The SEC recently held discussions with two companies regarding cryptocurrencies, revealing important regulatory details.
Overview of Meetings with Industry Representatives
Meetings between SEC representatives and companies Zero Hash and Paradigm focused on addressing regulatory practices in the cryptocurrency industry. The SEC's crypto task force aims to resolve inconsistencies in regulation.
Main Points from the Meeting with Zero Hash
Zero Hash representatives discussed with the SEC the idea of extending existing laws to cover cryptocurrencies, avoiding the need for a completely new regulatory framework. Three main goals were highlighted during the meeting: creating an environment supporting US-based crypto innovation, refining rules to combat money laundering, and strengthening user protection against illegal activities. A critical issue was clarifying the jurisdictions of the CFTC and SEC concerning cryptocurrencies.
Topics Discussed with Paradigm
During the meeting with Paradigm, the misinterpretation of the Howey Test was a significant topic, as it leads to incorrect classification of many cryptocurrencies as securities. The new SEC administration appears to share this view, as demonstrated by halting investigations into Robinhood’s unregistered securities sales.
As this article was being prepared, new meeting minutes were released involving Michael Saylor and Robinhood, both emphasizing the need for clear regulatory policy to prevent the US from lagging in cryptocurrency.
