Schiff Criticizes SEC’s New Crypto Trading Rules
Following the recent announcement by the United States Securities and Exchange Commission (SEC) on imposing new rules that would place under its supervision individuals trading cryptocurrencies, a famous Bitcoin (BTC) skeptic, Peter Schiff, has lashed out at the regulator.
The agency has recently adopted a 247-page rule that requires market participants engaged in certain dealer roles to register with the SEC. Under these new rules, individuals trading crypto assets, securities, or government securities with assets exceeding $50 million will have to become members of a self-regulatory organization and comply with federal securities laws and regulatory obligations.
Schiff’s Opposition to the Rules
Commenting on the development, economist and prominent Bitcoin critic Peter Schiff pointed out the lack of logic in the SEC’s reasoning for making its most recent decision. He highlighted that there was no law to support the regulator’s move.
Schiff has been vocal about his skepticism toward Bitcoin, arguing that it would ultimately collapse to zero. He also claimed that it would only reach $10 million by 2031 if the US dollar crashed like the German Papiermark.
Commissioner Peirce’s Dissent
However, not everyone within the SEC agrees with the new rules. Commissioner Hester Peirce questioned how many people would be affected by this rule and whether code writers would need to register. In response, she received an explanation that if someone writes software and uses it to deal with crypto securities, they would need to register.
Commissioner Peirce expressed her dissatisfaction with how her agency treated the crypto market and stated that carrying out these rules would be a significant implementation challenge.
During this exchange, SEC Chairman Gary Gensler mentioned a de minimis threshold of $50 million, referring to the amount of assets that the securities watchdog considers too minor to merit legal consideration.
Hot Take: SEC Faces Criticism for New Crypto Trading Rules
The recent announcement by the SEC regarding new rules for individuals trading cryptocurrencies has faced backlash. Peter Schiff, a well-known Bitcoin skeptic, criticized the agency’s decision, highlighting the lack of legal basis for its reasoning. Schiff has been vocal about his skepticism toward Bitcoin and believes it will collapse to zero.
Furthermore, Commissioner Hester Peirce expressed dissent towards the new rules, questioning their impact on code writers and expressing dissatisfaction with her agency’s treatment of the crypto market. The SEC Chairman, Gary Gensler, mentioned a threshold of $50 million for assets that are considered too trivial to merit legal consideration.
The SEC’s move has sparked controversy and raised concerns about the implementation and compliance challenges associated with these new regulations.
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