SEC-Retail Failing: How the SEC Is Shutting Down Crypto
This is not a surprise, and there should be no doubt about it, because history has shown that the Securities and Exchange Commission’s screen is certainly visible when it comes to investor protection. effectively implemented as a vision of He is considered the watchdog of Wall Street but he is more like the lapdog of Wall Street.
For example, if we take the collapse of Enron in 2001, we will find that the Securities and Exchange Commission did not review the matured financial formalities of the company for at least 3 years before the collapse and 6 years after the collapse of the Securities and Exchange Board of Wall Street. The completely laissez-faire approach of the End Exchange Commission may have caused or returned the worst financial crisis since the Great Depression. In the crash years of 07-08, experts and whistleblowers were warning about the dangers of subprime mortgages and the risky practices of lenders. Despite having the power to supervise investment banks, the Securities and Exchange Commission has made no concerted efforts to protect millions of investors.
Then there’s the Madoff Ponzi scheme, which of course fooled onlookers and stole billions of dollars from them and the Securities and Exchange Commission investigated its business practices but failed to uncover the fraud when it came to investigate. Madoff was certainly able to continue his scheme to an audience until the bubble burst in 2008, and now we have many more examples including the FTX and Alameda heists last November that bailed hundreds of thousands of clients out of jail. Despite clear indications that the Securities and Exchange Commission had an opportunity to make a save, he did not, and instead continued to meet with SBF, the former CEO of FTX, behind closed doors to private entities. It is especially noteworthy that the father of Alameda’s CEO, Glen Ellison, was the boss of the chairman of the Securities and Exchange Commission at MIT.
If we look at the reason why the Securities and Exchange Commission fails every time, there may be a clear reason why it tends to focus on small and insignificant matters rather than on systemic issues. keeps. When you’re the bully, it’s certainly easier to pick on the younger kid at school because they get your point easily because of their childishness.
For example, we have seen the Securities and Exchange Commission consider technical violations of securities while failing to intervene in major frauds like FTX and they have observed it after relatively small projects. The commission knows it has the resources to go after smaller projects and that’s why it’s an easy win and great PR for them. This does not mean that smaller matters should be ignored, but that the Securities and Exchange Commission should try to strike a balance between the two. Another way could be that the Securities and Exchange Commission is not properly equipped or prepared to handle these matters and the SEC budget compared to the exponential growth of the crypto markets since 2017 And staffing has tended to be fairly stable in recent levels and they may struggle to keep up with the rapid pace of change. Possession is aided by what he is actually able to control. It’s no secret that the Securities and Exchange Commission’s Financial Enterprise There is a very close relationship with the industry. In fact, many of its top executives come from Wall Street firms and often return to industry after leaving the Securities and Exchange Commission (Mary Jo White, former head of the SEC, now represents Ripple against the SEC). This revolving door certainly creates a conflict of interest and a lack of oversight in the industry and it is not at all an impossibility to imagine that someone in government was affected by the crypto exchange collapse that occurred in November. And that’s why it’s telling how the ex-CEO was not investigated and that’s why he essentially walked free out of court and managed to be dishonorably acquitted of all charges . Lastly there may be a lack of political power to hold the Securities and Exchange Commission accountable and if we talk about the Securities and Exchange Commission is an independent agency but the overall responsibility lies with the Congress and the President it has to answer to and unfortunately the politicians Often the securities markets are more interested in scoring political points than in addressing the real problems facing them. In the end, whatever the reason, it says that the Securities and Exchange Commission should take care and it is necessary that it should listen to the public and get the support of the public and it is necessary that it should act in the public’s expectation and the public should needs to demand an explanation from government agencies and we need a Securities and Exchange Commission that is able to operate without politics and that it treats everyone the same and its rules apply to everyone Treated as equals so that money laundering will definitely not be a problem in the future, nor will any personal issue arise, and will fearlessly take the elite to the development level to protect investors from exploitation capable.