A “sandbox” for primary offerings of coins (ICO) is not the best method of regulating token, I’m sure the Commissioner of the Commission on securities and exchange Commission (SEC) Hester Pairs. She stated during the event, the Medici Conference.
“I fear that the regulators firmly grab the shovels and buckets, and therefore, often warn about the dangers of so-called “regulatory sandboxing”. I advocate for the search of suitable control methods, which will pave the way for prosperity and innovation. What worries me in regards to sandboxes, is the fact that controls are usually sitting there next to entrepreneurs”, — said Pairs.
In her words, “open communication” between regulators and those they regulate, without “sandbox”. Is this Pairs called for a “rescue” approach, in which the Governor “is watching what’s going on, but not worth it on the soul builders of sand castles, monitors their every decision”.
At the same time, Peers acknowledged that “sandbox” has been helpful for some regulators, including the UK, UAE and Singapore. In addition, she questioned the words of SEC Chairman J. Clayton, in the past, saying that “without exception, the ICO offered securities”.
“Given the lack of development in this area, I would not began to classify all the ICO time. Regulators should assess the facts and circumstances of each individual proposal,” — said Pairs.
During her speech, she also touched on the potential impact of regulation on innovation and added that the classification of all the tokens in the quality of securities may restrict the development of relevant technologies.
“Over time they will begin to look like securities. Because of this innovation, which do not fall under the description of “securities,” may never happen” — said Pairs.
She also expressed regret that currently the SEC most often communicates with the organizers of ICO through its enforcement Division, cautioned the Commission against “abuse of authority”. Peers also invited the SEC to launch a special web site, which could be considered various issues in the field of ICO, tokens, crypto-currencies and blockchain technologies.
We will remind as earlier said the representative of the SEC Robert Jackson, the Commission is primarily concerned about the protection of cryptocurrency investors.