On June 12th 2023 inline with the recent congress house meeting addressing the lingering issues over American Security Exchange Commission to give public clarity on the issue concerning crypto regulation and protection of investors capital a new SEC stabilisation act has been filed by a house Rep Warren Davidson joined with Majority Whip Tom Emmer and also seek removal of SEC chair.
Since SEC chair have been shying away from addressing the issue of what is to be considered security and none security in the crypto space, which has cause turmoil in the market, with allegation of BinanceUS and Coinbase offering unregistered token to U.S investors. Without proper redress and clarification from SEC America major exchange will continue to fall afoul of SEC rules governing the crypto market in that jurisdiction, a major concern raised during the Congress press release statement is that SEC attempts to regulate the crypto market using existing traditional financial institution rules creating lot of misconception. the entire public deserves some level of clarification on the issues surrounding crypto regulation.
Recap of the SEC Stabilisation Act
The new bill seems to focus more on SEC being a political setup body goven under a specific party and seek to discontinue the reign of tyranny of such administration of single party taking lead over every action overruled by the SEC by introducing more six Commissioners to the table from other parties that will oversee every action taken by SEC before it can be executed.
American investors and industry deserve clear and consistent oversight, not political gamesmanship. The SEC Stabilization Act will make common-sense changes to ensure that the SEC’s priorities are with the investors they are charged to protect and not the whims of its reckless Chair.
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Having a crypto friendly space needs clarity of rules governing the space while most exchanges are working closely with stipulated guideline set aside by SEC to have a harmonious relationship with regulatory agencies, this seems not to be working as these commission always look for loopholes to pinpoint accusing finger on crypto exchanges, a call to address this issue is passed hopefully some sanity will be restored to the crypto space.
To address this issue, the SEC Stabilization Act proposes several changes.
The act suggests adding a sixth commissioner to the SEC, ensuring a more balanced decision making process, an Executive Director would be appointed to oversee the agency's day to day operations. Despite these changes, the authority for rulemaking, enforcement, and investigation would still remain with the commissioners, who would serve for six year terms, no single political party would hold more than three commissioner seats. This arrangement aims to safeguard U.S. capital markets from potential destabilization caused by political agendas. By limiting the influence of any one party, the act seeks to maintain stability and encourage collaboration among the commissioners before approving significant actions within the SEC's jurisdiction.
What's in for investors
Inline with the SEC Stabilisation Act investors capital and rights need to be protected by reevaluation of regulatory overreach and a comprehensive review of the SEC's regulatory approach to ensure that it aligns with the principles of fair and efficient markets while minimizing unnecessary burdens on businesses and market participants. There is need for transparency and accountability within the SEC in dealing with investors policies to align with the current crypto guideline.
With this new act American investors could enjoy a fair crypto environment for trading their digital assets without fear of scrutiny and laws proposed by SEC that will disrupt the market this proposed bill could take more than expected time before they they are approved but it seems to be an advance means of tackling what seems to be an unsolved issue between the crypto space and U.s SEC.
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