Key takes
- SEC lawyers need a politically appointed commissioner approval to start a formal investigation.
- This change was appointed as the acting committee chairman, following the transition of leadership at the SEC.
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SEC currently requires lawyers to obtain top -level approval before starting a formal investigation, according to two information sources, who are familiar with the questions they talked about to Reuters on an anonymous condition.
The new requirements are required that the execution staff needs to secure permission from a politically appointed commissioner to issue a summoning letter, request documents, and forced testimony.
Previously, SEC commissioners maintained the process monitoring, but previously had the authority to start a formal investigation independently.
This change will be the transition of SEC leadership, including the departure of the former chairman of the last month, Gary Genler and the Democratic Party's Haime Rizaraga. President Donald Trump has appointed Mark Ueda as a deputy chairman, and the committee is currently working with Ueda, Hester Perth, and Caroline Clen Show.
According to Tyler Warner, a former bank consultant, it becomes an NFT market analyst, and the new system prevents “fraudulent attacks.” SEC commissioners are more likely to approve the investigation without certain evidence.
Conversely, changing this procedure may be the risk of missing or delaying fraud. “It's too early to call it pure positive or negative, [though] I am positive, “he added.
Under the previous administration, the SEC demanded approval from the two executive directors to formally launch the probe. The sources did not specify whether the committee officially voted to cancel the previous authority.
Executive staff can continue an unofficial survey without the approval of the commissioner, such as sending information requests.
Under the Gensler leadership, SEC has increased its regulations on major cryptographic exchange focusing on fraud and securities law violations. The approach has been criticized from both the Crypto sector and some members of the Diet, including the Democratic members, including the Democratic Party, who claimed that the interpretation of Gensler's securities law was very wide.
Gensler claimed that the role of SEC is important in protecting investors from common fraud and fraud in encryption space. However, his critic argued that this perspective leads to a brute force approach, which is considered a war with the cipher, and raises concerns about whether such actions have been justified or excessively punishment.
MARC Fagel, a retired lawyer specializing in Securities' execution and securities litigation, said that this change was one step back, the survey was slow, and the final scams were profitable.
“This is a stupid movement, because I was personally involved in the initial efforts to delegate the official order authorities, and it doesn't just take time to investigate a slow survey. That's a great news for for me. “
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