- By Pierre-Alexandre
March 21st, 2019
Brookings Institution, an American research groupe has published a report calling the country’s Securities and Exchange Commission to regulate the cryptocurrency sector. Their report noted that crypto assets are not currently controlled and the SEC should work towards changing that.
The institute believes that the time is right for cryptocurrencies to be regulated. According to the report, rolling out better regulations for blockchain and crypto-related companies will benefit investors, lead to further development of new technologies, reduce the cybersecurity risks related to cryptos, and reduce the use of digital currencies for illegal payments.
The report, however, blamed the emergence of Bitcoin which it claims does not provide the trustable environment most people had expected. The institute faulted crypto assets for creating new financial intermediaries and companies that lack the accountability of traditional banks.
The paper presented some conflicting arguments. In the first instance, it claimed that the current securities and derivative market rules do not apply to cryptocurrency exchanges and trading platforms.
However, the SEC has jurisdiction over cryptocurrencies that serve as securities while the CFTC regulations cover digital assets that act as derivatives.
Former CFTC Chariman Timothy G. Massad, the author of the report, recommended that no new regulatory body should be created to tackle cryptocurrencies. Instead, the SEC and CFTC should be allowed to regulate the new market.
SEC to hold public FinTech forum on blockchain
The SEC in its effort to better understand blockchain technology and cryptocurrencies is set to host a public fintech forum on blockchain technology in May 2019. According to the commission, the Strategic Hub for Innovation and FinTech will be aimed at helping some of its staff understand blockchain and other financial technologies.
The Strategic Hub for Innovation and Fintech event will take place on May 31, 2019, and will be the second one organized by SEC. Despite the notion by most crypto enthusiasts that the SEC had to create the forum due to its rejection of Bitcoin ETF proposals, the commission pointed out that it is hoping to address some key questions and resolve issues that blockchain developers, fintech leaders, and crypto enthusiasts might have.
The event will have in attendance SEC staff, cryptocurrency professionals, and academicians, with a broad range of topics to be discussed. The commission stated that it would be releasing more information about the event and its participants over the next few weeks.