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The insufficiency of an explicitly precise form of regulation on the crypto industry by the Securities and Exchange Commission has raised alarms and caused major fallout between the agency and members of the cryptocurrency community in recent years.
The lack of clarity in SEC’s regulatory provisions has triggered major challenges in the cryptocurrency sector – with several crypto-related firms, including Ripple, being charged with administering unregistered security initiatives.
As stated in a recent publication by the Securities and Exchange Commission, the organization cited that due to the legal, technological, and regulatory risks linked with the security of crypto assets, affected companies are required to record an asset and a corresponding liability on their balance sheets at fair value.
Hester Pierce – a commissioner at the SEC popularly referred to as Crypto Mom – made comments on the publication indicating her dissatisfaction with the manner the proposal is being curated.
Peirce – who finds the accounting evaluation for crypto companies as adequate – cited that the risks cryptocurrencies pose, as mentioned in the SEC bulletin, are nothing new.
However, she fingered the SEC with blame, citing its ongoing refusal to provide clarity in regulation for the cryptocurrency industry despite several calls and pleas.
“The Commission has refused, despite many pleas over many years, to provide regulatory guidance about how our rules apply to crypto-assets, so some of the responsibility for the lack of legal and regulatory clarity lies at our doorstep,” Peirce said in her statement.
Peirce’s comments were immediately flooded with lots of applause within the crypto community. Also, the General Counsel of Ripple – Stuart Alderoty quoted her tweet with a “fire” emoji to indicate burn or heat. His tweet read;
“The Commission has refused, despite many pleas over many years, to provide regulatory guidance about how our rules apply to crypto-assets, so some of the responsibility for the lack of legal and regulatory clarity lies at our doorstep.”