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What Would It Mean To Crypto Currency By Two New Nominees For SEC?

The United States President, Donald Trump, has named two fresh nominees, Elad Roisman and Allison Herren Lee, as Commissioners for the Securities and Exchange Commission (SEC). Significantly, this has come at a time when the regulator is facing a number of issues that included the cryptocurrencies and the digitization of economy, which is going on for about two decades now. However, some policymakers think that the regulator has failed to keep pace with the development of a changing world.

Several Studies

As a result, the SEC has come under the scanner of the Congress that has advised the securities regulator to embark on several studies. Their reaction came after the initial public offerings (IPOs) have reached its low in recent time. Similar is the case in respect of the new start-ups business. On top of these, Tesla founder and CEO, Elon Musk, dropped a bomb to take the company private. Some experts attribute it to outdated securities law that failed to encourage prospective enterprises.

The companies are skeptical of disclosing as much information as needed by the SEC because of fast innovation in an age of algorithms. Enterprises fear that the more disclosures meant more chances of copying them simply, trustnodoes.com reported. This kind of situation reflected like a mirror of the extensive economy. The regulator is charged off with a Luddite in this space. However, this could change since the SEC is governed by five commissioners and decisions are taken through voting.

For several months, the five-commissioners set up has not been there, and Elad Roisman is named as the fourth commissioner, who is going through the approval process. If the report is correct, then he might join the likes of Hester Peirce, who voiced his dissent for not according approval to bitcoin ETF terming it a disservice and discouraging innovation. The new nominee might be keen for a free market apart from encouraging innovation.

If that comes into effect, then there is a possibility of voting reaching a tie on several issues. That is due to the comments made by Jay Clayton, who believes that it is unnecessary to adapt to the digital age even as he termed the current rules are fine. Robert Jackson, the other Commissioner, supported Clayton on bitcoin ETF. Therefore, a lot will depend on Allison Herren Lee, on several issues.

Encouraging Fintech

There is also report suggesting that she might be keen on encouraging fintech enterprises to compete with banks. That will keep the banking institutions accountable while she might prefer a lot of changes to SEC rules to accommodate the interest of tech firms that are different from the existing one. If she is supportive, then the SEC might start looking at the regulations afresh and analyze as to why they are not successful in encouraging capital formation.

The SEC has also postponed its decision on bitcoin ETC to September 30 seeking more time to look into the matter. The cryptocurrency market is under its scanner for quite some time. As a result, the initial coin offerings (ICOs) have come under the scanner.

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Ben is a sales and marketing expert with over twenty years experience at senior-level positions for companies such as Motorola, VeriSign, and SecureWorks. He has a degree in Engineering Physics from the University of McMaster in Ontario, Canada. He has an experience of 5+ years in the field of cryptocurrencies and security.