Lawyer John Deaton has voiced strong criticism against the U.S. Securities and Exchange Commission (SEC) for its reliance on 1933 regulations to oversee modern technologies like blockchain and artificial intelligence.
Are 1933 Regulations Still Relevant Today?
According to Deaton, the current disclosure laws were crafted to counteract information disparities in a time devoid of contemporary technology, rendering them ineffective against the swift pace of current innovations.
Is the SEC Prepared for Technological Advances?
Deaton asserts that blockchain companies are hindered by these antiquated regulations. He advocates for the SEC to establish straightforward guiding principles for the industry, echoing comments made by Michael Saylor about integrity in business practices. Key takeaways from Deaton’s critique include: The SEC’s reliance on century-old regulations is detrimental to the blockchain sector; Modern investors can access real-time information, making traditional disclosure rules obsolete; Leadership reform within the SEC is essential to modernize its approach to technology.
Continuing Reform in the SEC
Deaton emphasizes that the new leadership at the SEC should adopt a forward-thinking, technology-centric strategy. Ripple CEO Brad Garlinghouse has also expressed concerns regarding the implications of appointing Bob Stebbins, pointing out potential continuities in enforcement-driven policies. Together, Deaton and Garlinghouse urge the SEC to create a transparent regulatory landscape that supports the growth of the blockchain industry.
John Deaton's critique highlights the need to reassess SEC regulations in the context of rapid technological advancement and support for innovative economic sectors.
