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SEC top official asks crypto users to either go “complaince” or “different tack”

The newly appointed U.S. SEC top official Valerie Szczepanik hopes cooperation from crypto enthusiasts, else stringent measures awaiting. The significant financial companies are thrashed with legal cases under the active initiative of U.S. Securities and Exchange Commission. This newly appointed SEC officer has undertaken the responsibility to supervise the emerging crypto industry.

However, the common trend suggests that the crypto enthusiasts find it difficult to associate with the market police of SEC. This is intimidation present among the people belonging to the crypto industrial domain is due to the investigative activities and outcomes.


According to the 51 year old SEC officer, Szczepanik, "We want people to come talk to us." She has further stated, "When I’m in meetings with folks, I want them to see me as someone who’s interested in communication and back and forth, and looking to encourage innovation that helps investors and the markets."

The seriousness of the challenging situations created by the digital currencies reflects the concern of SEC. In June, 2018 the Szczepanik is designated as the senior adviser of the domain of digital assets. Focussing on this new SEC officer, technology has always been a matter of interest for her. As an officer, she started invigilating cryptocurrencies almost six years back.


However, the top most levels of this regulatory body could detect the unwilling attitude among the crypto supporters in this industry. Hester Pierce is the Republican Commissioner who has given an interview stating the underlying reason for people to maintain distance from SEC. She commented that for these crypto enthusiasts the event, “meant going through enforcement.”

William Hinman has been an ex- lawyer at Silicon Valley who operates the department of corporation finance of SEC. He is of the opinion that the joining of Szczepanik in SEC may bring about a transformation in the system. According to Hinman, "Early days in this space, a lot of the activity just didn’t come into any other division other than enforcement." Hinman has further commented, "Folks weren’t coming to us and saying, ’Oh, I have a security, let me register it with corporation finance."


Such a comment led to an upsurge of nearly 12% in the valuation of ethereum [ETH]. On the other hand, Goldman Sachs a prominent investment banking institution with distinct international presence based in New York is gearing up for trading business of Bitcoins [BTC]. The intervention by the regulators into the dark, undiscovered crypto industry can drag it out and expose to light. This would facilitate better understanding of the mechanism prevalent in the functioning of the industry.

However, Szczepanik commented, “What we’re hoping is people will want to come into compliance.” She has cautioned that if the crypto market retains its opaque nature then strict measures would be directed towards it. She said, “If there’s no effort to do that, if instead folks choose to ignore applicable laws, we might take a different tack.”

https://bcfocus.com/news/sec-top-official-asks-crypto-users-to-either-go-complaince-or-different-tack/19913/