political objectives,” said Seira in his opening remarks. “”[T]The idea that cryptographic projects can enter and register with the SEC is clearly false. »»
The Special Council of Cooley LLP Rodrigo Seira is aimed at the Committee on April 9. Source: Committee of the Chamber of Financial Services
Seira has recognized that cryptographic promoters who increase capital for a new company should be subject to federal securities.
“In practice, however, practically no cryptographic projects has managed to record their tokens under federal securities laws and lived to tell the story,” he said, adding:
Projects that tried to comply [the] The current regulatory requirements of the SEC have spent significant resources and efforts to fail or survive in a state of regulatory uncertainty. In addition, recording is not a simple unique process. The registration of a token in the same way that a shares triggers the obligation to operate as a public declaration company […]. “”
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Straighten the ship
By presenting the witnesses, the representative Bryan Steil, who directs the subcommittee of digital assets, financial technology and artificial intelligence, recognized the regulatory roadblocks, which, according to him, were set up by the previous administration.
The Bryan Steil Congress member approached the hearing on April 9. Source: Committee of the Chamber of Financial Services
Under President Donald Trump, legislators are trying to hand over the ship by adopting judicious legislation, said Steil.
One of the first steps occurred last week when the Chamber’s financial services committee advanced the stable law, which is designed to regulate the payment stages linked to the US dollar and other fiduciary currencies.
Source: GOP financial services
A month earlier, the Senatoric Banking Committee has advanced the Act on Engineering, which aims to regulate stablecoin issuers by establishing reserve requirements and demanding full compliance with anti-flange.
The next step is to “advance the second half of this program: the complete legislation of the structure of the digital asset market,” said Steil.
The RO Khanna representative told a conference on digital assets last month that a market structure bill would cross the finish line this year.
The aim of such legislation is to establish a clear regulatory framework for digital assets, including their legal categories and the jurisdiction of application of agencies such as the SEC and the Commodity Futures Trading Commission.
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