US Securities and Exchange Commission (SEC) commissioner Caroline Crenshaw said that the “safe harbor” proposal would exacerbate the problems that occurred during the initial coin offering (ICO) boom in 2017 and 2018.
Crenshaw made the above remarks at the annual “SEC Speaks” meeting this month, and posted his speech on the US SEC website on October 12. This committee member believes that if safe harbor regulations were introduced at that time, the impact on investors and the market would be much greater:
“I think the outcome may be worse for investors and the market. ICOs and other digital asset offerings raised billions of dollars from investors, but most of them failed to deliver on their promises. Investors suffered losses.”
She added: “I think it’s no coincidence that these problematic issuances existed as early as years of downturn in the value of digital assets (sometimes referred to as the crypto winter) and have continued.”
The safe harbor proposal was made by Hester Peirce, a U.S. SEC commissioner who is friendly to cryptocurrencies. The proposal seeks to give web developers a three-year grace period to build a decentralized network without worrying about the legal actions of the US SEC, but it has not yet received the support of the majority of other committee members.
“Crypto Mom” Peirce proposed a revised version in March of this year. According to a report by Cointelegraph on October 5, Representative Patrick McHenry of North Carolina also proposed a three-year safe harbor proposal in the draft of the “Digital Token Clarity Act of 2021”.
Crenshaw believes that the safe harbor proposal will not only push the crypto industry toward compliance, but will put investors’ capital at further risk, because crypto tokens will be considered outside the jurisdiction of the US SEC within “a few years”.
She said: “I am also worried that the deregulation of regulatory requirements for markets that are prone to investor protection failures. Due to anonymity, disintermediation, and market manipulation, investors have limited remedial options and cannot maintain investor confidence or bring lasting benefits. broadly used.”
Crenshaw called for the construction of a “bridge” for token issuers and other cryptocurrency companies to work with the U.S. SEC to outline regulatory compliance plans or discuss specific exemptions when deemed “appropriate”:
“I believe that if market participants take the initiative to assume compliance responsibilities, we can build a bridge, promote innovation, while maintaining market integrity, and provide the necessary investor protection for the growth of these new markets.”
She added: “If you may fall under our jurisdiction, please work with us to describe your compliance program or explain why certain exemptions are appropriate.”
Crenshaw’s remarks also echoed the views of US SEC Chairman Gary Gensler. Gensler often calls for crypto companies to cooperate with the US SEC and register with the regulatory agency.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/us-sec-commissioner-safe-harbor-act-will-make-the-ico-problem-worse%e2%80%8b/
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