The libertarian think tank criticizes the US SEC's approach to cryptocurrency and blockchain

The libertarian think tank criticizes the US SEC's approach to cryptocurrency and blockchain

Recently, John Berlau, a senior researcher at the Competitive Enterprise Institute in the United States, published a report in his April 11 report on his dissatisfaction with the SEC's approach to regulating cryptocurrencies.

In a report titled "Cryptographic Currency and SEC Unlimited Power Capture: Why Speculative Consumer Products Are Not Securities," John Berlau said that cryptocurrency and blockchain are revolutionary innovations, but their potential has been "heavy regulation." Obstructed.

Berlau said, "No agency in the federal financial regulators poses a greater threat to cryptocurrencies and related blockchain technologies than the US Securities and Exchange Commission (SEC)." He believes that the government's suppression of these technologies has prevented entrepreneurs from trying new methods and applications.

Berlau further pointed out that if the SEC believes that cryptocurrency is a security, then its review may threaten the function of blockchain technology. He said that the SEC's regulation of cryptocurrencies may hurt retail investors:

“Thinking cryptocurrencies as securities may not directly reach the middle class, and the red tape regulation comes from both SEC regulations and financial regulatory laws. For example, the Sarbanes-Oxley Act of 2002 and 2010 The Dodd-Frank Act – has prevented small investors from reaching such assets in the early stages."

The report continues to criticize the Howe test used by the US Securities and Exchange Commission and the Supreme Court to define whether an encrypted transaction is eligible for an "investment contract." He said the test gave the agency the power to regulate many cryptocurrencies as securities. This makes it possible to take more stringent measures against cryptocurrencies than other investment funds.

In early April, the US Securities and Exchange Commission issued a guidance document called the “Digital Asset Investment Contract Analysis Framework” to help market participants determine whether digital assets are considered investment contracts to determine whether they are securities.

Commenting on the document, Berlau said it “appears to further extend the Howey test and greatly expands which products can be considered securities.”

Earlier this week, US lawmakers reintroduced the symbolic taxonomy in the House of Representatives. If the bill becomes law, it will exclude digital currency from federal securities laws.

Author: Kiran
Remarks: Bitcoin86 manuscript article, please indicate the source. The article is an independent view of the author and does not represent the standing position.