Opinion: SEC's approach to cryptocurrency infringes upon the interests of middle-class investors

[KYCbench]

  

Well-known American economist John Berlau criticized the position taken by the US Securities and Exchange Commission (SEC) with regard to cryptocurrencies and digital tokens, saying that its approach to this industry leaves little to many middle-class investors.

John Berlau outlined his thoughts in a work published on April 11 under the title “Cryptocurrency and the SEC’s Limitless Power Grab: Why Not Provided?”.

In it, he states that by his actions, the Commission hinders the development of innovations in the cryptocurrency industry, because the constant obstacles and barriers that the SEC puts before companies and entrepreneurs do not give them enough space for experimentation and the full use of technology.

Criticized Howe’s test, used by the SEC to determine whether an asset falls into the category of securities, Berlau said that if cryptocurrencies fall under this definition, it can threaten the functionality of the blockchain technology and significantly reduce the number of possible scenarios for its application.

“Once in the category of securities, cryptocurrencies become inaccessible to middle class investors. This is all the same bureaucratic red tape, which is a consequence of the SEC regulatory rules and other financial rules (the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act of 2010). All of them limit the access of small investors to companies in the early stages of growth, ”the economist writes.

A fierce critic of the policy pursued by the United States Revenue Service (IRS), John Berlau, is Director of the Center for Investors and Entrepreneurs at the Competitive Enterprise Institute in Washington. This organization is known for its libertarian views and the protection of the interests of the free market.

Earlier, in March, the SEC published a new guide for issuers of cryptocurrency tokens, which can be considered unofficial instructions for determining whether the issued assets fall into the category of securities. The document has been drafted over the past six months by the Strategic Hub for Innovation and Financial Technologies of the Ministry (FinHub).

KYCbench, your reliable KYC partner
www.kycbench.com
GDPR & ISO/IEC 27001:2013 compliant

Please contact KYCbench today, the most reliable ID verification processor at: [email protected]

Join our Telegram Groups:
KYCBench Announcement
KYCBench Community