US Securities Commission waves white flag on crypto firms 'leaving the US'...unveils relaxed fundraising regulations

▲ U.S. Securities and Exchange Commission (SEC), Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), Cryptocurrency Regulation/AI Generated Image

The U.S. Securities and Exchange Commission (SEC) has pulled out the card of easing capital raising regulations to reverse the exodus of cryptocurrency companies overseas.

According to BeInCrypto on September 3 (local time), SEC Commissioner Paul Atkins presented the newly proposed cryptocurrency asset regulations as a measure to revive capital formation within the United States. The core of the proposal involves two exemption systems that cryptocurrency companies can utilize when raising funds. Atkins argued that stringent regulatory enforcement over the past four years has pushed businesses and capital overseas.

Atkins pointed out that existing securities regulations failed to properly reflect the characteristics of cryptocurrencies. He criticized the SEC for undermining cryptocurrency capital formation in the past through litigation-centric regulatory enforcement and perfunctory registration requirements. He further emphasized that what founders needed was clear regulatory guidance, not legal battles.

He also put forward the realism that it is impossible to prevent U.S. investors from moving funds overseas. Atkins stated, “In the internet era, U.S. investors can send their funds anywhere,” and “They should be able to invest in the U.S. under U.S. law.” He argued that the more transactions and fundraising are blocked by regulations, the more related businesses will move overseas.

However, he believed that SEC's own regulations alone would make it difficult to secure long-term institutional stability. Atkins emphasized that Congress must pass the U.S. crypto market structure bill. This bill includes provisions to divide cryptocurrency oversight authority between the SEC and the U.S. Commodity Futures Trading Commission (CFTC). He explained that establishing a regulatory framework through law would make it difficult for future SEC leadership to reverse policies again.

Atkins did not view the SEC's regulatory reform and congressional legislation as separate tasks. He stated that both procedures are policies aimed at attracting cryptocurrency companies and capital that have moved overseas back to the United States. The SEC's regulatory easing plan and the fate of the U.S. crypto market structure bill have emerged as key variables that will determine the capital raising environment for the U.S. cryptocurrency industry.

[Article Key Summary]

-The SEC has proposed new regulations to expand capital raising for cryptocurrency companies within the U.S.

-SEC Commissioner Paul Atkins claimed that stringent regulatory enforcement over the past four years has accelerated the exodus of businesses and capital overseas.

-SEC regulatory reform and the U.S. crypto market structure bill are considered key variables that will determine the long-term regulatory framework for the U.S. cryptocurrency industry.

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