• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
SEC Crypto commissioner cryptocurrency regulation
Nexo

Update: Crypto Mom On BlockFi Case, $100M Fine Seems “Disproportionate”

Reynaldo Marquez by Reynaldo Marquez
3 months ago
in Crypto News
0

As Bitcoinist reported earlier today, crypto lending platform BlockFi will pay $100 million in fines per an agreement reached with the U.S. Securities and Exchange Commission (SEC). According to the regulator, BlockFi was offering financial products which have been classified as unregistered securities.

Related Reading | Why SEC’s Gensler Views on Crypto Are More Than ‘Disappointing’

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

U.S. SEC Commissioner Hester “Crypto Mom” Peirce published her views on the BlockFi agreement with the regulator. Peirce asked the question of whether the regulator is taking the “best” approach to protecting consumers, and immediately replying: “I do think it is, so I respectfully dissent”.

The Commissioner is well-known for trying to propose a regulatory path that enables crypto companies and investors to operate in the U.S. and expand current laws to fit and better regulate this industry. In that sense, she called the $100 million in penalties to be paid by the lending company “disproportionate”.

Peirce added that the fines will be divided into $50 million to the U.S. SEC, and $50 million “in connection with state settlements for the same conducts”. The Commissioner believes that these fines are usually imposed to deterred companies from committing bad conduct, but that there is no evidence that claims the company failed to fulfill its obligations with its clients.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

As part of the agreement, BlockFi filed an S-1 Form. Once it becomes effective, the company will need to become more transparent under the SEC’s regulatory framework, but Peirce claimed the following:

it is still worth asking whether a framework other than the securities regulatory framework might be better suited to getting customers transparency around the terms and risks of crypto lending products. Applying the securities regulatory framework has consequences, some of which may be unfortunate.

A Good Precedent For Crypto, Why The Case Matters For The Entire Industry

Amongst the unfortunate consequences, Crypto Mom believes the U.S. retail investor might be unable to access lending products based on digital assets. BlockFi itself will be unable to take on new clients until its S-1 form becomes effective, a process that could extend for months or beyond.

In addition, BlockFi and any other lending program looking to provide services in the U.S. will need to complete other requirements before relaunching their lending programs. BlockFi could successfully fulfill the requirements, Peirce mentioned that crypto companies could find obstacles as the sector is heavily put under scrutiny, smaller operations might fail. The Commissioner added:

We often tell companies wanting to offer products that could implicate the securities laws to “come in and talk to us.”  To make that invitation meaningful, however, we need to commit to working with these companies to craft sensible, timely, and achievable regulatory paths.

On the other hand, Jake Chervinsky, Head of Policy at the Blockchain Association, believes BlockFi reached a “good” deal with the U.S. SEC. Via Twitter, the expert claimed the lending company reached an agreement with could set a precedent and provide regulatory clarity for the crypto industry, and allow similar companies to operate in compliance with U.S. law.

Related Reading | David v. Goliath, How Ripple Is Winning The Case Against The SEC

Emphasizing the relevance of today’s event, Chervinsky said:

Look, you can hate the SEC all you want & think the federal securities laws as a whole shouldn’t exist, but the reality is, if you want to be a centralized financial institution offering centralized products to US retail customers, you’ll have to deal with regulation, full stop.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Reynaldo Marquez

Reynaldo Marquez

Related Posts

DAO

DAO For Abortion, Anyone?

47 mins ago
Goldman

Goldman Sachs And Barclays’ Investment In Elwood Tech A Major Triumph For Crypto Adoption

1 day ago
crypto

Crypto Regulators From 5 Countries Identify A Potential $1 Billion Ponzi Scheme

2 days ago
Kraken

Kraken CEO Shuts Down San Francisco Headquarters – Here’s Why

2 days ago
Stablecoins

Stablecoins Receive Queen’s Blessings As UK Braces For Landmark Crypto Legislation

2 days ago
LUNA

LUNA Investors ‘Suicidal’ After Crypto’s Collapse – Do Kwon Says He’s ‘Heartbroken’

3 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.