The U.S Securities and Exchange Commission recently issued a public statement related to crypto asset trading and the firms that supplied such assets.
According to the statement, the SEC describes that as they recognize the advantages of the technological progress like blockchain. These have a particular impact on the trading market that ultimately wants firms dealing with such technology to stick to certain regulations.
A representative of the SEC stated that the Commission’s Division of Investment management, Corporation finance and the Divisions of Trading and Markets motivates the technological innovations that are beneficial for capital markets and our investors.
He further added that they have been communicating with the market participants related to the problems posed by the new technologies. However, the market participants should still stick to the SEC’s well-functioning and established federal securities rule framework when using such new technologies even if the securities are issued in certified form.
The Issues and the Legal Actions
The statement further explains that most of the problems that have an impact on the trading market in a negative way arise because of three reasons such as ICOs, the firms or the projects that center over the digital currencies and the secondary market trading of crypto assets.
The statement then mentions about the legal actions the SEC has taken over some firms that did not follow the association’s registration procedures or against such firms that offered trading services by back doors without supervision.
Rules Beneficial to the Public
The Securities and Exchange Commission ensures that its registration process is specially designed and created to keep the users and their privacy safe. The main agenda of Commission is to protect the users and their currency from the entities who carry out illegal acts.
More regulations often mean that the market is growing and is becoming mainstream with people in charge. Hence, the SEC’s aim is to protect and supervise the crypto world to ensure the safety of the customers that come with investing.