SEC’s ‘brute force’ crypto regulation attempt is ‘bad policy’ — Paradigm
Criticisms of the United States Securities and Exchange Commission (SEC) are mounting as the agency remains unrelenting in its war on crypto.
On April 21, Web3 venture capital firm Paradigm published a policy piece on the problems with SEC registration.
It claimed that SEC chair Gary Gensler’s “attempt to brute force crypto assets that may not even constitute ‘securities’ into an ill-fitting disclosure framework is bad policy.”
The firm, which invests hundreds of millions into crypto and Web3 startups, said the SEC fails to provide crypto asset users and investors with the information they need.
It also denied the SEC’s claims it offers crypto entrepreneurs a viable path to compliance.
Paradigm points out the current disclosure policy was developed in the 1930s, long before the internet. It claims current policies are “tailor-made for centralized companies issuing securities” and that crypto markets are fundamentally different.
Gensler’s SEC wants to brute force crypto into an ill-fitting disclosure frameworkIn our latest piece, we show why this is a bad policy that fails to give crypto users and investors the info they need, or provide entrepreneurs w/ a viable path to complyhttps://t.co/jOpxYJSl6U
The firm noted that securities provide the holder legal rights against a centralized entity, however, there are no “legal rights” with most cryptocurrencies but “technological abilities in a protocol.”
Additionally, crypto assets can be completely independent of their issuer and maintain full functionality without their input.
Crypto assets can also be traded peer-to-peer and on a fundamentally different technology stack, unlike traditional securities and stocks which trade on an “archaic system full of intermediaries.”
The venture
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