Connect with us


Crypto leaders at odds over SEC’s ‘accredited investors’ move



Major players in the crypto community have responded to the U.S. Securities and Exchange Commission recently amending its definition of an “accredited investor”. While many gave positive feedback, some say the new rules don’t go far enough. 

On Aug. 26 the SEC announced that the accredited investors definition would now be based on “professional certifications, designations or credentials, or other credentials issued by an accredited educational institution.” Under the old definition, accredited investors needed to have either $1 million in net worth or a stable income of at least $200,000 per year.

This SEC rule has been under scrutiny in the crypto community for some time, as expanding the category opens the doors to many more people to invest in security token offerings, among other opportunities in the digital asset ecosystem.

Many prominent figures were quick to praise the decision including Gemini co-founder Tyler Winklevoss.

Zcoin founder Poramin Insom said the change would positively affect future security token offerings by potentially offering greater inclusion. “It will allow additional investors to pour into this essential market, helping smaller projects get off the ground,” he said.

Trading platform Uphold chief revenue officer Robin O’Connell said:

It’s great to see that the regulators are adapting. It allows for increased opportunity and access to investments that were previously just offered to the privileged few.

Not everyone was so impressed and some called for the agency to clarify how many investors will meet the new definition, which includes those “based on established, clear measures of financial sophistication.” Typically, financial sophistication refers to investors with a high net-worth and extensive experience in markets, but the SEC’s use of the term is still unclear.

“They are finally incorporating knowledge and sophistication, rather than net worth,” said Bitcoin (BTC) educator Anthony ‘Pomp’ Pompliano. “This is a step in the right direction but we need even greater access and broader rules.”

Celsius Network CEO Alex Mashinsky sai:

“99% of the population has been excluded from getting access to the best innovation this country has to offer, so the question now is whether the regulators will require accreditation for retail users to do what they already do or will the SEC let what is going on continue.”

Source link


Senate committee votes unanimously in favor of Yellen as Treasury Secretary




Janet Yellen, the former Chair of the Federal Reserve, is one step closer to earning the nomination of Treasury Secretary. 

The Senate Committee on Finance voted unanimously to approve Yellen’s nomination Friday morning, setting the stage for a full Senate vote. Republican Senator Chuck Grassley said he hoped the GOP’s backing would signal “bipartisan” support under the new Democratic administration.

Fellow Republicans said they backed Yellen despite disagreeing on several of her policy stances. The general consensus was that she was exceptionally qualified for the job.

Committee members hoped for a full Senate vote to confirm Yellen’s appointment on Friday but as of publication time, that has yet to materialize.

If confirmed as Treasury Secretary, Yellen would become a key member of President Biden’s Cabinet and will act as a principal adviser on economic issues and fiscal policy. She would also be the first woman to occupy the post.

At her Senate confirmation hearing Tuesday, Yellen called for “big action” on the Covid-19 crisis. She said:

“Economists don’t always agree, but I think there is a consensus now: Without further action, we risk a longer, more painful recession now — and long-term scarring of the economy later.”

Yellen headed the Federal Reserve between 2014 and 2018, becoming the first woman to do so. Under her leadership, the central bank made its first attempt at normalizing monetary policy — an initiative that was later curtailed under Jerome Powell.

The cryptocurrency industry has been following Yellen’s nomination process closely. The former Fed chief has given mixed signals on digital assets. On one hand, she has touted Bitcoin (BTC) and other digital assets as an important innovation in optimizing global transactions. On the other, she has raised concerns over crypto’s role in money laundering and illicit financing.

The final days of the Trump administration induced heavy anxiety for the cryptocurrency industry after then-Treasury Secretary Steven Mnuchin tried to fast-track new regulations targeted self-hosted crypto wallets.

In his first day in office, President Biden placed a general freeze on all federal-agency rulemaking, effectively blocking several Trump-era policies from advancing. The proposed crypto wallet regulation was among them.