The so-called “Crypto Mom”, who earned her nickname because of her ardent support of cryptocurrencies, has a new plan to let firms move these digital assets. It appears to be a long shot, but it will be worth keeping an eye on it.
The woman has been called the “U.S. Securities and Exchange Commission’s loudest crypto advocate” and her plan is to get around tough rules for cryptocurrency. She put a new proposal up on Thursday, Feb. 6, which asks for securities rules to be held off for the next three years, during which time coins can still be traded. Both brokers and exchanges, under this proposal, would be exempt from many of the strict regulations that apply to other types of trade with different securities and with stocks.
The most famous example of a cryptocurrency is bitcoin, but there are many others. They are essentially a type of online currency that can be bought and sold; they’re often used exclusively for trading, but there are also ways to buy products and services with them over the net.
Essentially, the proposal amounts to little more than a grace period for cryptocurrencies. It is perhaps unlikely to go through because one of the biggest complaints about these currencies is their lack of structure and regulation. They’re still a very new commodity, and some see them as a high-risk investment because of it.
While this proposal may not amount to much in the long run, it still shows how big changes could be on the horizon and why it’s important to pay close attention to all securities law updates. The world moves quickly and regulations often struggle to keep up.