The United States Securities and Exchange Commission (SEC) is seeking to hire more people to focus on digital assets, and to double the number of employees entrusted with guarding investors in cryptocurrency markets.
The SEC’s cyber unit, which includes its crypto and cyber assets team, is expected to recruit 20 new people for 50 dedicated positions as reported by Cointelgraph on May 3. This development comes when the regulatory body tries to keep up with the rise in popularity of virtual assets.
The SEC’s decision to expand its cryptocurrency assets unit has been praised by industry experts, with Dr. Anna Becker, CEO and co-founder of EndoTech, calling it a “welcome development.” It believes improved security solutions, regulation and complex financial investments will enable digital currencies to become more accepted.
Regarding the crypto companies cooperating with the regulators, she told the Cointelegraph that “when we cooperate to set and abide by the rules, we will create a market that serves the public and gives them the opportunity to make money with adequate protection.” She added:
“This market is still in its infancy. When it comes to crypto trading, we need the same types of hedges that have evolved in stocks and other mainstream markets over the years. These will allow crypto to evolve into a stronger asset type with more advanced financial tools.”
Jay Fraser, head of strategy at BSTX, believes crypto companies need to interact with regulators. He noted that the severity of recent price declines may be attributed in part to the lack of depth and the number of participants active in cryptocurrency markets. According to Fraser, a consistent and predictable regulatory environment may encourage more institutional traders to participate in curbing price fluctuations.
Andrea Gordon, a compliance expert and consultant at Eversheds Sutherland, stressed the importance of the crypto business working with regulators. She told the Cointelgraph that in an ideal world, companies would be able to have an open dialogue with authorities about certain proposals because the regulatory climate of cryptocurrencies is always changing.
According to Gordon, some companies may not want to deal with authorities because the procedure may be costly and time consuming (resulting in a delay in product launch) or may lead to enforcement action. She cited Coinbase’s experience with the SEC over its lending service as a warning story. she said
“In September 2021, Coinbase’s chief legal officer announced in a blog post that after Coinbase contracted with the SEC regarding the product for nearly six months, the SEC threatened to sue if Coinbase would launch Lend.”
On how the two sides are working together to build a mutually beneficial relationship, she said education is essential in the world of cryptocurrencies. The sector should look for methods to educate regulators while encouraging a sensible regulatory approach.
“Regulators often issue proposed rules for public comment. These are great opportunities for industry to consider and explain the potential or (perhaps unexpected) effects of regulation.”
Andy Lian, thought leader and chief digital consultant of the Mongolian Productivity Organization, stated that regulatory bodies can adequately regulate the cryptocurrency sector. Liane argues that most regulatory bodies are trying to apply old rules and regulations to the cryptocurrency industry to close the gap, and this has “led to an updating game where they have to change all the time”.
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Pratik Gauri, founder and CEO of 5ire, referred to the current situation between the crypto business and regulators. He said, “There is still a great deal of mistrust on both sides,” he told the Cointelegraph. , And regulators have characterized all crypto operations as illegal activities.However, he added that recent innovation and volatility in the crypto space have caused the Cointelegraph.Two parties to reconsider their position.