Op-Ed

SEC’s New Crypto Czar Begins Detangling The Crypto World

Making it more secure or pushing the U.S investors out?

U.S. Securities and Exchange Commission (SEC) has remained popular throughout its early inception to break the bigger monopolistic giants in the finance world. SEC appointed a new Czar for Crypto last month. SEC announced:

 Valerie A. Szczepanik named as Senior Advisor for Digital Assets and Innovation

The new officer has major plans and regulatory goals in mind. While appearing friendly and making sweet statements the fiery plan remains intact behind closed meeting rooms of SEC. Bringing crypto currencies and exchanges under a system of accountability and transparency is their number one goal.

By debuting in this bad cop avatar, she introduced her first strike on the crypto world, rejection of a Bitcoin project last week.

In SEC’s defense, This interference is not only to help secure the economy and investment around digital currency but also the effect of it on the rest of the economy including black market transactions and circulation of dirty money in the nation.

Financial stability and funds security are two sensitive subjects orbiting around crypto currency, the officer has taken notice of. U.S. regulatories take care of power matters very delicately, but the new Czar officer seems blunt according to many. The appointment has led to an ideological divide between softer policies around crypto regulations versus hard lined. Crypto fanatics have insisted on a balanced approach towards regulation, in order to ensure that harsh regulations and extensive reforms do not hamper the growth of the crypto trade in one of the biggest economies in the world (top ten in terms of GDP nominal 2018).

Szczepanik said in her statement:

I am excited to take on this new role in support of the SEC’s efforts to address digital assets and innovation as it carries out its mission to facilitate capital formation, promote fair, orderly, and efficient markets, and protect investors, particularly Main Street investors,

While SEC can not bear to be offensive or too offensive to the fragile crypto ecosystem and must keep open ears and eyes to it, Szczepanik said: “We want people to come talk to us,” In order to win its support and to appear as a friend and not a dominating dictatorial foe to the world of digital currencies. Despite its heavily loaded power to punish, revoke powers and shut down some of the biggest businesses and networks in the name of national security and the people of the republic. She is ”looking to encourage innovation that helps investors and the markets.”

The industry is billions of dollars everyday after all. According to finance analysts: ”crypto world transaction economy (a very rough estimate of) is in the 5 to 16 Trillion Dollars annually.” According to predictions from Feb 2018, Crypto market capitalization is around 1 Trillion Dollar this year.

A great amount of these transactions are processed despite existing regulation framework that make them illegitimate business. In U.S. alone, it was $5.6 Billion in June 2018. SEC will be bringing the number of wrongful transactions down as an immediate goal as a result of the appointment of the new Czar.

SRC: Coin schedule via Bloomberg

Last week, the rising Bitcoin fell after the U.S. Securities and Exchange Commission rejected a request to list an exchange-traded fund run by Tyler and Cameron Winklevoss, showing the regulator remains skeptical that the market for the cryptocurrency is sufficiently free of abuse to bring trading to the masses. Szczepanik helped in making this decision for the SEC.

Bitcoin fell by as much as 3.6 percent after the SEC’s announcement to $7,848.46. That’s ‘almost 60 percent’ below the high of $19,511 reached in December.

Next up in her plate is:

Determining whether certain coins are securities that should be subject to the same tough trading and disclosure rules as stocks. Such SEC announcements have resulted in traders making, or losing, big sums of money within seconds. – Bloomberg

Among other reinforcements, the SEC indicated it remains concerned that crypto markets aren’t mature enough to support an ETF. SEC commissioners opposed the request in a 3-1 vote. What else is in store for the digital asset universe as an offset of the SEC bubbling in U.S. is still a growing and young subject on the shelves.

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