Regulators Striving to Meet Up With Changes in Digital Assets and Cryptocurrency
Market regulators are likely to be faced with the challenge of meeting up with technological advances while seeking to shade investors from possible losses, said Robert Jackson, U.S. markets regulator. As per Reuters on Monday, Jackson, who's also a commissioner at the United States Securities and Exchange Commission (SEC), said the agency is looking to enact rules to help keep up with rapid growth and advancement of digital assets and cryptocurrencies. Jackson noted that the SEC also faces challenges from a computer-driven investment advisor, particularly the "Robo advisors." it's algorithms that assist people in making investment decisions.
"I know what it looks like when a human being commits fraud. It's a lot harder to detect when an algorithm defrauds the investors. But investors deserve no less protection simply because money is being moved around by an algorithm." the regulator told an Israel Securities Authority conference.
While trying to emphasize on the matter, Jackson, disclosed that there were 4,000 lawyers at the U.S SEC; however, only a few programmers could be able to explain how algorithms work and possible risks they pose to investors.
"In 20 years we may need to be an agency of 2,000 lawyers and 2,000 programmers," Jackson added.
For cryptocurrencies, the regulator further noted that the agency struggles in regulating crypto-related assets, which he said are "exciting but come with risks." The aim is to ensure the asset class doesn't become associated with fraud, while also guaranteeing that investors are safe.
Also, the SEC is worried over the fact that technology innovators prefer private markets to raise large amounts of capital, over public ones. According to the regulator, this is because company founders derive the freedom to run their firms with less need for accountability and transparency.
Jackson says it poses a problem, given that, ordinary investors may be closed to many new technology companies.
"We might create a system of public companies that are not exciting. Instead, that growth is reserved for a small section of society that can invest in private markets. That can be very unhealthy," Jackson said.
He further proposed to improve disclosure from private companies by investing through intermediaries. However, this means that Investors will have to pay more but have a lower risk.
About The Author
Ibiam WayasIbiam Wayas is an optimistic crypto news reporter who also enjoys tech writing. He is an introvert who spends much of his time on the internet studying facts that will help him excel in the digital/cryptocurrency space.
Ethereum Foundation's Donation Might Have Pro...Shailesh Panwar 13:34 PM 24 Feb 2020
Banks Should Dig Into Digital Currencies: Ban...Zain Raza 13:54 PM 24 Feb 2020
Binance Partners Epay To Support Transactions...Tarulika Jain 13:44 PM 24 Feb 2020
Perth Mint Gold Token Debuts On Crypto Exchan...Tarulika Jain 10:43 AM 24 Feb 2020
Sia Network's Skynet Promises to Bring True D...Prashant Jha 13:03 PM 24 Feb 2020
Tax Experts in Korea Advise Government on Low...Ibiam Wayas 13:00 PM 24 Feb 2020
‘The Simpsons’ Latest Episode About Block...Jyoti Singh 13:04 PM 24 Feb 2020
MoonPay and IOTA Foundation Work Together to ...Yvette Mwendwa 13:07 PM 24 Feb 2020
G20 Finance Ministers Emphasize Significance ...Yvette Mwendwa 10:29 AM 24 Feb 2020
Menny Barzillay: Bitcoin (BTC) Is Strongest D...Tarulika Jain 10:31 AM 24 Feb 2020