hello folks you have reached the
cryptocurrency portal and today I have
some exciting news I think because we
always talk about regulations and
regulatory clarity on this channel and
it looks like we have some glimmer of
hope that's coming out from the SEC so
let's explore this together
it says SEC crypto safe harbor could be
the most groundbreaking development for
the US markets as finance exec so the US
Securities and Exchange Commission er
says from the SEC Hester Pearce she is
presenting a new proposal on how to
regulate crypto currencies so first off
who is Hester Pearce so I went to the
security Exchange Commission and here's
her biography just so we know her
background it says Commissioner Hester
Pearce she was appointed by President
Donald Trump to this sec and she was
sworn in on January 11th 2018 so just a
little over two years on the Commission
and then prior to joining the SEC
Commissioner Pearce conducted research
on the regulation of financial markets
at the Mercatus Center at George Mason
University and she was a senior counsel
on the United States Senate Committee on
Banking Housing and Urban Affairs where
she advised ranking member Richard
Shelby he's a senator and other members
of the committee on securities issues
Commissioner Pierce served as counsel to
SEC Commissioner Paul Atkins she also
worked a staff attorney in the SE C's
Division of Investment Management
Commissioner Pierce was associate at
Wilmer Cutler Pickering now Wilmer hail
and clerked for judge Roger and a well
of the Court of Federal Claims
Commissioner Pierce earned her
bachelor's degree in economics from Case
Western Reserve University and her juris
doctorate from Yale Law School obviously
an incredible background a varied
background well schooled amazing
individual hats off to you Hester Pierce
so back to what she's saying about this
new proposal on how to regulate
cryptocurrencies it says under her plan
United States regulators would
dramatically shift how they are
attempting to regulate blockchain based
digital assets they would no longer
classify them as financial securities at
least not initially currently only a
handful of cryptocurrencies are exempt
for u.s. securities laws including
Bitcoin and ether well there have been a
few exceptions to the rule the SEC
maintains that the risk is quite high of
an initial coin offering being
classified as a security under Pearce's
let's say safe harbor proposal however
companies that issue digital tokens will
get some breathing room so they can
establish their networks and communities
before dealing with regulatory
requirements which which makes sense the
folks because it like it says it gives
them some breathing room gives them time
to develop their network and get their
message out and build stuff before the
crush of compliance and regulations come
down we need regulatory clarity for the
space but at least this gives them
breathing room and then they know what
the lay of the land will be in the
future
so speaking on Thursday at the
International blockchain Congress in
Chicago so we see this on Twitter it
says right from the Chicago blockchain
you can follow them on Twitter you can
see their Twitter handle us at CH I
blockchain it's at the International
blockchain Congress 2020 and there's
Hester Pierce herself as decentralized
networks are a powerful societal asset
described SEC Commissioner Hester Pearce
this morning while outlining her token
safe harbor plan at block rest which
were going over to her token safe harbor
plan so as she was speaking Pearce
explain how crypto related firms will be
granted a three-year grace period from
the launch of their first token sale to
reach a certain level of
decentralization if achieved such tokens
would no longer meet the SEC criteria
for being classified as securities under
the federal securities law several
leaders in the crypto space are
applauding the commissioners approach
and we're applauding it here as well so
it's awesome to see just kind of forward
momentum even if it's just baby steps
they're applauding the commissioners
approach to regulating the new industry
with a light touch that doesn't drive
entrepreneurs out of the country in
search of government's with a more
flexible framework for tech innovation
that's so true we always again we always
talk about on this channel it's like if
the United States doesn't get regulatory
clarity out there they're gonna lose out
on these entrepreneurs that are
innovating they may flee to other
countries and take their tech to other
countries take the jobs to other
countries in the United States could be
left behind so it's good that they're
making this baby step says Katherine
hooli who is the CEO of Finance United
States and her quote is if adopted the
proposed safe harbor could be the most
groundbreaking and development for the
United States cryptocurrency market to
date by putting development first in
giving Project Runway to build robust
networks the proposed safe harbor puts
an important stake in the ground towards
supporting American access and
acceptance of digital asset markets in
the long run it will help bring more
Americans into digital asset trading in
foster greater market network
participation great quote there in the
long run it will help bring more
