The United States SEC will set up a panel and have discussions about cryptocurrencies and digital assets. The panel will discuss how best to ensure consumer protection in line with the commission’s set objectives. The SEC will discuss the revolutionizing market conditions and the rate at which blockchain technology is developing.
What Will Be Discussed?
SEC revealed on their page that the panel would be searching for effective ways to ensure protection for those who want to invest in the new asset class. Members of the committee will also discuss how it can adapt its current investor protection metrics to suit the changing markets. The group will look at the inherent harms that come with this new market in certain blockchain technologies.
Market price action has not shown any shift in response to the announcement. There is a chance the discussion results could bode well for the new asset class. The SEC has stated that the regulatory body will only approve products to ensure investor protection.
The committee will not only be composed of members of the regulatory body. The committee will consist of leaders and experts in different financial institutions, educators included. Regulating this new asset class is becoming a problem for regulators around the world.
Regulatory Approaches In Different Countries
Different countries have responded in various ways to the emerging market. Regulators have responded in unique ways to the new asset class that threatens to disrupt the system. Most progressive countries want to find a balance between protecting investors and ensuring innovation.
Canada has defined the new class of assets in its regulations. Reuters stated in the middle of the year that Canada was one of the first countries to adopt the new asset class. The regulatory bodies of the country see cryptocurrency as a product of taxation.
Israel’s policies define digital assets as financial assets within the law. The securities commission classified cryptocurrency as a security asset. The country’s tax authority, however, sees it as an asset requiring tax on the profits made from it.
Germany’s regulatory body has classified cryptocurrencies as financial instruments. They, however, don’t fully recognize it as currency as they believe it can’t do all the things money can do. Citizens are, however, free to hold and transact in digital assets as long as the government approves the exchanges they use.
In the United Kingdom, the government recognizes that a difference exists between cryptocurrencies and fiat currency. There is no precise regulation as of yet. Bank of England’s Jon Cunliffe, in recent times, has called for regulations not just in the UK but globally. He believes that the legislators are already behind due to the rapid development in the industry.
There are concerns about cryptocurrency adverts in the UK. An investigation was launched recently into the Shiba Inu-inspired token Floki Inu due to the concerns that they may be promising unfounded returns. There are reports that the Bank of England is consulting with experts to produce the country’s CBDC.
The United States, before the SEC meeting to hold in December, has also made efforts in the Infrastructure Bill to protect users and tax the industry. The blockchain industry is to be represented by an executive of The Blockchain Association at the SEC meeting. The panel is scheduled to hold for just 90 mins.
