SEC lobbies to regulate crypto investment platforms

Gary GenslerAnd Chairman of the Securities and Exchange Commission (SEC) from the United States that cryptocurrency trading and lending platforms Those who promise returns to investors are wrong if they think they can avoid regulation by the body they represent.

Investor Protection

Within the framework of the conference The future of asset management North America Financial TimesAnd Gensler Highlight it Cryptocurrency investors They should be entitled to protection from fraud and manipulation such as bank depositors, purchasers of insurance policies or mutual funds.

“This cryptocurrency space is now so large that, without the protection of the investor from the laws of banks, insurance [y] of values [y] Watching the market, I think someone is going to get hurt. It is possible that a lot of people will be infected.”

to intervene Gensler happened after that Coinbase had to cancel its plans to offer a digital asset loan product, which initially promised a 4% return, after facing resistance from the Securities and Exchange Commission.

Coinbase has argued that its Lend product cannot be considered a guarantee, according to federal law. The SEC disputed these statements and threatened to sue the company if it fired Lend.

The SEC’s position is based on a Supreme Court ruling, called “Howey Evidence”. It asserts that an investment contract is subject to federal securities law if a person “invests his money in a joint venture and is led to expect benefits only from the efforts of a promoter or a third party.”

In recent months, Gensler has been looking at crypto platforms to contact the SEC to discuss whether they should register with the authority. On Wednesday, he noted that some companies had said “public things about some of those conversations.”

According to the official, “There will be times when people will come and say to them, ‘Sign up.’ It doesn’t mean that everyone will come and say, ‘Please, can you tell us we’re not valuable.’” ”

At the same time confirmed Those encryption platforms Accepting money from investors for returns “They should look at the securities laws carefully and speak with the agency to register.” He added, “Many of them should [registrarse] Now, or even in the past.”

first data

Gensler spoke at the Financial Times conference after presiding over his first public meeting of the Securities and Exchange Commission as chairman. During the meeting, the committee voted in favor of a proposal to expand proxy voting disclosure requirements for investment managers, including mutual funds and listed funds.

Gary Gensler, President of the Supreme Education Council

The Securities and Exchange Commission stated that the proposed amendments, which include standardizing the disclosure of proxy votes and providing data in a machine-readable form, It would help facilitate investor analysis. If these measures are finally approved, they will modernize the detection system that was put in place nearly two decades ago.

The Securities and Exchange Commission also voted in favor of a proposal for institutional investment managers to disclose voting on executive compensation, known as “say on salary,” a measure that is part of the agency’s implementation of the Dodd-Frank Act. The Securities and Exchange Commission’s recommendations will be open for public comment for 60 days after they are published in the Federal Register, according to the website cronista.com.