Sologenic co-founder Bob Ras took to his Twitter handle to explain how the SEC’s tough stance on crypto regulation is causing significant troubles for the industry. He said that the SEC is currently in a weaker position when it comes to understanding cryptocurrencies as compared to earlier times. Their attempt to classify most digital assets as securities shows a lack of understanding of these new technologies and hence, companies like Ripple are facing unnecessary legal battles due to this mistake.
The SEC’s actions against crypto projects, often without good reason, have harmed the agency and hindered innovation, according to him. This has led many projects, including companies like Ripple, to move overseas. The SEC’s approach is like an old-fashioned lawmaker trying to apply outdated laws to a technology they don’t understand well.
He wrote, “The SEC’s pursuit of crypto projects, many without reasonable grounds, has effectively shot the agency in its own leg, stifling innovation and causing a significant number of projects to go offshore. Companies like @Ripple are forced to deal with this adverse environment.”
He explained that the crypto-assets represent a distinct asset class, and labeling them solely as securities fails to recognize their unique characteristics and potential. It would have been wise for the SEC to establish a regulatory framework that acknowledges the nature of these assets. Recent court proceedings in the Ripple case have highlighted the SEC’s inconsistent position, suggesting that not all crypto-assets meet the criteria for being classified as securities
“The SEC needs to shift from its regulation-by-enforcement approach. It’s time to embrace a regulatory framework that encourages innovation while protecting investors. If the SEC continues its current approach, it risks further damaging its reputation and the US’s position in the global crypto market.”
Source: https://coinpedia.org/news/ripple-vs-sec-the-secs-approach-is-like-an-old-school-lawmaker-says-sologenic-co-founder/