The appointment of Paul Atkins as the new chairman of the American Securities and Exchange Commission (SEC) marks a change of course that can affect both the cryptomarkt and the private markets. Atkins is no stranger within SEC, with experience as a commissioner during the years 2002 to 2008. His return promises a more market -oriented approach to supervision and regulations.
New wind around cryptocurrencies
One of his most important goals is to offer a solid regulatory foundation for cryptocurrencies, with a rational and coherent approach. Atkins wants to make the United States the safest and most attractive place to invest and do business.
“SEC chairman Paul Atkins will be good for Bitcoin,” wrote Michael Saylor of the world’s largest listed Bitcoin holder Strategy.
Stablecoins that are linked to the dollar are now explicitly falling out of the SEC. This offers more leeway for innovation within the sector, although questions about transparency and protection of investors are up to date.
More room for the small investor
A second focus area is making private markets more accessible for private investors. The current definition of an ‘accredited investor’ may be relaxed.
That could mean that more people, even without high income or large assets, can participate in promising but difficult to access investments. A model is considered whereby a limited amount can be invested annually, comparable to existing crowdfunding rules.
In addition, products that combine private credits with listed investments are being taken more and more seriously. The success of comparable investment products shows that the interest is great, especially now that alternatives to listed shares are becoming increasingly attractive.
Let companies operate in private life for longer
Finally, the SEC wants to make it more attractive for companies to stay private. Not every company benefits from the costs and obligations of an IPO. With relaxation of rules on alternative forms of financing such as Regulation A and Shelf Registrations, it can be easier for smaller companies to pick up capital without a listing on a trade show.
The emphasis is on less paperwork, lower costs and more flexibility. Commissioners such as Hester Peirce and Mark Uyeda have been arguing for these changes for some time and now find hearing under the new management.
With Atkins at the helm, there may be more room for market forces and less emphasis on regulating. Anyone who invests in cryptocurrencies, private funds or is looking for growth companies that operate outside the stock market will do well to follow these developments sharply.
Source: https://newsbit.nl/sec-onder-paul-atkins-duidelijke-cryptoregels-meer-beleggerskansen/
