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The SEC continues to avoid discussions on possibly updating its securities laws. The current laws on-the-books go back some 85 years and many claim they have become outdated in today’s digital world.
The SEC refuted claims that it is “standing in the way of progress,” despite operating a clunky regulatory regime that is likely pushing many blockchain businesses away. In discussing security tokens recently, SEC Chief Jay Clayton told reporters that he does not plan to change the laws.
“I think a lot of people got excited that somehow we would change the rules to accommodate the technology and they invested their time and effort thinking that would happen. I have been pretty clear from the start, that ain’t happening.”
Clayton did stress, however, that the SEC is ultimately ‘pro-business’ and is, by no means, against cryptocurrencies. However, he seems opposed to legal reform of any kind.
“If we have a way to reduce the cost of payments internationally through technology, I am all for it. But you can’t sacrifice basic principles of securities law, and other law, to allow it to happen.”
The SEC chief also said that Facebook’s Libra is on shaky footing and would likely need to be policed similar to an Exchange-traded Fund (ETF). Although avoiding commenting directly on the topic, he said that “if something looks like an ETF and operates like an ETF, the law says it should be regulated like an ETF.”
It seems that, for now, we shouldn’t expect the SEC to budge on its old ways when it comes to securities anytime soon.
Do you still believe we could see a revamping of existing securities law in the coming years? Let us know your thoughts in the comments down below.
Image courtesy of ThinkAdvisor.