News - Internal disagreements at SEC due to new crypto regulations
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The Securities and Exchange Commission (SEC) conducts the regulation for the crypto market up. This announced the U.S. stock market regulator in a press release. Specific changes include rules requiring registration for "traders" and "traders in government securities."
SEC Chairman Gary Gensler supports this regulation. It would protect investors and promote market integrity, resilience and transparency.
Hester Peirce expressed her concerns: "The rule defines dealers in a way that is inconsistent with the legal framework." According to the crypto-friendly SEC commissioner, this distorts market behavior and degrades the quality of the market.
The "excessive regulatory requirements" and associated costs are likely to drive smaller players out of business, Peirce tells the SEC.
In any case, regulation is hard to square with the crypto sector: after all, a decentralized software protocol cannot register as a "trader."
The SEC's definition of crypto-assets creates additional difficulties. The new regulations apply to traders in crypto securities. However, it is still unclear which crypto-assets will be regulated as securities or commodities.