SEC Commissioner Caroline Crenshaw has insisted that the ‘safe harbor’ for crypto firms, would actually have worsened the situation that happened during the initial coin offering (ICO) boom of 2017 and 2018.
Caroline Crenshaw, who’s a commissioner at the U.S. Securities and Exchange Commission (SEC), made the comments at the yearly “SEC Speaks” program, before posting her speech to the website of SEC on Tuesday.
According to the commissioner, markets and investors would have been at the receiving end of the blowback if safe harbor provisions were already in place in that period. Especially seeing as digital asset offerings and ICOs raised billions from investors and almost never delivered.
Meanwhile, there are many crypto lovers who are at the corridors of power themselves and have been openly supporting and advocating for the safe harbor proposal. First on this list is SEC commissioner Hester Peirce. Well known as “Crypto Mom”, commissioner Peirce submitted a revised version of the proposal back in March 2021. And then there’s North Carolina House Representative Patrick McHenry. According to Cointelegraph’s reports on October 5, McHenry has also put forward a three-year safe harbor proposal in a draft bill of the “Clarity for Digital Tokens Act of 2021.”
Crenshaw suggests a ‘bridge’ instead of a ‘safe harbor’
Crenshaw believes that the safe harbor proposal will not really be pushing the crypto sector towards compliance. Rather, she is of the opinion that it would even expose investors’ capital to more risks. Her argument may just be quite factual, however, seeing as crypto tokens would then be taken to be outside of the jurisdiction of the SEC for several years.
In the place of a safe harbor, Crenshaw then suggested what she called a “bridge”. According to her, this bridge will enable token issuers and other crypto firms to work for hand in hand with SEC, outlining plans for regulatory compliance, or discussing exemptions as deemed appropriate in particular cases.
Read More
All News
Floppypepe ($FPPE) is your ticket to the moon. Escape the ordinary and reach for lunar gains with this AI meme token. Secure your spot now before it's too late.
Join Now