Recently it became known that the United States Commodity Futures Trading Commission (CFTC) did not accept the Freedom of Information Act (FOIA) application for an agenda that was received by Bitfinex and Tether. Jay Clayton, who is the Chairman of the US Securities and Exchange Commission (SEC), noted that the regulatory body will not make any changes to the current legislation on valuable assets in order to effectively avoid possible risks associated with cryptocurrencies. Maria Vullo, who holds the post of Financial Services for the State of New York, paid tribute to the measures taken to manage the CFTC and SEC in the field of primary coin contributions. In the meantime, the SEC elected Valerie Szczepanik as a new Senior Advisor for Digital Assets and Innovation of the committee.
Freedom of Information Request was Rejected by CFTC
The media made public the news that the U.S Commodity Futures Trading Commission did not accept an interpellation regarding the Freedom of Information Act for access to the writs that were delivered to Bitfinex and Tether on December 6.
On June 5, FOIA made a request for both “the writs published to Ifinex inc. (usually called as Bitfinex) and its branch corporations and the writs published to Tether Limited and its branch corporations.”
The unnamed person who filed the request says that the CFTC has found “a huge number of reports that do not fall under the requirement of declassifying FOIA information.” He also added that “there are reports that are free from declassifying under FOIA Exemption 7(A), 5 U.S.C. § 552(b)(7)(A), inasmuch as declassifying of such information can be considered as a direct invasion of the activities of law enforcement bodies of the Commission.”
The CFTC also announced, “Some reports were transmitted on the grounds that the agency bears full responsibility for the confidentiality of the source that gave the information. These reports are free from declassifying under FOIA Exemption 7(0), 5 U.S.C. § 552(b)(7)(D). Such a measure was taken to convince “the sources in their full protection and confidentiality, and the lack of pressure from any bodies that conduct cases of the disclosure.”
SEC Refused to Change Securities Regulations to Service Cryptocurrencies
Following a recent interview with CNBC, it became known that Jay Clayton, known as the Chairman of the US Securities and Exchange Commission, reacted as negatively as possible to the request for a certain number of changes to the current legislation regulating the securities policy to simplify the rules regarding the cryptocurrencies. Mr. Clayton said, “We have no plans to make any changes to our already well-established safety determinations, which we have been maintaining for a long-term. Everything is working properly, and there is no need to change anything.”
The SEC Chairman also tried to introduce some clarifications into the jurisdiction of the regulator concerning currencies of the virtual world. “Crypto-currencies represent an alternative to self-managed currencies, such as the familiar euro, dollar, and yen. This kind of currency does not apply to securities. The digital asset, called a token, that contains a certain amount that I give you, and with which you can make transactions, but instead of the money you are familiar with, I give you the opportunity to “receive income”, which in its essence is the security for which we are responsible and which we can control. We are responsible for the complete regulation of the offer of this security, and we also regulate the trade of this security.”
New US Authorities for ICO Regulations
Recently, the event “Legal Tender? The Regulation of Cryptocurrencies”, which was organized by the Council on Foreign Relations, was held. At the event, Maria Vullo, who holds the post of the Superintendent of Financial Services for the State of New York, was fully satisfied with the measures taken by the US authorities to adjust the ICOs (initial coin offerings).
Mrs. Vullo said, “I believe that the SEC made every effort to qualitatively adjust the sales of token”. She also added, “This type of service is in no way inferior to other types of banking services, where you can meet state regulators, moreover, you are provided with public companies that are also controlled by the SEC and the CFTC.”
Mrs. Vullo stressed, “I believe that many of these token sales are in confrontation with the essence of the law. But we should be very attentive and careful not to merge them all and consider them as something one whole.”
Valerie Szczepanik was Named a New SEC’s Senior Advisor for Digital Assets
The SEC has elected Valerie Szczepanik as the new Senior Advisor for Digital Assets of the regulator, as well as Associate Director of the Division of Corporation Finance. Mrs. Szczepanik began cooperation with the SEC in 1997, having recently joined the position of Assistant Director in the Division of Enforcement’s Cyber Unit.
Chairman Jay Clayton said, “Valeri’s management and credibility in this field were appreciated both within the Commission and among inner and external financial regulators in the USA. Thanks to the high professionalism, solid experience and full awareness of the need to maximize and encourage innovative ideas related to the protection of investors, Val is a reliable, correct and responsible person who is dedicated to directing our forces and efforts in this constantly changing field in the right direction, which is full of different risks and perspectives.”
Ms. Szczepanik declared, “I am happy to be in a new position, sustaining SEC’s progress in working with advanced ideas and numeric assets, as it takes a significant function in contributing capital development, improving investor protection, including investors from Main Street, and forming equitable, regularized and productive markets. I am determined to operate tightly with our reliable regulatory partners, agency staff and, of course, the community, as this will improve all matching processes and achieve high results from our tactical plans.”