Peter Schiff, an economist notoriously skeptical of cryptos, has just come to their aid. He protests against the new rules adopted by the Securities and Exchange Commission (SEC) to regulate the sector.
Peter Schiff defends crypto against the SEC
It’s an unexpected turnaround, to say the least. Peter Schiff, who has continued to predict the collapse of Bitcoin in recent years, is stepping up to defend cryptos against the SEC.
The SEC recently adopted rules requiring certain crypto market participants to register with it and submit to stock exchange regulations. Concretely, anyone trading more than $50 million in crypto or traditional assets will have to join a self-regulatory organization (SRO) and comply with federal securities laws.
According to the SEC, this decision aims to better regulate an “opaque and non-compliant” crypto market. It will also help combat price manipulation and insider trading. Arguments that do not convince Peter Schiff.
This renowned economist emphasizes that these measures are not based on any clear legal basis. According to him, the SEC is exceeding its powers and attempting to abusively control an innovative sector.
A complicated application that bristles
Even within the SEC, this regulatory tightening is not unanimous, far from it. Its commissioner Hester Peirce publicly questioned the complexity of its practical application.
During tense exchanges, she questioned her colleagues on the exact number of people ultimately affected.
“ If you develop smart contracts and also use them to trade, are you concerned? ? ”, she asked. “ Impossible to say, this sector is not yet transparent enough“, he was told.
These evasive answers reinforced his doubts: the application of these measures seems complex and confusing. For her, the SEC is heading towards a “titanic challenge” and endless procedures. Even its president acknowledged that the threshold of $50 million in assets was quite arbitrary.
Enough to reinforce the position of Peter Schiff and other skeptics! For them, this delay proves the lack of legal basis for the new rules. The SEC would only try to slow down this promising sector.
It remains to be seen who will emerge victorious from this regulatory tug of war with twists and turns. But the fact that even the fiercest opponents of cryptos are now rushing to their aid proves that the lines are moving. To be continued !
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