• Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics
Subscribe
  • Login
  • Register
No Result
View All Result
  • Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics
No Result
View All Result
No Result
View All Result

DeFi Thirsty SEC Blocks TradFi Crypto IPOs

25/01/2023 14:35
No comments
Gary Gensler

Gary Gensler

The Securities and Exchanges Commission (SEC) wants our defi smart contracts, flashloans, and kids in Thailand forking dapps through token migration, to sign up with the agency.

But SEC has failed to approve even traditional crypto companies to go public, let alone these bleeding edge tech startups that it wants to oversee.

WSJ reports SEC has blocked Bullish Global, Circle Internet Financial, eToro Group and Galaxy Digital from going public.

They point out that Coinbase received only three letters from SEC with questions prior to its Initial Public Offer (IPO) in April 2021.

In contrast Bullish Global, a crypto exchange that handled close to $1 billion in trading volumes in the past 24 hours, received ten letters.

They announced their intent to go public through a special purpose acquisition company (“SPAC”) in July 2021, but SEC has still not deemed their company disclosures “effective,” allowing them to IPO.

Circle, which manages the USDc stablecoin with $43 billion in assets under management, saw their SPAC deal fall through because SEC did not approve within the time period required by the SPAC, which had a time limit of December 2022.

Circle had to deal with more than 100 questions by SEC, and they were almost ready, but another 16 questions followed in November, so the deal was called off last month.

“Unfortunately it was a longer process than we had hoped,” Circle’s CEO Jeremy Allaire said at the time.

Mike Novogratz, the CEO of Galaxy Digital asset management, was more direct last year when stating that it has “been frustrating that it’s taken as long as it has.”

Galaxy had to answer 90 questions since filing for an IPO in October 2021 with it already trading in Canada, but still has not received approval in US.

“Anyone bringing a crypto deal to the SEC should realize there is going to be a lot of friction,” said Scott Kimpel, a partner at law firm Hunton Andrews Kurth LLP.

SEC however is meant to only check whether a prospectus is published in line with requirements, not pass judgment on whether it is a bull or a bear market and therefore whether it should be three letters or ten letters.

They probably don’t intend to stop these IPOs however and may eventually approve, but the repeated round of questioning has led to some of these IPOs falling through.

This sort of delay applied to the defi space would bring the neck-breaking innovation there come to a standstill, the same defi space that continues to provide the same services as FTX or Genesis, but without going bankrupt and without stealing anyone’s funds.

That sort of innovation benefits the public and fundamentally. Making SEC judge, jury and executioner of it, when they can’t even handle their own tradefi companies, may well leave the public with only the FTX sorts.

FTX claimed and rightly so that they were the most regulated crypto exchange. Such regulation however did not prevent the abuse of trust that led to their bankruptcy.

Innovations like smart contracts and defi have prevented such abuses because they have turned the custodian into the code.

That makes them fundamentally different, and therefore many dispute whether SEC has jurisdiction at all because a smart contract is not an entity as traditionally defined.

SEC therefore should focus on doing its actual job, which is regulating the stock market, preferably without years of delays to bring innovation to it, rather than thirsting over what it can’t have: regulating our code.

Related Posts

The PBoC printer as of Jan 2023

Did China Print Half a Trillion?

UK starts training Ukrainian troops on Challenger tanks.

World Holds Breath For Russian Surge

MicroStrategy Increased Bitcoin Holdings

BlackRock ETF Tokenized on Uniswap

Load More
  • Trending
  • Comments
  • Latest
UK starts training Ukrainian troops on Challenger tanks.

World Holds Breath For Russian Surge

Backed Finance tokenizing stocks, Feb 2023

BlackRock ETF Tokenized on Uniswap

A Nationwide bank branch

Nationwide Restricts Payments to Binance

MicroStrategy HQ

MicroStrategy Increased Bitcoin Holdings

The PBoC printer as of Jan 2023

Did China Print Half a Trillion?

UK starts training Ukrainian troops on Challenger tanks.

World Holds Breath For Russian Surge

Crypto art

Can Ethereum’s Variable Tokenomics Address Inflation?

MicroStrategy HQ

MicroStrategy Increased Bitcoin Holdings

Comments

Latest News

  • Bitcoin Resilient at $23,000
  • Did China Print Half a Trillion?
  • World Holds Breath For Russian Surge

About Trustnodes

Terms of Service

Privacy Policy

Our Ethics and Values

Trustnodes Newsletter

(You have to be a paid subscriber)

Trustnodes © 2017-2023. All Rights Fully Reserved. For any Enquiries contact@trustnodes.com RSS Feed

No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics

Trustnodes © 2017-2023. All Rights Fully Reserved. For any Enquiries contact@trustnodes.com RSS Feed

Welcome Back!

Login to your account below

Authenticate with MetaMask Loading...

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?