Fintech Staff Writer
A viewpoint was shared by CEO and Founding Partner at Nickel Digital- Anatoly Crachilov, on SEC regulation of the digital asset sector. One of the great ironies of this latest action is that the SEC’s claim that “time-tested securities laws promote trust in the market” whilst they have a habit of glacial-paced decision-making and only act after the horse has bolted. Their own press release acknowledges that Genesis and Gemini agreed on the program in Dec 2020.
Crypto Twitter had an unwelcoming reaction to SEC’s recent ill-timed action: “It’s like running a stop
sign that wasn’t there and giving someone a ticket. Please give clear guidelines that bolster positive
growth”.
If the SEC’s real concern was investor protection, it would exhibit a proactive approach. Yet, in
virtually all dealings with the industry, the SEC has been reactive, denying clarity during critical
decision-making and bringing delayed enforcement when the investor damage has already been
done. Gary Gensler and the SEC compounded recent woes of contagion-affected Genesis and Gemini
customers by charging both companies with unlicensed securities offerings through the Gemini Earn
program. The problem with this latest episode is that it comes across more as a PR performance than
an act of investor protection.
If the SEC truly aims to protect investors, it needs to shape the design of nascent industries rather
than hinder their progress. It also must ensure that “time-tested” laws reflect the changing realities
of the Information Age.
The SEC’s gold standard remains the Howey Test dating back to anachronistic 1946 but that relates
to a period where the complexity of interactions within the economy was closer to the 19th-century
slow-paced world than the 21st-century burgeoning information reality.
Latest Fintech News: Bankers Helping Bankers Names PULSE Exclusive Debit Partner
[To share your insights with us, please write to sghosh@martechseries.com]
