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In recent years, the Securities and Exchange Commission (SEC) has come under significant negative criticism from members of the crypto community due to its failure to provide clearer regulation.
The lack of regulatory clarity from the SEC has caused major problems in the crypto sector, with several crypto-related firms, including Ripple, being charged with conducting an unregistered securities offering.
In its recent publication, the SEC noted that due to the legal, technological, and regulatory risks associated with protecting crypto assets, crypto companies are expected to carry the asset and the associated liability on their balance sheets at a fair price.
Commenting on the SEC publication, Hester Pierce, a spokesperson for the agency known as “Crypto Mama”, expressed concern about what is happening.
Pierce, who believes that the definition of accounting for crypto companies is appropriate, noted that the risks associated with cryptocurrencies, as mentioned in the SEC guidance, are not new.
However, she accused the SEC of consistently refusing to clarify the regulation of the cryptocurrency industry despite several calls and requests.
“Despite numerous requests, the Commission has refused over the years to provide regulatory guidance on how our rules apply to crypto assets, so part of the responsibility for the lack of legal and regulatory clarity lies with us.” Pierce said in a statement.
These “Crypto mom” comments confirm that several of the legal issues that the crypto industry has had with the SEC could have been avoided. if the agency provided clear rules.
Pierce’s comments drew thunderous applause in the crypto community, especially from Ripple’s chief legal officer Stuart Alderothy, who quoted her remark on Twitter.
“THE COMMISSION HAS REFUSED, DESPITE NUMEROUS REQUESTS OVER MANY YEARS, TO PROVIDE REGULATORY ADVICE ON HOW OUR RULES APPLY TO CRYPTO ASSETS, THEREFORE, PART OF THE RESPONSIBILITY FOR THE LACK OF LEGAL AND REGULATORY LIABILITY IS OUT OF OUR LIABILITY.” 🔥 https://T.CO/GB6VEJNJYA
– STEWART ALDEROTY (@S_ALDEROTY) APRIL 1, 2022
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