The venture capital firm reminded the key differences between securities and crypto assets.
As the SEC continues its persistent campaign against cryptocurrency, criticisms of the organization are growing. Web3 venture capital firm Paradigm released a policy paper on the issues with SEC registration on April 21.
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According to the article, Gary Gensler, the chairman of the SEC, “attempt to brute force crypto assets that may not even constitute’securities’ into an ill-fitting disclosure framework is bad policy.”
The company, which spends hundreds of millions of dollars into Web3 and cryptocurrency firms, claimed that the SEC does not give investors and consumers of crypto assets the information they need.
Additionally, it refuted the SEC’s assertions that it provides crypto businesses with a workable route to compliance.
The present disclosure policy, as noted by Paradigm, was created in the 1930s, long before the internet. It asserts that current regulations are “tailor-made for centralized companies issuing securities” and that the cryptocurrency markets are fundamentally different.
