Are crypto firms endeavoring to follow existing regulations that are clearly applicable to their offerings? Given a report today from CoinDesk, it appears that this is not the case. Apparently, last week, the SEC’s Finhub, which regulates tech startups announced that it will be going on tour to several major United States cities.
While on the surface, they seem to be doing so to be more accessible to blockchain startups in particular, the effective head of the SEC’s digital assets division was quoted as saying that they will not be giving out any advice that can be considered legal counsel.
Given this, it is easy to question the value of connecting with the SEC in person in these cities, which include San Francisco, Denver, and several others. The same person leading the digital assets division was quoted as saying in response to this that the SEC hopes to offer helpful advice to guide startups toward being compliant.
What this specifically appears to mean in the context of the blockchain industry is that the regulators will be able to point out frameworks that startups should look into, without expressly saying that such actions are required. Still, considering that only somewhere around 6 firms responded to the SEC’s recent letter that, at least, temporarily bans crypto ETFs, it seems that regulators are not being taken as seriously as they should be.
With that in mind, what can be done? Judging by CoinDesk’s article, the SEC’s ultimate hope is that startups will come to them on the tour with pain points that need to be clarified for regulations to be truly clear.
Even so, an overarching issue remains that has not exactly been addressed. Do current regulations suffice for an industry that is consistently innovating on the way we think about and deal with just about any asset?
By: BGN Editorial Staff