The SEC Commissioner proposed an alternative “bridge” instead of “safe harbor”. To determine the compliance plans, the SEC and crypto firms would work together.
Caroline Crenshaw strongly stated that the safe harbour initiative could have increased the problems similar to ICO during the initial 2017-2018 years.
In the annual event in the month of October, “SEC speaks”, the commissioner posted the speech on the official SEC website on the 12th of this month. The argument clearly states that the impact on crypto investors would have been far worse if safe harbor was implemented.
As per the safe harbour provisions proposed by SEC Commissioner, Hester Peirce, The implementation would allow the network developers to enjoy a grace period of three years for building a decentralised network. The network developers could enjoy this duration without fearing any legal actions by the SEC. but the provision has not been accepted by most commissioners.
The revised provisions of the safe harbour law were presented in the month of March by Peirce. Patrick McHenry, the house representative at North Carolina also presented a similar three-year proposal in the draft bill.
Crenshaw has emphasized that the safe harbour implementation puts the crypto investors at greater risk. Instead of bringing compliance to the crypto domain, the capital would suffer great risks. The loss chances would increase since the tokens of crypto won’t follow the SEC jurisdiction for multiple years.
Crenshaw has suggested that a bridge is required wherein the crypto token issuers and companies would work alongside SEC and ensure regulation of compliance laws. She also believes that one can promote innovation by the active participation of Market participants as well as maintaining the integrity of the market. It is also important to ensure the protection of investors while the new crypto markets continue to grow.
She further adds that if someone falls within the jurisdiction, they can describe the work and plan according to the compliance and also explain the appropriate exemptions.
