“I am one of five votes every time the SEC decides to bring charges against a company we determine has made any untrue statement of a material fact, violated Regulation D, or failed to restate its financial statements when required.
One might think I would be capable of understanding the risks of a private investment opportunity and recognize the information I would need to make an informed decision.
Yet, I am not an accredited investor…
More strikingly, many of the expert staff of the SEC who review, promulgate, and enforce our securities laws would not qualify (based on the income threshold) as an “accredited investor” and would still be deemed to require the protections of registration under the Securities Act of 1933. Based on this outcome, I wonder whether we have missed the mark,” emphasis his.
So said the new chair of the Securities and Exchanges Commission (SEC), the most powerful economic regulator in the United States after the Treasury and the Fed.
Elad Roisman is now to temporarily head the institution until the incoming president, Joe Biden, makes a nomination following the resignation of Jay Clayton.
Roisman has been at the SEC for about two years during which time he has been somewhat quiet as far as this space is concerned, but he appears to be on a mission.
“There’s a perception that the markets are rigged against the little guy and I think it’s important for the SEC to try to dispel that notion,” Roisman said at a confirmation Senate hearing back in 2018.
Numerous scandals proving such rigging in court, including Libor, the gold price rigging, the rigging of foreign exchange rates, and a long list of other assets, has led to this not being quite just a perception, but more a reality.
Much of that however is against the law at least on paper. While the ‘accredited’ investors exception is enforced by the power of the law on even people like Roisman, the Chair of the Securities and Exchanges Commission.
The absurdity of that he has articulated himself. As such, all will now look to see what he does about it as he takes charge of an institution facing a backlash from angry XRP investors who have lost billions, and faces a rock bottom reputation due to it telling the public they won’t innovate for you.
Roisman however appears to suggest there is a need for innovation, and thus a new chapter may well open at the towers of SEC and their command of a $20 trillion economy.