A senior office holder at the United States Securities regulator has made a noteworthy statement concerning securities laws on May 13 at the Consensus 2019, saying that securities laws are
“written to be dynamic.”
The Chief of the office of capital markets trends at the U.S. Securities and Exchange Commission (SEC), Amy Starr, revealed that the regulator desires a transparent working relationship with blockchain-related and local crypto businesses so as to learn how best securities laws may be applied to them.
High-Level Cooperation Between The SEC And The Crypto Community
In a panel segment titled “Perspectives on SEC engagement concerning digital assets,” Starr disclosed that the relationship between the SEC and the cryptocurrency industry is one of high-level cooperation, using the peer-to-peer meetings conducted by the SEC’s “Crypto Czar” Valerie Szczepanik as an example.
She stressed the need for more engagement with the regulator, stating that only that will bring about a change in securities laws for the crypto markets.
“The more interaction, and willingness that people want to engage with us, the happier we are because we want this to work. We want there to be innovation in these markets. We want there to be change,”
Crypto Users Should Police Themselves, Says “Crypto Mom”
In the course of the panel, Starr also made mention of the recent no-action letter to TurnKey Jet, a crypto startup, which gave the company the right to issue TKJ tokens to be used in the payment of private jet charter, since the tokens couldn't be referred to as securities. She noted that the ruling of the SEC fell “on one end of the spectrum” of closely related cases in the aspects of the decision and how fast it was arrived at.
After the panel segment, SEC Commissioner Hester “Crypto Mom” Peirce gave a speech on the subject of the future of cryptocurrencies. The speech called for crypto actors to institute internal regulation in the industry, claiming that “testing each other is really healthy.”
Acknowledging the might of the SEC, she admitted that the regulator could single-handedly crackdown on any malpractice noticed in the market, but if crypto enthusiasts should “police one another,” there won't be any need for government intervention.
The SEC Tagged An Obstacle Against Crypto Market Growth
In the past, the image of the SEC has been one of a regulatory blockade with the mission of hindering the growth of the crypto markets. Last January, the CEO, and co-founder of Circle, a crypto finance company backed by Goldman Sachs, claimed that the SEC had no idea on how to define the various crypto assets.
Not long ago, Valerie Szczepanik, the U.S. SEC Advisor for Digital Assets and Innovation, opined that platforms who wish to list initial exchange offering tokens for a fee could run into a problem of regulation.