The US Securities and Exchange Commission (SEC) Commissioner and Vocal Crypto critic Caroline Crenchs has accused the US regulator of reducing risks and incorrectly presenting the US Stabecrim market in its newly published guidelines.
However, many people in the Crypto industry see SEC’s decision as a step in the right direction.
In a statement of April 4, Creshow, which is widely known for opposing the spot bitcoin ETF, Said SEC’s statement on StableCoins “had legal and factual errors that depict a distorted picture of the USD-StableCoin market that considers its risks significantly.”
Crenshaw disagree, praises the crypto industry
Under the new SEC guidelines, stabechoin, which meet some criteria, is now considered “non-protection” and exempted from transactions reporting requirements.
Creshow disputed the accuracy of the analysis made by the SEC in reaching that decision. He pushed back to the SEC to repeat the issuer tasks “which allegedly stabilizes the value, ensures redeemability, and otherwise reduces the risk.”
Source: David sax
The SEC stated that “although in short, some USD-stabechines are available only through a mediator for retail buyers and not directly from the issuer.”
Crenshaw argued that it was misleading. He said:
“This is the general rule, no exception, that these coins are available only to retail public through mediators that sell them in secondary market, such as Crypto Trading Platform.”
“More than 90% of USD-stableCoins are distributed in circulation in such a way,” Carenshaw said.
Meanwhile, many people in the Crypto industry expressed optimism on the decision.
Ian Balina, the founder of token metrics Said It seems like a clear step in focusing on what really means in Crypto Space. ”
Crypto industry says positive steps, just late
Vemanti CEO Tan Tran Said He wished that SEC reached this point three years ago, while Midnight Network’s leading partnership Ian Kane Said It seems like progress to crypto people trying to play by rules. “
Carenshaw stated that it is “grossly incorrect” for SEC to assure users to SEC that an outgoing can handle unlimited redemption simply because its reserves coincide or exceed the value of supply.
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“The overseas financial health and solvency of the issuer cannot be underestimated by the value of its reserve, which does not tell us anything about its liabilities, risk from ownership financial activities, and after that,” Creshow said.
He explained that Stabelin always takes some risk, especially during the market recession.
This comes only a few weeks later when Stabechoin Issuer Therl was allegedly attached to the reserve audit with a large four account firm and verify that its USDT StableCoin is supported in the ratio of 1: 1.
On March 22, C Cointelegraph reported that Tither CEO Paolo Erdoino said that the audit process would be more straightforward under the Pro-Crypto US President Donald Trump.
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