The Securities and Exchange Commission (SEC) has maintained its anti-crypto stance and elevated scrutiny on the crypto firms dwindled their progress and public itemizing. SEC Chair Gary Gensler appears to expedite the proposed “Regulation Best Execution” to extend its jurisdiction over the crypto market. It may even make the SEC having extra management over crypto corporations and exchanges.
Why SEC Chair Wants “Regulation Best Execution” Rule?
The SEC proposed “Regulation Best Execution” below the Securities and Exchange Act of 1934 (Exchange Act) to reinforce the present regulatory framework. It will introduce a “best execution” normal for brokers, sellers, authorities securities brokers, authorities securities sellers, and municipal securities sellers to extend investor safety.
Gary Gensler in a tweet on January 25 urged folks to submit their feedback to the proposal till March 31 to instantly introduce this obligatory rule for brokers and sellers. If adopted, the rule will implement insurance policies and procedures when buying and selling securities comparable to equities, mounted earnings, choices, crypto safety tokens, or different securities.
“If adopted, our best ex rule would help ensure that brokers have policies & procedures in place to uphold one of their most important obligations: to seek best execution when trading securities, whether equities, fixed income, options, crypto security tokens, or other securities.”
However, the rule will improve the SEC’s jurisdiction over cryptocurrencies, which is but to be determined by the U.S. Congress. Earlier, the SEC outlined cryptocurrency exchanges as “brokers” to acquire broker-dealer registration pursuant to Section 15 of the Securities Exchange Act of 1934. The transfer was criticized by the CFTC and the crypto group.
While rules are essential for crypto market progress, compelled regulation and heightened scrutiny by the SEC impacts progress. The rule will present extra management over crypto corporations to the SEC.
SEC Stops Crypto Firms To Go Public
Several crypto firms together with Bullish Global, Circle Internet Financial, and eToro have did not obtain regulatory approval from the SEC to go public. Other listed firms comparable to Mike Novogratz’s Galaxy Digital and Coinbase are below scrutiny since itemizing. The SEC has grow to be extra strict following the collapse of FTX.
Also Read: Bitcoin (BTC) Price To Hit $25K or $21K, What’s Next?
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