Americans into the digital asset trading
in foster greater networked
participation here here Thank You
Katherine Cooley
the proposal underscores how a
blockchain project arrives a
decentralization it needs time
developers users use cases steady
adoption you can see all of the
headlines that are slowly coming out in
the crypto space there's a steady
adoption but they're all weary of just
regulations now according to the
proposal it does say the analysis of
whether a token has offered or sold as
to security is not static and does not
strictly adhere to the digital asset so
while some tokens might have the
characteristics of a security when they
first introduced their fluid and their
purpose can evolve as their networks
expand Steve cockiness CEO of blockchain
Protocol al-quran calls the formal
proposal an important step and his quote
is the blockchain industry and
regulators need to continued a healthy
dialogue for the United States to truly
become the global and responsible leader
in the
chain innovation adds Katy gibart
general Council of institutional crypto
custodian Anchorage the quote is we urge
the Commission to move promptly to adopt
it and to consider other innovative ways
to increase investor choice in the
digital asset space it goes on to say if
Pierce's proposal is accepted then it
could establish strict rules for crypto
and blockchain projects when raising
capital via token sales including
issuing requirements for personal
disclosures source code disclosures
appropriate public announcements and a
public list revealing the identities of
the ICO team members the idea is to
protect the consumers we'll also create
an environment that allows innovation to
flourish that's a perfect way to say you
know protecting consumers that's the
primary thing you need to protect the
consumers but you also want to create an
environment that allows the innovation
like it says here to flourish let the
innovation flourish create these
projects protect the consumers and have
the correct guardrails in place so this
space can flourish and the quote here is
the definition of network maturity for a
cryptocurrency is intended to provide
clarity as to when a token transaction
should no longer be considered a
security transaction but as always the
analysis will require an evaluation of
the particular facts and circumstances
Pearce acknowledges that the success of
the safe harbor proposal depends on
token issuers acting in good faith and
it does not undermine any necessary
enforcement action against fraudulent
ICS or other illegal activities so great
momentum in the space great to see I'm
glad this was set to me as kind of a
heads up to do a little video on this so
I deeply appreciate that so here was
another article that we saw which I
thought was pretty interesting SEC
Commissioner Hester price
Pearce wants to give legitimate crypto
projects a shot a success without
running afoul of US securities so again
to your official at the SEC and she's
nicknamed crypto mom by the blockchain
community
see she has formally proposed a safe
harbor tokens like we said that's great
so let's go here it says to date the SEC
has brought enforcement actions against
a number of companies that created and
sold tokens including telegram and kik
two major messaging platforms so the
analysis of whether tokens offer sole
security is not static and is not
strictly adhere to the digital assets we
went over that earlier so here it says
ether the native token of the ethereum
blockchain may be one such example SEC
Director of corporation finance William
Heinemann speaking on his own behalf and
out the agencies back in June of 2018
said ether by that point did not appear
to be a security an SEC chairman J
Clayton later appeared to endorse this
view writing that digital assets could
at some point no longer be investment
contracts so it's very interesting I
just want to kind of go over that
especially with what Hester Pierce has
proposed with this three-year safe
harbor period for token sales the last
thing I want to go over since we're
talking about
Hester Pearce this article is a couple
weeks old but she says her
self-regulation can stifle the creative
juices in people so in a different event
a few weeks ago she said she was and she
invited the audience to talk to her
directly to block land solutions event
in Cleveland Ohio and she explained how
she got the nickname of crypto mom but
those weren't the best parts the main
attraction of the December 9th fireside
chat were her thoughts on challenges of
regulatory compliance in a time of rapid
innovation and it says here policy
doesn't change from administration to
administration said peers who finally
recalled her hometown roots as a 1993
graduate of Case Western University as a
regular we need to learn from and adapt
to new technology here here so I'm glad
that you know we have crypto mom here on
the SCC she seems to be Pro crypto I
would say obviously she's Pro crypto
were very appreciative of what she has
proposed with this three heart a three
year safe harbor proposal so thank you
so much for tuning in
cryptocurrency portal day please leave
your comments in the comment section
below what you think about what Hester
Pearce is trying to accomplish what you
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