The commissioner and criticism of vocal cryptography of the Securities and Exchange Commission (SEC) and vocal, Caroline Crenshaw, accused the American regulator of minimizing the risks and of distorting the American market of stablecoin in its newly published directives.
However, many in the cryptography industry consider the decision of the dry as a step in the right direction.
In a press release of April 4, Crenshaw, which is widely known to oppose Bitcoin Spot ETF, said that the Declaction of the SEC on stablecoins contained “legal and factual errors which paint a distorted image of the USD-Stablecoin market which considerably underestimates its risks”.
Crenshaw does not agree, the cryptographic industry applauds
Under the new dry directives, the stablecoins which meet certain criteria are now considered to be “non-security” and are exempt from the declaration of transactions.
Crenshaw challenged the accuracy of the analysis carried out by the SEC when arriving at this decision. It has rejected the dry to reiterate the actions of the transmitters “which stabilize the price supposedly, guarantee the repurchase and otherwise reduce the risk”.
Source: David Sacks
The SEC said that “although briefly, that some USD decays are only available to retail buyers through an intermediary and not directly from the transmitter”.
Crenshaw argued that it was misleading. She said:
“This is the general rule, and not the exception, that these parts are only available the retail public only through intermediaries that sell them on the secondary market, such as crypto trading platforms.”
“More than 90% of USD floors in circulation are distributed in this way,” added Crenshaw.
Meanwhile, many in the cryptography industry have expressed their optimism about the decision.
The founder of Token Metrics, Ian Ballina, said that “it looked like a clear step to focus on what really counts in cryptographic space”.
The cryptographic industry says a positive step, just late
VEMANTE CEO, Tan Tran, said he wanted the SEC to this point three years ago, while Midnight Network’s partnership leaders Ian Kane said that “it looked like progress for people of cryptography trying to respect the rules”.
Crenshaw said that it was “also largely inaccurate” for the dry to reassure users that a transmitter can manage unlimited buyouts simply because its reserves correspond or exceed the value of the offer.
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“Financial health and financial solvency of the issuer cannot be judged by the value of its reserve, which tells us nothing about its passives, its risk of owner financial activities, etc.”, said Crenshaw.
She explained that stablecoins still have risks, especially during market slowdowns.
He only comes for weeks after the stable issuer, Tether would have committed himself with a large accounting firm to audit his reserve of assets and check that his stablecoin USDT is supported at a report 1: 1.
On March 22, Cointelegraph reported that Tether CEO Paolo Ardodino said the audit process would be simpler under American Pro-Crypto President Donald Trump.
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