Szczepanik Takes Lead on Sec’s Advisory Board
Some of the biggest controversies surrounding the world of cryptocurrency include ETFs (Exchange Trade Funds) and ICOs (Initial Coin Offerings). The Securities and Exchange Commission recently announced the new position of Senior Advisor for Digital Assets and the Associate Director of the Division of Corporation Finance.
They also announced Ms. Valerie A. Szczepanik as the office bearer who was the former head of the SEC’s ledger distribution group according to a press release published on June 4, 2018. The controversy around the cryptocurrency has brought contention in the US Senate, where some feel that the issue of ICOs is not well regulated. They, however, felt that blockchain offered no threat unlike the aspects of Altcoins, ICOs, and ETFs. Ms. Valerie A. Szczepanik is taking over the task of coordination between the various SEC sectors, targeting the presence of U.S laws in the emerging digital advancements, which largely includes cryptocurrencies.
Her open-mindedness towards the world of digital markets and their regulation is one of the reasons the employers felt that she is the person for the job. Ms. Valerie A. Szczepanik has been quoted saying that the protection of the investors should be a major concern to everyone if cryptocurrencies were to thrive. This was during a blockchain conference set up in the Big Apple. She also promised to take full advantage of her new position to advocate for fair, free and safe trade in the digital world.
The move has been received as good news with the recent explosion of ICOs and their connection to fraud. The need to control the emergence of the same has risen as some have developed fund platforms that are not real. One of the most current flops was in Bitconnect that led to customers losing millions of dollars. The last year alone has recorded 46% failure in ICOs and loss of money in billions for the unsuspecting investors. Ms. Valerie A. Szczepanik promised to bring sanity in the promising yet highly volatile industry by advocating for the much-needed regulations for both the fund seeker and the investor.
The Senate and other regulators seem to agree that cryptocurrencies and tokens are securities, but need to be brought under review. They also dictated that there is a huge difference between tokens and cryptocurrencies in that token are recognized as digital representations that could hold monetary value worldwide.
SEC is now on the frontline conducting major probes on ICOs, closing down and deregistering those they deem ‘unregistered’. They are also taking a keen interest in educating investors about the risks involved in the digital market and trade.
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