Crypto Investors Appeal for Token Oversight Exemption in SEC Meeting
Wall Street Journal reports
Andreessen Horowitz and also the Union Square Ventures who are some of the top cryptocurrency investors urged the SEC (US Securities and Exchange Commission) to make considerations of the cryptocurrency exemption in a private meeting. This is according to the Wall Street Journal report on 19th April.
Therefore, the capital firms which is a silicon-based venture held a meeting with the top officials in the SEC division of corporate finance, which is involved in ICO regulation, to have arguments against the stringent cryptocurrency regulations. This is due to the fact that they claim might be harmful to the industry growth.
Therefore, in accordance with WSJ, the investor’s group made arguments that the ICO based tokens should not be regarded as investments. However, they should be products which are utilized in the access of the startup company services. Therefore, this would make sure that the startups would be involved in token sales without the observation of formalities, for instance, the financial reports and business reviews. The group then confirmed to the SEC that the ICO issuers would be responsive in case fraud is realized.
However, the SEC expressed skepticism privately to the broad exemption and might opt for the “limited exemption” from the oversight. Therefore, this would make each of the investors to acquire the investment limits and also the tokens which are purchased would then be sold for a profit to the third parties.
From the time SEC launched the cryptocurrency probe in 2018 February, which then followed that the ICOs might be acting in violation of the security laws, the body involved in regulation increased the ICO projects pressure. However, the SEC was involved in a shutdown of three companies stock trading because of “questions regarding the nature of the companies’ business operations” versus the ICOs.
The question in regard to the ICO and cryptocurrency regulation is a crucial issue, and many people have expressed their views on what they called the concerns to excessive regulations scrutiny to the industry. Other people, for instance, Ryan Zagone, Ripple head of regulatory relations supports the regulatory measures comparing the crypto regulations as the internet days.
“We’re at that time now where we need more clarity and rules, and we need more certainty. It’s a good time to start revisiting that ‘wait and see’ approach taken by regulators.”
According to the president of the digital commerce chamber Perianne Boring, a development of sensible regulation might take time, “You can’t start writing laws and regulations today and expect to get it right, it’s building on wet cement.”
However, in the words of Mike Lempres, the current US regulation lacks understanding and harms healthy innovation because they don’t understand what should be allowed and what shouldn’t.