Last updated on January 20th, 2022 at 04:41 pm
The SEC Commissioner, Caroline Crenshaw, has stated that in the first issue of the international journal of blockchain law that it was high time the blockchain space cooperated with the US SEC, and worked to reduce pseudonymity and increase transparency.
In the journal, she stated that,
“I am concerned that this lack of transparency contributes to a two tier market in which professional investors and insiders reap outsized returns while retail investors take more risks, get worse pricing, and are less likely to succeed over time.”
Crenshaw believes that some parties have unfair advantages over others, and use that to fleece them. She added an example of this. “The SEC recently settled an enforcement action with a purported DeFi platform and its individual promoters. The SEC alleged they failed to register their offering, which raised $30 million, and misled their investors while improperly spending investor money on themselves.”
Crenshaw buttressed that the US market was a clear example of why regulation and transparency were necessary. In her statement, “well-regulated markets tend to flourish, and I think our U.S. capital markets are prime examples. Because of their reliability and shared adherence to minimum standards of disclosure and conduct, our markets are the destination of choice for investors and entities seeking to raise capital. Our securities laws do not merely serve to impose obligations or burdens, they provide a critical market good. They help address the problems noted above, among others, and our markets function better as a result. But, in the brave new DeFi world, to date, there has not been broad adoption of regulatory frameworks that deliver important protections in other markets.”
She went on to state the duty of the US SEC commissioner in the crypto space, “As an SEC Commissioner I have a duty to help ensure that market activity, whether new or old, operates fairly, and offers all investors a level playing field.”
Crenshaw added that the US SEC will continue to regulate the space.
