As much as we try to aim for a more orderly world, the truth is human beings don’t necessarily like being controlled. The idea of being able to function within a limited capacity has, unsurprisingly, never enthralled people who love their freedom more than anything else. However, there is little that can be done here. After all, time and again, we have shown a tendency of acting in a way that’s detrimental on a big scale, therefore prompting the governing forces to establish a closer look of our activities. They, of course, achieved that through dedicated regulatory bodies. The addition of close regulation across various sectors ended up having just the impact you would imagine. Suddenly, the industry players were facing a tighter wriggle room to get around, but as it turned out, it wasn’t enough to entirely shut down the unscrupulous side of the things. Somehow, these companies would find a way to bypass the regulations, and the said attempts only grew in number once technology entered the picture. The digital realm and all its intricacies offered the perfect protective blanket to hide away such breaches, and companies took this chance with both hands. Nevertheless, even though a bit late to the party, the regulators are now finally gaining a steady grip of everything that comes with becoming a tech-driven generation. Next up, they plan on taking the control back from the rule breakers, and their latest decision does a lot to show their resolve.
The Securities and Exchange Commission of U.S. has decided to stop the registration of two new digital tokens put-forth by American CryptoFed. According to some reports, the decision was taken on the basis of insufficient and misleading information, which concerned areas like company’s business, management condition, as well as the financial state of affairs. Submitted on 16th September, the registration application requested approval for tokens Ducat and Locke as equity shares, and if SEC hadn’t taken any action, these tokens would have become effective this month. However, now they remain untradeable until the authority’s information-related obligations are duly fulfilled.
American CryptoFed’s CEO, Marian Orr has responded to the decision by openly rebutting all the points raised by SEC.
“The purported ‘deficiencies’ the SEC referred to were the lack of attributes inherent to securities. These are attributes that the two tokens … of a decentralized blockchain-based CryptoFed DAO monetary system will never have. The SEC refused to respond to our rebuttal, although we repeatedly asked for their written response,” said Marian Orr
Interestingly, this call from SEC comes soon after Gary Gensler, SEC chairman, talked about an intention to bring digital currency under the regulator’s investor protection framework.