Think tank calls upon SEC to start regulating crypto sphere

Brooking, the US think tank Economics study program claims in a report that improvement in regulation will prove beneficial to the crypto asset industry, stating that currently there is a jurisdictional gap in which the crypto industry falls.

The report establishes that cryptocurrency on its own is unstable and insecure, demanding regulation and clear legislation around it. It further goes on to discuss the crypto asset intermediary regulation which is considered a separate problem by Winklevii.

Regulation of digital assets is expected by the Brooking report to promote the development of novel technology, profit cryptocurrency investors, decrease cyber-attack risks and protect the use of crypto assets for illegal payments.

The finger is again pointed at Bitcoin, stating that it failed to provide a reliable and secure environment that was promised. The crypto-assets that were meant to fill in gaps that existed in the banking system, are claimed by some to have created financial intermediaries which are unreliable and cannot be held accountable.

This is in fact not true as there is a huge industry forming around digital assets. Bitcoin merely provided a trustless method of performing transactions between peers.

The report claims that crypto exchanges are not liable to follow conventional standards mandated by securities and market intermediaries, mentioning that SEC holds jurisdiction over the digital assets that are considered as securities. Similarly, the (CFTC) Commodity Futures Trading Commission is mentioned in this report to have authority over trading platforms for derivatives like swaps or futures.