A new proposal from the US Securities and Exchange Commission (SEC) to the White House may influence how federal securities regulations govern cryptocurrencies.
Interpretive guidelines about the application of current securities laws to cryptocurrency assets are included in the proposal. The regulation of prediction markets, a quickly expanding industry where users wager on actual events like elections or economic outcomes, is also covered.
The idea comes after months of deliberations between politicians and regulators over the creation of more precise regulations for the digital asset sector. SEC Chair Paul Atkins previously announced that the agency plans to establish a token taxonomy to categorise different types of bitcoin assets.
These categories could be helpful in determining whether a digital asset is subject to SEC or Commodity Futures Trading Commission (CFTC) regulation. This distinction is important because it affects how companies operate in the marketplace and reveal information.
The proposal may be more significant than staff recommendations if it is accepted, but the SEC is not required to publicly vote on it.
In the meantime, the CFTC is getting ready to create its own prediction market regulations. The agency will set precise guidelines for what goods can be sold in regulated markets, according to Chairman Michael Selig.
However, critics remain concerned. A coalition group called “Gambling is Not Investing” claims that prediction markets must follow state gaming laws because they could encourage illegal sports betting.
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