Is the SEC to Blame for Keeping Bitcoin Out of Middle Class Investor Reach? This Economist Thinks So
The libertarian economist John Berlau, who works at the think tank Competitive Enterprise Institute, has published a paper in which he criticizes with the U.S. Securities and Exchange Commission (SEC).
The SEC has been very close to creating a friendly regulatory environment for digital assets to expand in the market.
John Berlau Criticizes SEC’s Policies
The U.S. SEC has been trying to have greater control over the cryptocurrency market and blockchain technology. Although there are several countries that have already taken a very clear stance regarding digital assets, the SEC has been going behind ICOs and other startups that were not compliant with the current financial legislation.
John Berlau published a paper in which he explains that blockchain technology and virtual currencies are transformative and innovative. He then mentions that entrepreneurs were not able to use the technology because the SEC has been cracking down on virtual currencies.
Mr. Berlau says that the approach taken by the SEC could have a negative impact on the market by threatening the functionality of blockchain technology and virtual currencies.
On the matter, he commented:
“Deeming cryptocurrency as a ‘security’ could put cryptocurrency out of the reach of middle-class investors because of the same red tape – both from SEC regulations and from financial regulation laws such as the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010 – that has hindered small investors’ access to stock in early stage grow companies.”
The SEC has been very cautious about implementing regulations related to virtual currencies and blockchain technology. The cryptocurrency space is currently waiting for the approval of the first-ever Bitcoin exchange-traded fund (ETF) by the SEC.
The regulatory agency has been rejecting different proposals because there are some issues that the market must solve.
There are different jurisdictions that have been trying to create a better regulatory framework for digital currencies. Malta and Switzerland are two of these countries that have already implemented better regulations for digital assets.