Industry experts weigh in on SEC hiring more crypto cops

The U.S. Securities and Exchange Commission (SEC) is looking to hire more people to focus on digital assets, almost increasing the number of staff tasked with protecting investors in cryptocurrency markets.

The SEC’s Cyber ​​Unit, which comprises the Crypto Assets and Cyber ​​team, is expected to hire 20 new people to increase its total strength to 50 dedicated positions, Cointelegraph reported on May 3rd. This development occurs when the regulatory body tries to keep up. with the increasing popularity of virtual assets.

The SEC’s decision to expand its cryptocurrency unit has been praised by industry experts, with Dr. Anna Becker, CEO and co-founder of EndoTech, calling it “a welcome development.” She believes that improved security, regulation and complex financial investment solutions will allow digital currencies to be more widely accepted.

On cryptocurrency companies working with regulators, Becker told Cointelegraph that “When we work together to establish and abide by the rules, we will create a market that serves the public and gives them the opportunity to make money with adequate protection.” She added:

“This market is still in its infancy. When it comes to cryptocurrency trading, we need the same types of guarantees that have developed in the stock markets and other major markets over the years. This will allow cryptography to become an asset class. more robust with more advanced financial tools “.

JST Fraser, head of strategy at BSTX, believes cryptocurrency companies should interact with regulators. He noted that the severity of the recent price declines could be attributed in part to the lack of depth and the number of active participants in the cryptocurrency markets. According to Fraser, a consistent and predictable regulatory environment could encourage more institutional traders to participate in reducing price fluctuations.

Andrea Gordon, a compliance expert and advisor at Eversheds Sutherland, stressed the importance of cryptographic companies working with regulators. She told Cointelegraph that in an ideal world, companies could hold an open dialogue with authorities on particular offers because the regulatory climate of the cryptocurrency is always changing.

According to Gordon, some companies may not want to deal with the authorities because the procedure can be costly and time consuming (causing a delay in product launch) or perhaps lead to enforcement action. She cited Coinbase’s experience with the SEC on its lending service as a warning. She said:

“In September 2021, Coinbase’s legal director announced in a blog post that after Coinbase engaged with the SEC on the product for nearly six months, the SEC threatened to sue if Coinbase launched Lend.”

On how the two sides work together to build a mutually beneficial relationship, he said education is crucial in the world of cryptocurrencies. The industry should look for ways to educate regulators while encouraging a meaningful regulatory approach.

“Regulators often issue proposed rules for public comment. These are great opportunities for industry to consider and explain the possible (or unintended) effects or consequences of regulation.”

Anndy Lian, chief thinker and chief digital adviser to the Mongolia Productivity Organization, said that control bodies could adequately regulate the cryptocurrency industry. Lian said most regulators are trying to apply old rules and laws to the cryptocurrency industry to catch up, and that “it has resulted in a game of recovery in which they have to be constantly changing.”

Related: The United States focuses on the regulation of stable currencies

Pratik Gauri, founder and CEO of 5ire, addressed the current situation between cryptocurrencies and regulators. According to him, “there is still a great deal of mistrust on both sides.” He told Cointelegraph that “cryptographic people have demonized regulators” as working for the banking lobby or other organized interests, and regulators have characterized all cryptographic transactions as illegal activities. However, he added that recent innovation and volatility in the cryptographic space have led two parties to reconsider their stance.